Profitability Margin Analysis Delights Active Investors: DryShips Inc. (NASDAQ:DRYS), KNOT Offshore Partners LP (NYSE:KNOP)

To stick with focus on profitability valuation, DryShips Inc. (NASDAQ:DRYS) also listed in significant eye catching mover, DRYS attains returns on investment ratio of -271.10%, which suggests it’s viable on security that has lesser ROI.

DryShips Inc. (DRYS ) reported that, it has agreed to enter into a “zero cost” Option Contract with companies controlled by its Chairman and Chief Executive Officer, Mr. George Economou, to purchase up to four high specifications Very Large Gas Carriers capable of carrying liquefied petroleum gas that are currently under construction at Hyundai Heavy Industries.

The gross profit margins can be giving more focus view that is -2.30% respectively. Turns back to returns ratios, the co’s returns on assets calculated as -271.10%; that gives an idea as to how efficient management is at using its assets to generate earnings.

KNOT Offshore Partners LP (NYSE:KNOP) kept active in profitability ratio analysis, on current situation shares price knocking up -8.68% to $22.10. The total volume of 2.8 Million shares held in the session, while on average its shares change hands 73.13 shares.

Efficiency Evaluation in Focus

Entering into profitability analysis, the co has noticeable returns on equity ratio of 11.70%, which discloses how corporation’s management efficiently generates profit from shareholders invested money. The returns on investment very popular metric among passive investors, it stands at 5.80%, when it lies in positive figure than security is feasible for investment or goes for higher ROI stocks. To see the other side of picture, profit margins of KNOP stands at positive 34.60%; that indicates a firm actually every dollar of sales keeps in earnings. The 4.90% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of KNOP, it holds price to book ratio of 1.30 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 11.25, and price to earnings ratio calculated as 11.15. The price to earnings growth ration calculated as 0.75. KNOP is presenting price to cash flow of 24.17.

 

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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