Bed Bath & Beyond (NASDAQ:BBBY)- Profitability Ratios Proving Vital for Investment: The Michaels Companies (NASDAQ:MIK)

Bed Bath & Beyond Inc. (NASDAQ:BBBY) need to consider for profitability analysis, in latest session share price swings at $39.97 with percentage change of -1.75%.

The Co has positive 5.90% profit margin to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin are its sub parts that firm have 37.60% and 9.90% respectively. BBBY has returns on investment of 22.90%. The returns on assets was 10.70% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 28.00%, which is measuring profitability by disclosing how much profit generates by BBBY with the shareholders’ money.

The firm attains analyst recommendation of 3.30 on scale of 1-5 with week’s performance of -2.32%. The firm current ratio calculated as 1.70, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 0.40, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.57, sometimes its remain same with long term debt to equity ratio.

The Michaels Companies, Inc. (NASDAQ:MIK) also making a luring appeal, share price swings at $21.64 with percentage change of -1.64% in most recent trading session.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 7.10% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margin are its sub parts that firm has 39.20% and 13.50% respectively.

While returns on assets calculated as 17.80% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -21.60%, which is measuring a corporation’s profitability by revealing how much profit generates by MIK with the shareholders’ money. The firm attains analyst recommendation of 2.30 on scale of 1-5 with week’s performance of 5.46%.

Moving toward ratio analysis, it has current ratio of 1.50 and quick ratio was calculated as 0.30. The firm attains analyst recommendation of 2.30 out of 1-5 scale with week’s performance of 5.46%.

 

About Aaron Smithies

Aaron Smithies has a wide look on current monetary and financial events. He is an editor and a writer. His views; At Streetwise Report, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Interests: Biotech, Finical markets, Dividend stock ideas & income, Energy stocks, Consumer goods stocks

Leave a Reply

Your email address will not be published. Required fields are marked *