Yahoo! Inc. (NASDAQ:YHOO)- Outshines Stocks with Rosy Profitability: Juniper Networks, Inc. (NYSE:JNPR)

Yahoo! Inc. (NASDAQ:YHOO) need to consider for profitability analysis, in latest session share price swings at $38.90 with percentage change of 0.59%. Yahoo is selling its core assets including news portals Yahoo Finance and Yahoo Sports to Verizon for $4.8 billion. But a move by the company to ask its users to change their passwords could cause some users to leave, according to a Wall Street Journal report.

But a drop in the subscriber count and engagement with Yahoo services as a result of users ditching the service could reduce the valuation of Yahoo’s core assets from Verizon’s perspective, which could cause Verizon to renegotiate the price it had agreed to pay for the Yahoo assets. Verizon had been reviewing the impact of the earlier disclosed hacking of Yahoo systems, which affected more than 500 million accounts. The newly revealed breach affected more than 1 billion accounts.

The Co has negative -96.70% profit margins to find consistent trends in a firm’s earnings. Gross profit margins is its sub parts that firm have 49%. YHOO has returns on investment of -15.40%. The returns on assets were -10.20% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -15.90%, which is measuring profitability by disclosing how much profit generates by YHOO with the shareholders’ money.

The firm attains analyst recommendation of 2.50 on scale of 1-5 with week’s performance of 0.44%. The firm current ratio calculated as 6.10, 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 6.10, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.04, sometimes its remain same with long term debt to equity ratio.

Juniper Networks, Inc. (NYSE:JNPR) also making a luring appeal, share price swings at $28.60 with percentage change of 1.20% in most recent trading session.

Profitability Valuation

The profit margins can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 12.20% profit margins 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 margins are its sub parts that firm has 62.70% and 17.90% respectively. Moving toward returns ratio, JNPR has returns on investment of 10.60% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 6.70% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 12.90%, which is measuring a corporation’s profitability by revealing how much profit generates by JNPR with the shareholders’ money. The firm attains analyst recommendation of 2.60 on scale of 1-5.

Moving toward ratio analysis, it has current ratio of 2.30 and quick ratio was calculated as 2.20. The debt to equity ratio appeared as 0.45 for seeing its liquidity position. The firm attains analyst recommendation of 2.60 out of 1-5 scale.

 

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