Fitbit, Inc. (NYSE:FIT)- Stocks Under Profitability Radar: Automatic Data Processing (ADP)

Fitbit, Inc. (NYSE:FIT) need to consider for profitability analysis, in latest session share price swings at $5.77 with percentage change of -0.69%. Wearable activity tracker Fitbit is being accused by its rival Jawbone of stealing trade secrets, Bloomberg reports. The two companies have been caught up in legal battles since May 2015, when Jawbone sued Fitbit for stealing employees and critical proprietary information.

“The evidence developed to date in this litigation confirms a conspiracy by Fitbit and the individual defendants to steal Jawbone’s coveted trade secrets and to use them to enhance Fitbit’s position in the marketplace, in clear violation of California law,” Jawbone said in last week’s filing as declared by Bloomberg.

The Co has positive 4.30% 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 46.30% and 8.00% respectively. FIT has returns on investment of 24.00%. The returns on assets were 6.20% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 9.60%, which is measuring profitability by disclosing how much profit generates by FIT with the shareholders’ money.

The firm attains analyst recommendation of 3.00 on scale of 1-5 with week’s performance of -5.87%. The firm current ratio calculated as 2.80, 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 2.30, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.00, sometimes its remain same with long term debt to equity ratio.

Automatic Data Processing, Inc. (NASDAQ:ADP) also making a luring appeal, share price swings at $97.65 with percentage change of 1.11% 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 14.10% 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 43.50% and 20.90% respectively. Moving toward returns ratio, ADP has returns on investment of 22.80% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 4.00% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 39.70%, which is measuring a corporation’s profitability by revealing how much profit generates by ADP with the shareholders’ money. The firm attains analyst recommendation of 2.70 on scale of 1-5 with week’s performance of 1.38%.

Moving toward ratio analysis, it has current ratio of 1.10 and quick ratio was calculated as 1.10. The debt to equity ratio appeared as 0.52 for seeing its liquidity position. The firm attains analyst recommendation of 2.70 out of 1-5 scale with week’s performance of 1.38%.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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