Encore Gross Profit vs Interest Expense Analysis

ECPG Stock

USD 41.82 0.60 1.46%

Encore Capital financial indicator trend analysis is much more than just examining Encore Capital Group latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Encore Capital Group is a good investment. Please check the relationship between Encore Capital Gross Profit and its Interest Expense accounts. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Encore Capital Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.

Gross Profit vs Interest Expense

Gross Profit vs Interest Expense Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Encore Capital Group Gross Profit account and Interest Expense. At this time, the significance of the direction appears to have very strong relationship.

The correlation between Encore Capital's Gross Profit and Interest Expense is 0.84. Overlapping area represents the amount of variation of Gross Profit that can explain the historical movement of Interest Expense in the same time period over historical financial statements of Encore Capital Group, assuming nothing else is changed. The correlation between historical values of Encore Capital's Gross Profit and Interest Expense is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Gross Profit of Encore Capital Group are associated (or correlated) with its Interest Expense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Interest Expense has no effect on the direction of Gross Profit i.e., Encore Capital's Gross Profit and Interest Expense go up and down completely randomly.

Correlation Coefficient

0.84

Relationship Direction	Positive
Relationship Strength	Strong

View All Relationships

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Encore Capital Group minus its cost of goods sold. It is profit before Encore Capital operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Most indicators from Encore Capital's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Encore Capital Group current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Encore Capital Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.

The Encore Capital's current Sales General And Administrative To Revenue is estimated to increase to 0.19, while Selling General Administrative is projected to decrease to roughly 114.9 M.

	2021	2022	2023	2024 (projected)
Gross Profit	928.0M	769.7M	571.2M	404.2M
Total Revenue	1.6B	1.4B	1.2B	717.3M

