Interactive Brokers Current Ratio vs. Current Valuation

IBKR Stock  USD 111.71  0.28  0.25%   
Based on Interactive Brokers' profitability indicators, Interactive Brokers' profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Interactive Brokers' ability to earn profits and add value for shareholders.

Interactive Brokers Current Ratio

1.06

At this time, Interactive Brokers' Operating Cash Flow Sales Ratio is relatively stable compared to the past year. As of 03/29/2024, Days Of Sales Outstanding is likely to grow to 2,995, while Price To Sales Ratio is likely to drop 1.05. At this time, Interactive Brokers' Accumulated Other Comprehensive Income is relatively stable compared to the past year. As of 03/29/2024, Income Before Tax is likely to grow to about 3.2 B, while Total Other Income Expense Net is likely to drop (3.7 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.990.9389
Notably Up
Pretty Stable
Net Profit Margin0.07260.0764
Notably Down
Slightly volatile
Operating Profit Margin0.80.8382
Sufficiently Down
Slightly volatile
Pretax Profit Margin0.580.3907
Way Up
Pretty Stable
Return On Assets0.00440.0047
Notably Down
Slightly volatile
Return On Equity0.140.1674
Fairly Down
Very volatile
For Interactive Brokers profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Interactive Brokers to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Interactive Brokers Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Interactive Brokers's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Interactive Brokers Group over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Interactive Brokers' 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 Interactive Brokers. If investors know Interactive 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 Interactive Brokers 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
0.13
Dividend Share
0.4
Earnings Share
2.837
Revenue Per Share
42.109
Quarterly Revenue Growth
0.19
The market value of Interactive Brokers is measured differently than its book value, which is the value of Interactive that is recorded on the company's balance sheet. Investors also form their own opinion of Interactive Brokers' value that differs from its market value or its book value, called intrinsic value, which is Interactive Brokers' 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 Interactive Brokers' market value can be influenced by many factors that don't directly affect Interactive Brokers' 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 Interactive Brokers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Interactive Brokers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Interactive Brokers' 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.

Interactive Brokers Current Valuation vs. Current Ratio Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Interactive Brokers's current stock value. Our valuation model uses many indicators to compare Interactive Brokers value to that of its competitors to determine the firm's financial worth.
Interactive Brokers Group is rated third overall in current ratio category among related companies. It is considered the number one company in current valuation category among related companies reporting about  7,481,063,224  of Current Valuation per Current Ratio. At this time, Interactive Brokers' Current Ratio is relatively stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Interactive Brokers by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Interactive Brokers' 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 Interactive Brokers' earnings, one of the primary drivers of an investment's value.

Interactive Current Valuation vs. Current Ratio

Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

Interactive Brokers

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
1.10 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Interactive Brokers

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
8.23 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Interactive Current Valuation vs Competition

Interactive Brokers Group is considered the number one company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 3.8 Billion. Interactive Brokers totals roughly 8.23 Billion in current valuation claiming about 216% of equities under Financials industry.

Interactive Brokers Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Interactive Brokers, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Interactive Brokers will eventually generate negative long term returns. The profitability progress is the general direction of Interactive Brokers' change in net profit over the period of time. It can combine multiple indicators of Interactive Brokers, 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 IncomeM11.8 M
Operating Income6.6 B6.3 B
Income Before Tax3.1 B3.2 B
Total Other Income Expense Net-3.5 B-3.7 B
Net Income600 M630 M
Income Tax Expense257 M269.9 M
Net Income Applicable To Common Shares342 M359.1 M
Net Income From Continuing Ops2.8 B1.6 B
Net Interest Income-3.4 B-3.3 B
Interest Income1.6 B1.3 B
Change To Netincome-14.9 B-14.1 B
Net Income Per E B T 0.20  0.19 

Interactive Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Interactive Brokers. 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 Interactive Brokers 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 Interactive Brokers' important profitability drivers and their relationship over time.

Use Interactive Brokers 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 Interactive Brokers 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 Interactive Brokers will appreciate offsetting losses from the drop in the long position's value.

Interactive Brokers Pair Trading

Interactive Brokers Group Pair Trading Analysis

The ability to find closely correlated positions to Interactive Brokers could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Interactive Brokers 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 Interactive Brokers - 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 Interactive Brokers Group to buy it.
The correlation of Interactive Brokers 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 Interactive Brokers moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Interactive Brokers 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 Interactive Brokers 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 Interactive Brokers position

In addition to having Interactive Brokers 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 Cash Cows Thematic Idea Now

Cash Cows
Cash Cows Theme
Entities with stable and reliable earnings or profits, which allows them to pay consistent dividends to their shareholders. The Cash Cows theme has 25 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 Cash Cows Theme or any other thematic opportunities.
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When determining whether Interactive Brokers is a strong investment it is important to analyze Interactive Brokers' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Interactive Brokers' future performance. For an informed investment choice regarding Interactive Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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To fully project Interactive Brokers' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Interactive Brokers 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 Interactive Brokers' income statement, its balance sheet, and the statement of cash flows.
Potential Interactive Brokers investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Interactive Brokers investors may work on each financial statement separately, they are all related. The changes in Interactive Brokers's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Interactive Brokers'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.