Air Canada Stock Retained Earnings
| AC Stock | CAD 24.68 0.01 0.04% |
Air Canada fundamentals help investors to digest information that contributes to Air Canada's financial success or failures. It also enables traders to predict the movement of Air Stock. The fundamental analysis module provides a way to measure Air Canada's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Air Canada stock.
| Last Reported | Projected for Next Year | ||
| Retained Earnings | -2 B | -2.1 B |
Air | Retained Earnings |
Air Canada Company Retained Earnings Analysis
Air Canada's 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.
More About Retained Earnings | All Equity Analysis
Retained Earnings | = | Beginning RE + Income | - | Dividends |
Current Air Canada Retained Earnings | (2.02 B) |
Most of Air Canada's fundamental indicators, such as Retained Earnings, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Air Canada is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Air Retained Earnings Driver Correlations
Understanding the fundamental principles of building solid financial models for Air Canada is extremely important. It helps to project a fair market value of Air Stock properly, considering its historical fundamentals such as Retained Earnings. Since Air Canada's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Air Canada's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Air Canada's interrelated accounts and indicators.
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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.
| Competition |
Based on the latest financial disclosure, Air Canada has a Retained Earnings of (2.02 Billion). This is 119.55% lower than that of the Passenger Airlines sector and significantly lower than that of the Industrials industry. The retained earnings for all Canada stocks is 121.69% higher than that of the company.
Air Retained Earnings Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Air Canada's direct or indirect competition against its Retained Earnings to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Air Canada could also be used in its relative valuation, which is a method of valuing Air Canada by comparing valuation metrics of similar companies.Air Canada is currently under evaluation in retained earnings category among its peers.
Fund Asset Allocation for Air Canada
The fund invests 56.18% of asset under management in tradable equity instruments, with the rest of investments concentrated in bonds (40.66%) , cash (2.79%) and various exotic instruments.Asset allocation divides Air Canada's investment portfolio among different asset categories to balance risk and reward by investing in a diversified mix of instruments that align with the investor's goals, risk tolerance, and time horizon. Mutual funds, which pool money from multiple investors to buy a diversified portfolio of securities, use asset allocation strategies to manage the risk and return of their portfolios.
Mutual funds allocate their assets by investing in a diversified portfolio of securities, such as stocks, bonds, cryptocurrencies and cash. The specific mix of these securities is determined by the fund's investment objective and strategy. For example, a stock mutual fund may invest primarily in equities, while a bond mutual fund may invest mainly in fixed-income securities. The fund's manager, responsible for making investment decisions, will buy and sell securities in the fund's portfolio as market conditions and the fund's objectives change.
Air Fundamentals
About Air Canada Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Air Canada's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Air Canada using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Air Canada based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Air Canada
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 Air Canada 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 Air Canada will appreciate offsetting losses from the drop in the long position's value.Moving together with Air Stock
| 0.92 | RY-PS | Royal Bank Earnings Call This Week | PairCorr |
| 0.77 | RY | Royal Bank Earnings Call This Week | PairCorr |
| 0.9 | RY-PM | Royal Bank Earnings Call This Week | PairCorr |
| 0.87 | TD-PFI | Toronto Dominion Bank | PairCorr |
Moving against Air Stock
The ability to find closely correlated positions to Air Canada could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Air Canada 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 Air Canada - 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 Air Canada to buy it.
The correlation of Air Canada 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 Air Canada moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Air Canada 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 Air Canada 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.Other Information on Investing in Air Stock
Air Canada financial ratios help investors to determine whether Air Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Air with respect to the benefits of owning Air Canada security.