Gross Profit Total Revenue

Encore Capital fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Common Stock Total Equity	Other Current Assets	Common Stock	Other Liab	Other Assets	Long Term Debt
Total Assets		0.98	-0.54	0.47	0.77	0.86	0.98	0.84	0.81	0.88	1.0	0.85	0.96	-0.05	0.67	0.9	0.29	0.99	0.66	0.45	0.71	-0.38	0.68	0.62	0.73	0.82
Short Long Term Debt Total	0.98		-0.58	0.44	0.74	0.82	1.0	0.81	0.83	0.86	0.98	0.86	0.93	-0.03	0.61	0.9	0.32	0.98	0.68	0.44	0.65	-0.24	0.63	0.54	0.72	0.82
Other Current Liab	-0.54	-0.58		0.36	-0.51	-0.11	-0.57	-0.24	-0.75	-0.72	-0.53	-0.88	-0.57	-0.22	-0.51	-0.77	-0.31	-0.55	0.08	-0.28	-0.52	-0.12	-0.59	0.03	-0.08	-0.73
Total Current Liabilities	0.47	0.44	0.36		0.15	0.71	0.44	0.48	0.18	0.15	0.47	0.0	0.37	-0.1	0.19	0.15	-0.21	0.48	0.66	0.27	0.27	-0.31	0.18	0.38	0.57	0.24
Total Stockholder Equity	0.77	0.74	-0.51	0.15		0.68	0.74	0.86	0.54	0.76	0.78	0.73	0.69	-0.19	0.71	0.78	0.64	0.7	0.58	0.15	0.66	-0.54	0.63	0.7	0.58	0.54
Property Plant And Equipment Net	0.86	0.82	-0.11	0.71	0.68		0.82	0.89	0.47	0.61	0.88	0.52	0.78	-0.32	0.46	0.62	0.22	0.84	0.89	0.21	0.54	-0.6	0.47	0.73	0.76	0.53
Net Debt	0.98	1.0	-0.57	0.44	0.74	0.82		0.82	0.82	0.85	0.98	0.86	0.92	-0.03	0.6	0.9	0.32	0.98	0.68	0.44	0.65	-0.24	0.62	0.54	0.72	0.81
Retained Earnings	0.84	0.81	-0.24	0.48	0.86	0.89	0.82		0.43	0.64	0.85	0.6	0.75	-0.37	0.56	0.65	0.6	0.77	0.84	0.12	0.5	-0.58	0.46	0.83	0.76	0.43
Accounts Payable	0.81	0.83	-0.75	0.18	0.54	0.47	0.82	0.43		0.88	0.79	0.87	0.81	0.28	0.57	0.94	0.11	0.85	0.19	0.57	0.65	0.06	0.63	0.21	0.48	0.96
Cash	0.88	0.86	-0.72	0.15	0.76	0.61	0.85	0.64	0.88		0.88	0.93	0.93	0.02	0.63	0.97	0.3	0.88	0.35	0.42	0.66	-0.27	0.64	0.49	0.49	0.89
Non Current Assets Total	1.0	0.98	-0.53	0.47	0.78	0.88	0.98	0.85	0.79	0.88		0.85	0.95	-0.11	0.66	0.9	0.3	0.99	0.68	0.39	0.71	-0.4	0.68	0.62	0.73	0.81
Non Currrent Assets Other	0.85	0.86	-0.88	0.0	0.73	0.52	0.86	0.6	0.87	0.93	0.85		0.87	0.06	0.62	0.95	0.35	0.85	0.32	0.38	0.65	-0.16	0.67	0.33	0.43	0.87
Cash And Short Term Investments	0.96	0.93	-0.57	0.37	0.69	0.78	0.92	0.75	0.81	0.93	0.95	0.87		-0.06	0.61	0.89	0.23	0.96	0.53	0.45	0.64	-0.36	0.63	0.6	0.61	0.83
Net Receivables	-0.05	-0.03	-0.22	-0.1	-0.19	-0.32	-0.03	-0.37	0.28	0.02	-0.11	0.06	-0.06		0.13	0.09	-0.22	0.0	-0.42	0.83	0.07	0.41	0.11	-0.18	0.0	0.18
Common Stock Shares Outstanding	0.67	0.61	-0.51	0.19	0.71	0.46	0.6	0.56	0.57	0.63	0.66	0.62	0.61	0.13		0.65	0.29	0.63	0.23	0.37	0.91	-0.3	0.93	0.39	0.37	0.59
Non Current Liabilities Total	0.9	0.9	-0.77	0.15	0.78	0.62	0.9	0.65	0.94	0.97	0.9	0.95	0.89	0.09	0.65		0.31	0.91	0.39	0.45	0.71	-0.2	0.69	0.43	0.55	0.93
Other Stockholder Equity	0.29	0.32	-0.31	-0.21	0.64	0.22	0.32	0.6	0.11	0.3	0.3	0.35	0.23	-0.22	0.29	0.31		0.21	0.28	-0.1	0.02	-0.14	0.05	0.55	0.3	0.0
Total Liab	0.99	0.98	-0.55	0.48	0.7	0.84	0.98	0.77	0.85	0.88	0.99	0.85	0.96	0.0	0.63	0.91	0.21		0.62	0.49	0.7	-0.31	0.67	0.55	0.71	0.86
Property Plant And Equipment Gross	0.66	0.68	0.08	0.66	0.58	0.89	0.68	0.84	0.19	0.35	0.68	0.32	0.53	-0.42	0.23	0.39	0.28	0.62		0.05	0.3	-0.5	0.23	0.64	0.7	0.24
Total Current Assets	0.45	0.44	-0.28	0.27	0.15	0.21	0.44	0.12	0.57	0.42	0.39	0.38	0.45	0.83	0.37	0.45	-0.1	0.49	0.05		0.33	0.09	0.32	0.26	0.42	0.5
Common Stock Total Equity	0.71	0.65	-0.52	0.27	0.66	0.54	0.65	0.5	0.65	0.66	0.71	0.65	0.64	0.07	0.91	0.71	0.02	0.7	0.3	0.33		-0.32	0.99	0.26	0.34	0.72
Other Current Assets	-0.38	-0.24	-0.12	-0.31	-0.54	-0.6	-0.24	-0.58	0.06	-0.27	-0.4	-0.16	-0.36	0.41	-0.3	-0.2	-0.14	-0.31	-0.5	0.09	-0.32		-0.27	-0.64	-0.43	-0.06
Common Stock	0.68	0.63	-0.59	0.18	0.63	0.47	0.62	0.46	0.63	0.64	0.68	0.67	0.63	0.11	0.93	0.69	0.05	0.67	0.23	0.32	0.99	-0.27		0.22	0.28	0.69
Other Liab	0.62	0.54	0.03	0.38	0.7	0.73	0.54	0.83	0.21	0.49	0.62	0.33	0.6	-0.18	0.39	0.43	0.55	0.55	0.64	0.26	0.26	-0.64	0.22		0.7	0.16
Other Assets	0.73	0.72	-0.08	0.57	0.58	0.76	0.72	0.76	0.48	0.49	0.73	0.43	0.61	0.0	0.37	0.55	0.3	0.71	0.7	0.42	0.34	-0.43	0.28	0.7		0.39
Long Term Debt	0.82	0.82	-0.73	0.24	0.54	0.53	0.81	0.43	0.96	0.89	0.81	0.87	0.83	0.18	0.59	0.93	0.0	0.86	0.24	0.5	0.72	-0.06	0.69	0.16	0.39

