Caterpillar Inc. (NYSE:CAT) [Trend Analysis] share price swings at $162.58 with percentage change of -2.68% in most recent trading session.
CAT indeed has a lot to explore for the stakeholder, as looked at the specific technical indicators that showcase the instant and chronological performances of the stock. Through the help of financial ratio analysis we can determine firm’s upshot and its return to its investors. As the profitability measures are important to company managers and owners alike. Starting from first part of this ratio analysis; ‘Margins’, and the profit margin can answer importantly to find consistent trends in a firm’s earnings, the CAT has positive 1.70% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. And its sub part Gross profit margin standing at figure of 32.00%, while the firm has operating profit margin of 9.70%.
Moving toward the second part of analysis is ‘Returns’, Caterpillar Inc. (NYSE:CAT) has returns on investment of 2.20% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments. While returns on assets calculated as 1.00% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 5.30%, which is measuring a corporation’s profitability by revealing how much profit generates by CAT with the shareholders’ money. On all these fact firm receives analyst recommendation of 2.40 on scale of 1-5, according to factsheet.
The CAT also have attractive liquidity position, it has current ratio of 1.30 and quick ratio was calculated as 1.00. The debt to equity ratio appeared as 2.55 for seeing its liquidity position. The firm attains analyst recommendation of 2.40 out of 1-5 scale with week’s performance of -4.86%.
Cenovus Energy Inc. (NYSE:CVE) [Trend Analysis] in recent session share price swings at $10.08 with change of -3.08%.
CVE has positive 18.40% 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 48.40% and 8.10% respectively. The firm has returns on investment of 0.20%. The returns on assets were 8.40% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 18.40%, which is measuring profitability by disclosing how much profit generates by CVE with the shareholders’ money.
The firm attains analyst recommendation of 2.60 on scale of 1-5 with week’s performance of -2.98%. The firm current ratio calculated as 1.40, 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 1.10, which indicates firm has sufficient short-term assets to cover its immediate liabilities. Further, the firm has debt to equity ratio of 0.01, sometimes it remain same with long term debt to equity ratio.