Home / Street Sector / Stocks Ensnare on Profitability Ratio: Aetna Inc. (NYSE:AET), Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)

Stocks Ensnare on Profitability Ratio: Aetna Inc. (NYSE:AET), Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)

Waking on tracing line of previous stocks, Aetna Inc. (NYSE:AET) also making a luring appeal, share price swings at $111.43 with percentage change of 2.71% 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 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. Moving toward returns ratio, AET 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 4.10% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 14.50%, which is measuring a corporation’s profitability by revealing how much profit generates by AET with the shareholders’ money. The firm attains analyst recommendation of 2.00 on scale of 1-5 with week’s performance of -0.57%. The debt to equity ratio appeared as 1.17 for seeing its liquidity position. The firm attains analyst recommendation of 2.00 out of 1-5 scale with week’s performance of -0.57%.

Moving on tracing line, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) need to consider for profitability analysis, in latest session share price swings at $1.53 with percentage change of -2.55%.

Gross profit margin and operating profit margin are its sub parts that firm have 65.00%. ARNA has returns on investment of -84.70%. The returns on assets was -42.20% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -226.10%, which is measuring profitability by disclosing how much profit generates by ARNA with the shareholders’ money.

The firm attains analyst recommendation of 2.40 on scale of 1-5 with week’s performance of -16.85%. The firm current ratio calculated as 2.60, 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 2.40, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 4.91, sometimes its remain same with long term debt to equity ratio.

 

About Aaron Smithies

Aaron Smithies has a wide look on current monetary and financial events. He is an editor and a writer. His views; At Streetwise Report, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Interests: Biotech, Finical markets, Dividend stock ideas & income, Energy stocks, Consumer goods stocks

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