Click cells to compare fundamentals

Encore Capital Account Relationship Matchups

Encore Capital fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	4.9B	4.9B	4.6B	4.5B	4.6B	4.9B
Short Long Term Debt Total	3.5B	3.3B	3.0B	4.0B	3.3B	3.5B
Other Current Liab	(1.2B)	(743.2M)	(650.5M)	(887.0M)	189.9M	199.4M
Total Current Liabilities	223.9M	215.9M	229.6M	198.2M	689.6M	724.1M
Total Stockholder Equity	1.0B	1.2B	1.2B	1.2B	936.5M	487.0M
Property Plant And Equipment Net	120.1M	127.3M	119.9M	113.9M	171.0M	179.5M
Net Debt	3.3B	3.1B	2.8B	3.8B	3.2B	3.3B
Retained Earnings	888.1M	1.1B	1.2B	1.3B	1.0B	1.1B
Accounts Payable	223.9M	192.7M	195.1M	180.4M	207.5M	111.7M
Cash	192.3M	189.2M	189.6M	143.9M	158.4M	83.4M
Non Current Assets Total	4.7B	4.7B	4.4B	4.4B	4.4B	4.6B
Non Currrent Assets Other	405.3M	316.0M	283.8M	323.0M	158.2M	141.4M
Cash And Short Term Investments	192.3M	189.2M	189.6M	143.9M	158.4M	180.8M
Net Receivables	45.0M	38.8M	22.6M	16.1M	9.1M	8.6M
Common Stock Shares Outstanding	31.5M	31.7M	31.2M	26.1M	23.7M	24.8M
Liabilities And Stockholders Equity	4.9B	4.9B	4.6B	4.5B	4.6B	4.9B
Non Current Liabilities Total	3.7B	3.4B	3.2B	3.1B	3.0B	1.6B
Other Stockholder Equity	222.6M	230.4M	1.2B	1.3B	11.1M	10.5M
Total Liab	3.9B	3.6B	3.4B	3.3B	3.7B	3.9B
Property Plant And Equipment Gross	195.3M	199.5M	119.9M	339.1M	340.1M	357.1M
Total Current Assets	192.3M	189.2M	189.6M	143.9M	209.1M	234.4M
Accumulated Other Comprehensive Income	(88.8M)	(68.8M)	(53.5M)	(98.8M)	(123.9M)	(117.7M)
Common Stock Total Equity	309K	311K	313K	233K	268.0K	243.9K
Other Current Assets	(237.3M)	(270.1M)	(212.3M)	48.6M	(167.4M)	(159.1M)
Common Stock	309K	311K	313K	233K	235K	244.5K
Other Liab	44.5M	146.9M	195.9M	111.2M	127.9M	134.2M
Other Assets	184.8M	349.2M	335.3M	341.1M	392.2M	411.8M
Long Term Debt	3.5B	2.3B	2.1B	1.8B	2.8B	1.5B
Short Term Debt	1.2B	959.1M	880.1M	1.1B	499.6M	645.5M
Property Plant Equipment	195.3M	127.3M	119.9M	113.9M	131.0M	137.5M
Good Will	884.2M	907.0M	897.8M	821.2M	606.5M	532.0M
Intangible Assets	51.4M	45.0M	36.3M	22.1M	48K	45.6K
Inventory	(2.5M)	42.2M	(3.5M)	(64.7M)	(58.3M)	(55.3M)
Net Tangible Assets	138.0M	310.6M	287.5M	358.4M	412.2M	432.8M
Noncontrolling Interest In Consolidated Entity	(9.9M)	1.7M	3.2M	2.5M	2.2M	2.3M
Retained Earnings Total Equity	888.1M	1.1B	1.2B	1.3B	1.5B	1.5B

Encore Capital Investors Sentiment

The influence of Encore Capital's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Encore. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.

