Switch to:
CA Inc (NAS:CA)
Profitability Rank
7 (As of Mar. 2014)

CA Inc has the Profitability Rank of 7. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

• 1. Operating Margin
• 2. Piotroski F-Score
• 3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
• 4. Consistency of the profitability
• 5. Predictability Rank

CA Inc's operating margin for the quarter that ended in Mar. 2014 was 17.15%. As of today, CA Inc's Piotroski F-Score is 5.


Definition

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

CA Inc has the Profitability Rank of 7. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

•1. Operating Margin

Operating Margin - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

CA Inc's Operating Margin for the quarter that ended in Mar. 2014 is calculated as:

Operating Margin=Operating Income (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=190 / 1108
=17.15 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

•2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

CA Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

•3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

CA Inc operating margin has been in 5-year decline. The average rate of decline per year is -1.1%.

•4. Consistency of the profitability

•5. Predictability Rank


Related Terms

Financial Strength Rank, Operating Margin, Piotroski F-Score

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide