Home / Tech & Systems / Stocks for Portfolio with Profitability Analysis: Electronic Arts Inc. (NASDAQ:EA), Cadence Design Systems, Inc. (NASDAQ:CDNS)

Stocks for Portfolio with Profitability Analysis: Electronic Arts Inc. (NASDAQ:EA), Cadence Design Systems, Inc. (NASDAQ:CDNS)

Moving on tracing line, Electronic Arts Inc. (NASDAQ:EA) need to consider for profitability analysis, in latest session share price swings at $79.24 with percentage change of -2.62%.

The Co has positive 27.60% 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 70.30% and 22.30% respectively. EA has returns on investment of 25.90%. The returns on assets was 18.60% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 36.60%, which is measuring profitability by disclosing how much profit generates by EA with the shareholders’ money.

The firm attains analyst recommendation of 2.00 on scale of 1-5 with week’s performance of 1.92%. The firm current ratio calculated as 2.10, 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 2.10, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.27, sometimes its remain same with long term debt to equity ratio.

Waking on tracing line of previous stocks, Cadence Design Systems, Inc. (NASDAQ:CDNS) also making a luring appeal, share price swings at $26.28 with percentage change of -1.17% 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 13.70% 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 86.50% and 15.30% respectively. Moving toward returns ratio, CDNS has returns on investment of 15.70% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 10.40% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 21.20%, which is measuring a corporation’s profitability by revealing how much profit generates by CDNS with the shareholders’ money. The firm attains analyst recommendation of 2.20 on scale of 1-5 with week’s performance of -1.83%.

Moving toward ratio analysis, it has current ratio of 1.50 and quick ratio was calculated as 1.40. The debt to equity ratio appeared as 0.75 for seeing its liquidity position. The firm attains analyst recommendation of 2.20 out of 1-5 scale with week’s performance of -1.83%.

 

About Gerard Bergeron

Gerard Bergeron covers Bio-pharmacy or healthcare sector Press Releases news updates. He has extensive three year of experience in content writing as freelance writer. He performs analysis of Healthcare Companies and provides worthy information for investor community. He is an experienced writer with a precise grasp of the English language and a clear, compelling writing style.

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