American Cost Of Revenue vs Operating Income Analysis

AIG Stock  USD 74.53  0.10  0.13%   
American International financial indicator trend analysis is way more than just evaluating American International prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether American International is a good investment. Please check the relationship between American International Cost Of Revenue and its Operating Income accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American International Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.

Cost Of Revenue vs Operating Income

Cost Of Revenue vs Operating Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of American International Cost Of Revenue account and Operating Income. At this time, the significance of the direction appears to have significant contrarian relationship.
The correlation between American International's Cost Of Revenue and Operating Income is -0.27. Overlapping area represents the amount of variation of Cost Of Revenue that can explain the historical movement of Operating Income in the same time period over historical financial statements of American International Group, assuming nothing else is changed. The correlation between historical values of American International's Cost Of Revenue and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Cost Of Revenue of American International Group are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Cost Of Revenue i.e., American International's Cost Of Revenue and Operating Income go up and down completely randomly.

Correlation Coefficient

-0.27
Relationship DirectionNegative 
Relationship StrengthInsignificant

Cost Of Revenue

Cost of Revenue is found on American International income statement and represents the costs associated with goods and services American International provides. Indirect cost, such as salaries, is not included. In other words, cost of revenue is the total cost incurred to obtain a sale. It is more than the traditional cost of goods sold, since it includes specific selling and marketing activities.

Operating Income

Operating Income is the amount of profit realized from American International operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of American International Group is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.
Most indicators from American International's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into American International current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American International Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.
The current Selling General Administrative is estimated to decrease to about 8.2 B. The current Discontinued Operations is estimated to decrease to about (1.2 M)
 2021 2022 2023 2024 (projected)
Total Revenue51.9B56.5B47.3B52.5B
Interest Expense1.3B1.1B1.1B1.8B

American International fundamental ratios Correlations

0.630.650.60.530.210.60.320.510.330.220.510.350.51-0.020.560.280.190.36-0.96-0.110.280.710.680.950.68
0.630.761.0-0.110.040.850.30.850.310.510.580.490.51-0.010.160.00.53-0.22-0.71-0.05-0.10.220.010.50.01
0.650.760.760.160.360.940.40.940.40.690.690.120.480.120.26-0.180.8-0.34-0.8-0.17-0.270.170.350.580.35
0.61.00.76-0.140.040.850.30.860.320.510.560.470.510.010.14-0.030.55-0.25-0.69-0.06-0.130.18-0.020.48-0.02
0.53-0.110.16-0.140.540.070.49-0.040.5-0.01-0.17-0.290.210.050.56-0.120.00.57-0.44-0.170.10.440.550.70.54
0.210.040.360.040.540.350.810.30.80.41-0.27-0.80.40.070.41-0.80.48-0.14-0.3-0.16-0.49-0.190.230.370.24
0.60.850.940.850.070.350.450.980.490.750.630.110.430.070.08-0.260.83-0.36-0.73-0.13-0.340.060.230.50.23
0.320.30.40.30.490.810.450.40.980.61-0.17-0.50.49-0.270.49-0.650.43-0.03-0.40.18-0.340.020.120.510.12
0.510.850.940.86-0.040.30.980.40.420.740.620.150.450.10.06-0.270.85-0.47-0.67-0.14-0.40.00.120.40.12
0.330.310.40.320.50.80.490.980.420.64-0.15-0.50.4-0.30.36-0.660.460.0-0.380.19-0.340.010.130.490.13
0.220.510.690.51-0.010.410.750.610.740.640.52-0.190.1-0.41-0.07-0.450.76-0.3-0.370.39-0.21-0.040.120.230.12
0.510.580.690.56-0.17-0.270.63-0.170.62-0.150.520.53-0.04-0.16-0.130.390.42-0.06-0.570.160.320.390.410.320.41
0.350.490.120.47-0.29-0.80.11-0.50.15-0.5-0.190.530.05-0.04-0.040.8-0.240.19-0.270.050.490.47-0.040.17-0.05
0.510.510.480.510.210.40.430.490.450.40.1-0.040.050.210.74-0.130.25-0.15-0.61-0.31-0.330.090.090.520.09
-0.02-0.010.120.010.050.070.07-0.270.1-0.3-0.41-0.16-0.040.210.04-0.080.28-0.33-0.02-0.98-0.44-0.35-0.08-0.09-0.08
0.560.160.260.140.560.410.080.490.060.36-0.07-0.13-0.040.740.040.05-0.080.27-0.59-0.110.090.450.350.710.35
0.280.0-0.18-0.03-0.12-0.8-0.26-0.65-0.27-0.66-0.450.390.8-0.13-0.080.05-0.560.46-0.160.10.720.630.330.150.33
0.190.530.80.550.00.480.830.430.850.460.760.42-0.240.250.28-0.08-0.56-0.57-0.38-0.29-0.56-0.320.020.140.03
0.36-0.22-0.34-0.250.57-0.14-0.36-0.03-0.470.0-0.3-0.060.19-0.15-0.330.270.46-0.57-0.160.230.710.660.450.430.44
-0.96-0.71-0.8-0.69-0.44-0.3-0.73-0.4-0.67-0.38-0.37-0.57-0.27-0.61-0.02-0.59-0.16-0.38-0.160.13-0.13-0.59-0.64-0.92-0.64
-0.11-0.05-0.17-0.06-0.17-0.16-0.130.18-0.140.190.390.160.05-0.31-0.98-0.110.1-0.290.230.130.440.28-0.01-0.03-0.01
0.28-0.1-0.27-0.130.1-0.49-0.34-0.34-0.4-0.34-0.210.320.49-0.33-0.440.090.72-0.560.71-0.130.440.70.380.250.38
0.710.220.170.180.44-0.190.060.020.00.01-0.040.390.470.09-0.350.450.63-0.320.66-0.590.280.70.640.710.64
0.680.010.35-0.020.550.230.230.120.120.130.120.41-0.040.09-0.080.350.330.020.45-0.64-0.010.380.640.671.0
0.950.50.580.480.70.370.50.510.40.490.230.320.170.52-0.090.710.150.140.43-0.92-0.030.250.710.670.67
0.680.010.35-0.020.540.240.230.120.120.130.120.41-0.050.09-0.080.350.330.030.44-0.64-0.010.380.641.00.67
Click cells to compare fundamentals