Investor biases related to Encore Capital's public news can be used to forecast risks associated with an investment in Encore. The trend in average sentiment can be used to explain how an investor holding Encore can time the market purely based on public headlines and social activities around Encore Capital Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Encore Capital's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Encore Capital's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Encore Capital's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Encore Capital.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Encore Capital in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Encore Capital's short interest history, or implied volatility extrapolated from Encore Capital options trading.

Pair Trading with Encore Capital

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Encore Capital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Encore Capital will appreciate offsetting losses from the drop in the long position's value.

Moving against Encore Stock

0.86	DB	Deutsche Bank AG Earnings Call This Week	Pair Corr
0.85	SCHW	Charles Schwab Corp Financial Report 16th of July 2024	Pair Corr
0.83	LU	Lufax Holding Financial Report 27th of May 2024	Pair Corr
0.73	C	Citigroup Financial Report 12th of July 2024	Pair Corr
0.73	GS	Goldman Sachs Group Financial Report 17th of July 2024	Pair Corr

The ability to find closely correlated positions to Encore Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Encore Capital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Encore Capital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Encore Capital Group to buy it.

The correlation of Encore Capital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Encore Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Encore Capital Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Encore Capital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

When determining whether Encore Capital Group is a strong investment it is important to analyze Encore Capital's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Encore Capital's future performance. For an informed investment choice regarding Encore Stock, refer to the following important reports:

How To Invest In Encore

Details

Is Encore Stock a good investment?

Details

What is Encore Capital's Net Worth?

Details

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Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Encore Capital Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.

You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Complementary Tools for Encore Stock analysis

When running Encore Capital's price analysis, check to measure Encore Capital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Encore Capital is operating at the current time. Most of Encore Capital's value examination focuses on studying past and present price action to predict the probability of Encore Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Encore Capital's price. Additionally, you may evaluate how the addition of Encore Capital to your portfolios can decrease your overall portfolio volatility.

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Is Encore Capital's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Encore Capital. If investors know Encore will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Encore Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.35)

Earnings Share

(8.72)

Revenue Per Share

51.655

Quarterly Revenue Growth

0.185

Return On Assets

0.0374

The market value of Encore Capital Group is measured differently than its book value, which is the value of Encore that is recorded on the company's balance sheet. Investors also form their own opinion of Encore Capital's value that differs from its market value or its book value, called intrinsic value, which is Encore Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Encore Capital's market value can be influenced by many factors that don't directly affect Encore Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Encore Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Encore Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encore Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Encore Gross Profit vs Interest Expense Analysis

Gross Profit vs Interest Expense

Gross Profit vs Interest Expense Correlation Analysis

Correlation Coefficient

Gross Profit

Interest Expense

Encore Capital fundamental ratios Correlations

Encore Capital Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Encore Capital fundamental ratios Accounts

Encore Capital Investors Sentiment

Pair Trading with Encore Capital

Moving against Encore Stock

Complementary Tools for Encore Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Non Current Assets Total	+ 1.0	Total Assets
Net Debt	+ 1.0	Short Long Term Debt Total
Total Liab	+ 0.99	Total Assets
Total Liab	+ 0.99	Non Current Assets Total
Common Stock	+ 0.99	Common Stock Total Equity
Short Long Term Debt Total	+ 0.98	Total Assets

Non Currrent Assets Other	- 0.88	Other Current Liab
Non Current Liabilities Total	- 0.77	Other Current Liab
Accounts Payable	- 0.75	Other Current Liab
Long Term Debt	- 0.73	Other Current Liab
Cash	- 0.72	Other Current Liab
Other Liab	- 0.64	Other Current Assets