Covanta Holding (NYSE:CVA)- Most Active Trio on Profitability Estimation: Quanta Services (NYSE:PWR)

Covanta Holding Corporation (NYSE:CVA) also making a luring appeal, share price swings at $15.30 with percentage change of -0.33% in most recent trading session.  Covanta Holding Corporation (CVA) reported that the Board of Directors has declared a quarterly cash dividend of $0.25 per share.  The next dividend will be payable on January 6, 2017 to stockholders of record as of the close of business on December 30, 2016.

“The Company is committed to its dividend, and our goal remains to increase it over the long-term,” said Stephen J. Jones, Covanta’s President and CEO.  “However, given the very robust level of our payout recently, and in light of our near-term outlook for Free Cash Flow growth, we believe that maintaining our dividend at its current level is appropriate.”

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 3.90% 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 29.50% and 5.70% respectively. Moving toward returns ratio, CVA has returns on investment of 5.90% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 1.50% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 12.00%, which is measuring a corporation’s profitability by revealing how much profit generates by CVA with the shareholders’ money. The firm attains analyst recommendation of 1.80 on scale of 1-5 with week’s performance of 6.97%.

Moving toward ratio analysis, it has current ratio of 1.70 and quick ratio was calculated as 1.70. The debt to equity ratio appeared as 5.40 for seeing its liquidity position. The firm attains analyst recommendation of 1.80 out of 1-5 scale with week’s performance of 6.97%.

Moving on tracing line, Quanta Services, Inc. (NYSE:PWR) need to consider for profitability analysis, in latest session share price swings at $34.96 with percentage change of -0.31%.

The Co has positive 1.40% 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 12.50% and 2.80% respectively. PWR has returns on investment of 3.90%. The returns on assets was 2.00% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 3.30%, which is measuring profitability by disclosing how much profit generates by PWR with the shareholders’ money.

The firm attains analyst recommendation of 1.80 on scale of 1-5 with week’s performance of 3.27%. The firm current ratio calculated as 1.90, 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 1.50, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.15, sometimes its remain same with long term debt to equity ratio.

 

About Gerard Bergeron

Gerard Bergeron covers Bio-pharmacy or healthcare sector Press Releases news updates. He has extensive three year of experience in content writing as freelance writer. He performs analysis of Healthcare Companies and provides worthy information for investor community. He is an experienced writer with a precise grasp of the English language and a clear, compelling writing style.

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