Home / Street Sector / Vigorous Stocks Need to Consider: Electronic Arts Inc. (NASDAQ:EA), Red Hat, Inc. (NYSE:RHT)

Vigorous Stocks Need to Consider: Electronic Arts Inc. (NASDAQ:EA), Red Hat, Inc. (NYSE:RHT)

Moving on tracing line, Electronic Arts Inc. (NASDAQ:EA) need to consider for profitability analysis, in latest session share price swings at $82.59 with percentage change of 1.02%.

The Co has positive 25.90% 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 69.50% and 21.20% respectively. EA has returns on investment of 25.90%. The returns on assets was 17.70% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 34.80%, which is measuring profitability by disclosing how much profit generates by EA with the shareholders’ money.

The firm attains analyst recommendation of 1.90 on scale of 1-5 with week’s performance of -1.46%. The firm current ratio calculated as 2.40, 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 0.30, sometimes its remain same with long term debt to equity ratio.

Waking on tracing line of previous stocks, Red Hat, Inc. (NYSE:RHT) also making a luring appeal, share price swings at $77.20 with percentage change of 0.48% 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 9.80% 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 85.10% and 13.30% respectively. Moving toward returns ratio, RHT has returns on investment of 10.30% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 5.40% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 16.40%, which is measuring a corporation’s profitability by revealing how much profit generates by RHT with the shareholders’ money. The firm attains analyst recommendation of 2.00 on scale of 1-5 with week’s performance of -0.77%.

Moving toward ratio analysis, it has current ratio of 1.20 and quick ratio was calculated as 1.20. The debt to equity ratio appeared as 0.56 for seeing its liquidity position. The firm attains analyst recommendation of 2.00 out of 1-5 scale with week’s performance of -0.77%.

 

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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