Shopify Capital Expenditures vs Free Cash Flow Analysis

SHOP Stock

CAD 145.99 2.50 1.68%

Shopify financial indicator trend analysis is much more than just breaking down Shopify prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Shopify is a good investment. Please check the relationship between Shopify Capital Expenditures and its Free Cash Flow accounts. Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.

Capital Expenditures vs Free Cash Flow

Capital Expenditures vs Free Cash Flow Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Shopify Capital Expenditures account and Free Cash Flow. At this time, the significance of the direction appears to have very week relationship.

The correlation between Shopify's Capital Expenditures and Free Cash Flow is 0.29. Overlapping area represents the amount of variation of Capital Expenditures that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of Shopify, assuming nothing else is changed. The correlation between historical values of Shopify's Capital Expenditures and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Capital Expenditures of Shopify are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Capital Expenditures i.e., Shopify's Capital Expenditures and Free Cash Flow go up and down completely randomly.

Correlation Coefficient

0.29

Relationship Direction	Positive
Relationship Strength	Very Weak

View All Relationships

Capital Expenditures

Capital Expenditures are funds used by Shopify to acquire physical assets such as property, industrial buildings or equipment. This type of outlay is used by management to increase the scope of Shopify operations. These expenditures can include everything from repairing an office equipment, building a brand new facility, or writing new software.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Most indicators from Shopify's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Shopify 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 World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.At this time, Shopify's Selling General Administrative is very stable compared to the past year. As of the 19th of November 2024, Tax Provision is likely to grow to about 55.6 M, while Issuance Of Capital Stock is likely to drop 0.00.

	2021	2023	2024 (projected)
Interest Expense	1.2M	1.3M	1.3M
Depreciation And Amortization	66.3M	70M	37.9M

