Red Hat Gross Profit vs. Net Income
Based on Red Hat's profitability indicators, Red Hat may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in October. Profitability indicators assess Red Hat's ability to earn profits and add value for shareholders.
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.
Please note, there is a significant difference between Red Hat's value and its price as these two are different measures arrived at by different means. Investors typically determine if Red Hat is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Red Hat'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.
For Red Hat profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Red Hat to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Red Hat utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Red Hat's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Red Hat over time as well as its relative position and ranking within its peers.
Red |
Red Hat Net Income vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Red Hat's current stock value. Our valuation model uses many indicators to compare Red Hat value to that of its competitors to determine the firm's financial worth. Red Hat is currently regarded as top stock in gross profit category among its peers. It also is currently regarded as top stock in net income category among its peers making up about 0.16 of Net Income per Gross Profit. The ratio of Gross Profit to Net Income for Red Hat is roughly 6.19 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Red Hat by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Red Net Income vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Red Hat |
| = | 2.86 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Red Hat |
| = | 461.92 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Red Net Income Comparison
Red Hat is currently under evaluation in net income category among its peers.
Red Hat Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Red Hat, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Red Hat will eventually generate negative long term returns. The profitability progress is the general direction of Red Hat's change in net profit over the period of time. It can combine multiple indicators of Red Hat, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Red Hat, Inc. provides open source software solutions to develop and offer operating system, virtualization, management, middleware, cloud, and storage technologies to various enterprises worldwide. Red Hat, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina. Red Hat operates under Software - Application classification in USA and is traded on New York Stock Exchange. It employs 13360 people.
Red Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Red Hat. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Red Hat position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Red Hat's important profitability drivers and their relationship over time.
Use Red Hat in pair-trading
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 Red Hat 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 Red Hat will appreciate offsetting losses from the drop in the long position's value.Red Hat Pair Trading
Red Hat Pair Trading Analysis
The ability to find closely correlated positions to Texas Instruments could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Texas Instruments 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 Texas Instruments - 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 Texas Instruments Incorporated to buy it.
The correlation of Texas Instruments 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 Texas Instruments moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Texas Instruments 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 Texas Instruments 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.Use Investing Themes to Complement your Red Hat position
In addition to having Red Hat in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Cancer Fighters Thematic Idea Now
Cancer Fighters
Biotech and medical diagnostic companies that work on researching drugs or manufacturing of medical and therapeutics equipment that is directly related to the research, treatment, and detection of cancer or cancer related diseases. The Cancer Fighters theme has 60 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cancer Fighters Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Consideration for investing in Red Stock
If you are still planning to invest in Red Hat check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Red Hat's history and understand the potential risks before investing.
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |