Equinix Net Income vs. Retained Earnings

EQIX Stock  USD 825.33  10.02  1.23%   
Based on the key profitability measurements obtained from Equinix's financial statements, Equinix is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in April. Profitability indicators assess Equinix's ability to earn profits and add value for shareholders.

Equinix Net Income

1.02 Billion

Operating Cash Flow Sales Ratio is likely to rise to 0.43 in 2024, whereas Price To Sales Ratio is likely to drop 8.75 in 2024. At this time, Equinix's Operating Income is fairly stable compared to the past year. Net Income is likely to rise to about 1 B in 2024, despite the fact that Accumulated Other Comprehensive Income is likely to grow to (1.5 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.40.4244
Notably Down
Slightly volatile
For Equinix profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Equinix to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Equinix utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Equinix's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Equinix over time as well as its relative position and ranking within its peers.
  
Check out Investing Opportunities.
For more information on how to buy Equinix Stock please use our How to Invest in Equinix guide.
Is Equinix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Equinix. If investors know Equinix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Equinix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.731
Dividend Share
14.49
Earnings Share
10.27
Revenue Per Share
82.834
Quarterly Revenue Growth
0.154
The market value of Equinix is measured differently than its book value, which is the value of Equinix that is recorded on the company's balance sheet. Investors also form their own opinion of Equinix's value that differs from its market value or its book value, called intrinsic value, which is Equinix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Equinix's market value can be influenced by many factors that don't directly affect Equinix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Equinix's value and its price as these two are different measures arrived at by different means. Investors typically determine if Equinix is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equinix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Equinix Retained Earnings vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Equinix's current stock value. Our valuation model uses many indicators to compare Equinix value to that of its competitors to determine the firm's financial worth.
Equinix is one of the top stocks in net income category among related companies. It is one of the top stocks in retained earnings category among related companies . At this time, Equinix's Net Income is fairly stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Equinix by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Equinix's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Equinix's earnings, one of the primary drivers of an investment's value.

Equinix Retained Earnings vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Equinix

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
969.18 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.

Equinix

Retained Earnings

 = 

Beginning RE + Income

-

Dividends

 = 
(4.76 B)
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.

Equinix Retained Earnings Comparison

Equinix is currently under evaluation in retained earnings category among related companies.

Equinix Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Equinix, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Equinix will eventually generate negative long term returns. The profitability progress is the general direction of Equinix's change in net profit over the period of time. It can combine multiple indicators of Equinix, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-1.6 B-1.5 B
Operating Income1.5 B1.6 B
Net Income969.2 MB
Income Tax Expense155.2 M163 M
Income Before Tax1.1 B1.2 B
Total Other Income Expense Net-353.6 M-335.9 M
Net Income Applicable To Common Shares810 M850.5 M
Net Income From Continuing Ops870.4 M913.9 M
Non Operating Income Net Other-13.3 M-14 M
Interest Income84.5 M43.2 M
Net Interest Income-308.6 M-324 M
Change To Netincome549.8 M577.3 M
Net Income Per E B T 0.86  0.94 

Equinix Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Equinix. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Equinix position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Equinix's important profitability drivers and their relationship over time.

Use Equinix in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Equinix position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Equinix will appreciate offsetting losses from the drop in the long position's value.

Equinix Pair Trading

Equinix Pair Trading Analysis

The ability to find closely correlated positions to Equinix could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Equinix when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Equinix - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Equinix to buy it.
The correlation of Equinix is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Equinix moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Equinix moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Equinix can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Equinix position

In addition to having Equinix in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Climate Change Thematic Idea Now

Climate Change
Climate Change Theme
Large and medium sized entities that are committing to fully or partially replace some traditional services or products with renewables sources of energy in order to combat global climate change. The Climate Change theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Climate Change Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Equinix offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Equinix's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Equinix Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Equinix Stock:
Check out Investing Opportunities.
For more information on how to buy Equinix Stock please use our How to Invest in Equinix guide.
You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Complementary Tools for Equinix Stock analysis

When running Equinix's price analysis, check to measure Equinix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Equinix is operating at the current time. Most of Equinix's value examination focuses on studying past and present price action to predict the probability of Equinix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Equinix's price. Additionally, you may evaluate how the addition of Equinix to your portfolios can decrease your overall portfolio volatility.
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
To fully project Equinix's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Equinix at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Equinix's income statement, its balance sheet, and the statement of cash flows.
Potential Equinix investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Equinix investors may work on each financial statement separately, they are all related. The changes in Equinix's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Equinix's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.