Interest Expense Depreciation And Amortization

Shopify fundamental ratios Correlations

	Common Stock Shares Outstanding	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Other Liab	Net Tangible Assets	Property Plant And Equipment Net	Current Deferred Revenue	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Cash And Short Term Investments	Net Receivables	Good Will	Common Stock Total Equity	Short Term Investments	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross
Common Stock Shares Outstanding		0.67	0.65	0.39	0.66	0.68	0.57	0.67	0.61	0.62	-0.45	0.15	0.67	0.63	0.6	0.68	0.62	0.47	0.69	0.69	0.65	0.45	0.54	0.57	0.65	0.66
Total Assets	0.67		0.98	0.6	0.97	1.0	0.93	0.98	0.79	0.95	-0.55	0.33	0.92	0.85	0.95	0.91	0.94	0.63	0.97	0.92	0.98	0.68	0.72	0.8	0.98	0.86
Short Long Term Debt Total	0.65	0.98		0.55	0.97	0.97	0.91	0.93	0.81	0.96	-0.51	0.22	0.93	0.85	0.94	0.88	0.93	0.73	0.95	0.87	1.0	0.72	0.75	0.75	0.99	0.88
Other Current Liab	0.39	0.6	0.55		0.71	0.6	0.65	0.52	0.18	0.71	0.0	-0.23	0.33	0.24	0.67	0.33	0.8	0.13	0.67	0.36	0.53	0.8	-0.04	0.74	0.6	0.36
Total Current Liabilities	0.66	0.97	0.97	0.71		0.96	0.94	0.91	0.78	0.99	-0.39	0.12	0.88	0.74	0.97	0.81	0.98	0.69	0.97	0.83	0.97	0.82	0.66	0.77	0.99	0.87
Total Stockholder Equity	0.68	1.0	0.97	0.6	0.96		0.93	0.99	0.78	0.94	-0.57	0.36	0.91	0.86	0.94	0.92	0.93	0.6	0.97	0.93	0.97	0.66	0.71	0.81	0.98	0.85
Other Liab	0.57	0.93	0.91	0.65	0.94	0.93		0.89	0.66	0.96	-0.25	0.32	0.81	0.63	0.99	0.73	0.93	0.59	0.85	0.77	0.93	0.78	0.58	0.65	0.94	0.76
Net Tangible Assets	0.67	0.98	0.93	0.52	0.91	0.99	0.89		0.76	0.88	-0.66	0.47	0.9	0.9	0.9	0.95	0.86	0.54	0.94	0.96	0.94	0.55	0.72	0.81	0.94	0.82
Property Plant And Equipment Net	0.61	0.79	0.81	0.18	0.78	0.78	0.66	0.76		0.74	-0.49	0.2	0.93	0.76	0.72	0.81	0.66	0.89	0.78	0.81	0.82	0.46	0.96	0.4	0.81	0.96
Current Deferred Revenue	0.62	0.95	0.96	0.71	0.99	0.94	0.96	0.88	0.74		-0.29	0.1	0.86	0.68	0.98	0.76	0.99	0.7	0.93	0.78	0.96	0.87	0.62	0.73	0.98	0.84
Net Debt	-0.45	-0.55	-0.51	0.0	-0.39	-0.57	-0.25	-0.66	-0.49	-0.29		-0.52	-0.57	-0.88	-0.28	-0.81	-0.3	-0.16	-0.59	-0.75	-0.49	0.12	-0.57	-0.64	-0.45	-0.45
Retained Earnings	0.15	0.33	0.22	-0.23	0.12	0.36	0.32	0.47	0.2	0.1	-0.52		0.31	0.45	0.25	0.47	0.05	-0.1	0.16	0.47	0.27	-0.33	0.35	0.13	0.22	0.14
Accounts Payable	0.67	0.92	0.93	0.33	0.88	0.91	0.81	0.9	0.93	0.86	-0.57	0.31		0.88	0.85	0.93	0.8	0.81	0.89	0.94	0.93	0.56	0.9	0.59	0.92	0.97
Cash	0.63	0.85	0.85	0.24	0.74	0.86	0.63	0.9	0.76	0.68	-0.88	0.45	0.88		0.67	0.98	0.66	0.53	0.85	0.95	0.83	0.3	0.79	0.75	0.81	0.78
Non Current Assets Total	0.6	0.95	0.94	0.67	0.97	0.94	0.99	0.9	0.72	0.98	-0.28	0.25	0.85	0.67		0.76	0.96	0.65	0.89	0.79	0.96	0.8	0.62	0.68	0.97	0.81
Cash And Short Term Investments	0.68	0.91	0.88	0.33	0.81	0.92	0.73	0.95	0.81	0.76	-0.81	0.47	0.93	0.98	0.76		0.73	0.57	0.9	0.99	0.87	0.39	0.81	0.75	0.86	0.84
Net Receivables	0.62	0.94	0.93	0.8	0.98	0.93	0.93	0.86	0.66	0.99	-0.3	0.05	0.8	0.66	0.96	0.73		0.6	0.94	0.76	0.93	0.88	0.52	0.8	0.96	0.78
Good Will	0.47	0.63	0.73	0.13	0.69	0.6	0.59	0.54	0.89	0.7	-0.16	-0.1	0.81	0.53	0.65	0.57	0.6		0.61	0.58	0.73	0.6	0.85	0.18	0.72	0.87
Common Stock Total Equity	0.69	0.97	0.95	0.67	0.97	0.97	0.85	0.94	0.78	0.93	-0.59	0.16	0.89	0.85	0.89	0.9	0.94	0.61		0.9	0.94	0.71	0.67	0.87	0.95	0.85
Short Term Investments	0.69	0.92	0.87	0.36	0.83	0.93	0.77	0.96	0.81	0.78	-0.75	0.47	0.94	0.95	0.79	0.99	0.76	0.58	0.9		0.88	0.43	0.8	0.74	0.87	0.86
Non Current Liabilities Total	0.65	0.98	1.0	0.53	0.97	0.97	0.93	0.94	0.82	0.96	-0.49	0.27	0.93	0.83	0.96	0.87	0.93	0.73	0.94	0.88		0.72	0.76	0.72	1.0	0.88
Inventory	0.45	0.68	0.72	0.8	0.82	0.66	0.78	0.55	0.46	0.87	0.12	-0.33	0.56	0.3	0.8	0.39	0.88	0.6	0.71	0.43	0.72		0.28	0.55	0.76	0.6
Other Current Assets	0.54	0.72	0.75	-0.04	0.66	0.71	0.58	0.72	0.96	0.62	-0.57	0.35	0.9	0.79	0.62	0.81	0.52	0.85	0.67	0.8	0.76	0.28		0.3	0.73	0.89
Other Stockholder Equity	0.57	0.8	0.75	0.74	0.77	0.81	0.65	0.81	0.4	0.73	-0.64	0.13	0.59	0.75	0.68	0.75	0.8	0.18	0.87	0.74	0.72	0.55	0.3		0.74	0.51
Total Liab	0.65	0.98	0.99	0.6	0.99	0.98	0.94	0.94	0.81	0.98	-0.45	0.22	0.92	0.81	0.97	0.86	0.96	0.72	0.95	0.87	1.0	0.76	0.73	0.74		0.88
Property Plant And Equipment Gross	0.66	0.86	0.88	0.36	0.87	0.85	0.76	0.82	0.96	0.84	-0.45	0.14	0.97	0.78	0.81	0.84	0.78	0.87	0.85	0.86	0.88	0.6	0.89	0.51	0.88

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Shopify Account Relationship Matchups

