Fiat Chrysler Automobiles (NYSE:FCAU)- Stocks Ensnare on Profitability Ratio: International Paper (NYSE:IP)

Moving on tracing line, Fiat Chrysler Automobiles N.V. (NYSE:FCAU) need to consider for profitability analysis, in latest session share price swings at $9.51 with percentage change of 0.16%.  The firm attains analyst recommendation of 2.30 on scale of 1-5 with week’s performance of -10.22%.

The Environmental Protection Agency accused Fiat Chrysler Automobiles (FCAU)  of violating the Clean Air Act by installing software that allowed some of its diesel trucks to register lower levels of pollutants. Moody’s Investors Service deemed the charge “credit negative” and said the company could incur “significant fines and legal costs” in a report published Monday.

However, the rating agency things the credit effects will be less than suffered by Volkswagen (VLKAY). Analysts write:  The allegations are credit negative for FCA because they may result in significant fines and legal costs. But the credit effect would likely be less damaging than that sustained by Volkswagen Aktiengesellschaft (VW, A3 negative) in its US emissions crisis. The EPA’s allegations against Fiat Chrysler cover about 104,000 vehicles in the US, a far smaller number of vehicles than the 585,000 VW vehicles in the US with illegal emissions software.

International Paper Company (NYSE:IP) also making a luring appeal, share price swings at $53.07 with percentage change of 0.15% 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 4.10% profit margins 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 28.50% and 7.20% respectively. Moving toward returns ratio, IP has returns on investment of 11.50% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 2.80% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 21.10%, which is measuring a corporation’s profitability by revealing how much profit generates by IP with the shareholders’ money. The firm attains analyst recommendation of 2.60 on scale of 1-5 with week’s performance of -1.17%.

Moving toward ratio analysis, it has current ratio of 2.30 and quick ratio was calculated as 1.70. The debt to equity ratio appeared as 2.59 for seeing its liquidity position. The firm attains analyst recommendation of 2.60 out of 1-5 scale with week’s performance of -1.17%.

 

About Devon Leftovich

Devon Leftovich is an entrepreneur. He has been writing and editing professionally for over six years. He is admin editor and senior content writer of SWR. However, he has determined to give investors something rare, a dignified partner who can manage money with integrity and a clear conscience about the degree of due diligence behind investment decisions. He said, "I love the financial world because it is like one big puzzle and I hope we the SWR help each other out to solve the puzzle to help us realize our dreams." Interests: Analysis of different Companies; including news and analyst rating updates. He performs analysis of Companies and publicizes important information for investor/traders community. Stocks long-term and short-term holding views, Tech Stocks

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