American International Account Relationship Matchups

American International fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets525.1B586.5B596.1B526.6B539.3B466.0B
Short Long Term Debt Total35.4B37.5B30.2B27.2B22.4B21.3B
Total Stockholder Equity65.7B66.4B66.0B40.0B45.4B56.3B
Net Debt32.5B34.7B28.0B25.1B20.2B19.2B
Retained Earnings23.1B15.5B23.8B33.0B37.5B28.1B
Other Assets(28.3B)(17.5B)(10.7B)449.5B454.0B476.7B
Common Stock Shares Outstanding889.5M869.3M864.9M787.9M725.2M502.6M
Liabilities And Stockholders Equity525.1B586.5B596.1B526.6B539.3B466.0B
Non Current Liabilities Total35.4B37.5B30.2B432.7B468.2B491.6B
Other Stockholder Equity32.4B32.1B30.2B23.8B16.6B18.3B
Total Liab35.4B37.5B30.2B484.4B488.0B366.7B
Total Current Liabilities41.9B6.1B4.8B51.7B19.8B18.8B
Property Plant And Equipment Net262.7B287.5B289.9B1.6B1.4B1.3B
Non Current Assets Total275.9B300.1B301.6B15.1B14.4B13.7B
Net Receivables10.3B11.3B12.4B13.2B10.6B16.6B
Other Current Assets39.4B45.6B37.8B(12.4B)40.4B38.4B
Total Current Assets277.4B303.9B305.2B62.0B70.9B90.2B
Accumulated Other Comprehensive Income5.0B13.5B6.7B(22.1B)(14.0B)(13.3B)
Short Term Debt1.5B1.9B68M1.5B250M237.5M
Intangible Assets12.4B10.7B11.4B16.3B12.5B7.9B
Non Currrent Assets Other(275.9B)(300.1B)(301.6B)(249.1B)(259.8B)(272.8B)
Other Current Liab40.4B4.2B4.7B4.7B19.5B18.6B
Accounts Payable78.3B77.7B79.0B30.4B34.9B24.0B
Cash2.9B2.8B2.2B2.0B2.2B2.0B
Cash And Short Term Investments267.2B292.5B292.8B240.6B251.1B197.0B
Short Term Investments264.3B289.7B290.6B238.5B248.9B195.0B
Other Liab317.0B342.3B357.9B324.9B373.7B354.4B
Long Term Debt35.4B80.6B70.9B57.6B22.1B21.0B
Treasury Stock(49.0B)(49.3B)(51.6B)(56.5B)(50.8B)(48.3B)
Good Will4.0B4.1B4.1B3.9B3.5B3.5B
Noncontrolling Interest In Consolidated Entity1.8B837M3.0B2.2B2.0B2.3B
Retained Earnings Total Equity23.1B15.5B23.8B33.0B38.0B20.5B
Deferred Long Term Liab430M281M307M889M1.0B1.1B

Pair Trading with American International

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 American International 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 American International will appreciate offsetting losses from the drop in the long position's value.

Moving together with American Stock

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Moving against American Stock

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The ability to find closely correlated positions to American International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American International 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 American International - 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 American International Group to buy it.
The correlation of American International 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 American International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American International 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 American International 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
When determining whether American International is a strong investment it is important to analyze American International's 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 American International's future performance. For an informed investment choice regarding American Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American International Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.
You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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Is American International'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 American International. If investors know American 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 American International 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
(0.84)
Dividend Share
1.4
Earnings Share
4.98
Revenue Per Share
64.882
Quarterly Revenue Growth
(0.13)
The market value of American International is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American International's value that differs from its market value or its book value, called intrinsic value, which is American International'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 American International's market value can be influenced by many factors that don't directly affect American International'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 American International's value and its price as these two are different measures arrived at by different means. Investors typically determine if American International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American International'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.