Profitability Margin Analysis Delights Active Investors: Verizon Communications (NYSE:VZ), Ophthotech (NASDAQ:OPHT)

Moving on tracing line, Verizon Communications Inc. (NYSE:VZ) need to consider for profitability analysis, in latest session share price swings at $49.81 with percentage change of 0.36%.

The Co has positive 10.40% profit margins to find consistent trends in a firm’s earnings. Gross profit margins and operating profit margins are its sub parts that firm have 59.20% and 21.50% respectively. VZ has returns on investment of 15.10%. The returns on assets were 5.50% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 64.90%, which is measuring profitability by disclosing how much profit generates by VZ with the shareholders’ money.

The firm attains analyst recommendation of 2.70 on scale of 1-5 with week’s performance of 0.28%. The firm current ratio calculated as 0.90, this value is acceptable if it lies in 1.3% to 3%. But it varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 0.80, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 4.80, sometimes it remain same with long term debt to equity ratio.

Ophthotech Corporation (NASDAQ:OPHT) also making a luring appeal, share price swings at $3.76 with percentage change of 5.03% in most recent trading session.

Profitability Valuation

Moving toward returns ratio, OPHT has returns on investment of -178.20% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as -41.60% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -916.00%, which is measuring a corporation’s profitability by revealing how much profit generates by OPHT with the shareholders’ money. The firm attains analyst recommendation of 3.00on scale of 1-5 with week’s performance of -11.53%. Moving toward ratio analysis, it has current ratio of 6.10 and quick ratio was calculated as 6.10. The firm attains analyst recommendation of 3.00out of 1-5 scale with week’s performance of -11.53%.

 

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.

Leave a Reply

Your email address will not be published.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