Shopify fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Common Stock Shares Outstanding	957.7M	1.1B	1.1B	1.3B	1.3B	1.2B
Total Assets	3.5B	7.8B	13.3B	10.8B	11.3B	11.9B
Short Long Term Debt Total	151.7M	912.9M	1.2B	1.4B	1.2B	1.2B
Other Current Liab	69.4M	19.7M	13.5M	9.4M	215M	225.8M
Total Current Liabilities	316.4M	438.3M	702.7M	856.0M	898M	942.9M
Total Stockholder Equity	3.0B	6.4B	11.1B	8.2B	9.1B	9.5B
Other Liab	14.7M	21.0M	346.4M	283.8M	326.4M	342.7M
Net Tangible Assets	2.5B	6.0B	10.6B	6.0B	6.9B	7.3B
Property Plant And Equipment Net	246.2M	211.5M	301.9M	486.0M	147M	160.9M
Current Deferred Revenue	56.7M	107.8M	216.8M	295.9M	302M	317.1M
Net Debt	(498.2M)	(1.8B)	(1.3B)	(252.7M)	(263M)	(276.2M)
Retained Earnings	(304.2M)	15.3M	2.9B	(522.3M)	(390M)	(370.5M)
Accounts Payable	181.2M	300.8M	456.7M	532.6M	364M	203.9M
Cash	649.9M	2.7B	2.5B	1.6B	1.4B	979.1M
Non Current Assets Total	744.8M	885.1M	4.8B	4.7B	5.0B	5.3B
Cash And Short Term Investments	2.5B	6.4B	7.8B	5.1B	5.0B	3.0B
Net Receivables	240.7M	421.5M	668.0M	857.9M	1.2B	1.2B
Common Stock Total Equity	1.1B	2.2B	3.3B	6.1B	7.0B	7.4B
Short Term Investments	1.8B	3.7B	5.3B	3.4B	3.6B	2.1B
Liabilities And Stockholders Equity	3.5B	7.8B	13.3B	10.8B	11.3B	11.9B
Non Current Liabilities Total	157.4M	923.9M	1.5B	1.7B	1.3B	1.4B
Other Current Assets	48.8M	68.2M	103.3M	139.7M	20M	19M
Other Stockholder Equity	62.6M	261.4M	161.1M	30.2M	251M	263.6M
Total Liab	473.7M	1.4B	2.2B	2.5B	2.2B	2.3B
Property Plant And Equipment Gross	246.2M	211.5M	301.9M	486.0M	303M	176.5M
Total Current Assets	2.7B	6.9B	8.5B	6.1B	6.3B	3.4B
Accumulated Other Comprehensive Income	1.0M	8.8M	(6.0M)	(16.5M)	4M	4.2M
Short Term Debt	9.1M	10.1M	15.7M	18.2M	17M	17.9M
Intangible Assets	167.3M	135.7M	138.5M	390.1M	29M	27.6M
Common Stock	3.3B	6.1B	8.0B	8.7B	9.2B	9.7B
Property Plant Equipment	246.2M	211.5M	301.9M	486.0M	558.9M	586.8M
Capital Surpluse	62.6M	261.4M	161.1M	30.2M	34.7M	33.0M
Non Currrent Assets Other	87.9M	125.7M	(2.5M)	(74K)	(66.6K)	(63.3K)
Capital Lease Obligations	151.7M	154.9M	262.5M	483.3M	234M	184.5M
Cash And Equivalents	649.9M	2.7B	2.5B	1.6B	1.9B	1.3B
Net Invested Capital	3.0B	7.2B	12.0B	9.2B	10.0B	7.0B

Pair Trading with Shopify

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

Moving together with Shopify Stock

0.74	GOOG	Alphabet CDR	Pair Corr
0.8	AMZN	Amazon CDR	Pair Corr

The ability to find closely correlated positions to Shopify could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shopify 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 Shopify - 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 Shopify to buy it.

The correlation of Shopify 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 Shopify moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shopify 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 Shopify 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 Correlation Correlation Matching

When determining whether Shopify is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Shopify Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Shopify Stock. Highlighted below are key reports to facilitate an investment decision about Shopify Stock:

How To Invest In Shopify

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Is Shopify Stock a good investment?

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What is Shopify's Net Worth?

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Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.

You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Please note, there is a significant difference between Shopify's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shopify is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shopify'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.

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Shopify Capital Expenditures vs Free Cash Flow Analysis

Capital Expenditures vs Free Cash Flow

Capital Expenditures vs Free Cash Flow Correlation Analysis

Correlation Coefficient

Capital Expenditures

Free Cash Flow

Shopify fundamental ratios Correlations

Shopify Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Shopify fundamental ratios Accounts

Pair Trading with Shopify

Moving together with Shopify Stock

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Total Stockholder Equity	+ 1.0	Total Assets
Non Current Liabilities Total	+ 1.0	Short Long Term Debt Total
Total Liab	+ 1.0	Non Current Liabilities Total
Total Liab	+ 0.99	Short Long Term Debt Total
Current Deferred Revenue	+ 0.99	Total Current Liabilities
Total Liab	+ 0.99	Total Current Liabilities

Cash	- 0.88	Net Debt
Cash And Short Term Investments	- 0.81	Net Debt
Short Term Investments	- 0.75	Net Debt
Net Debt	- 0.66	Net Tangible Assets
Other Stockholder Equity	- 0.64	Net Debt
Common Stock Total Equity	- 0.59	Net Debt