LATAM Payout Ratio vs Interest Coverage Analysis
| LTM Stock | USD 26.86 0.85 3.07% |
LATAM Airlines financial indicator trend analysis is infinitely more than just investigating LATAM Airlines Group recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether LATAM Airlines Group is a good investment. Please check the relationship between LATAM Airlines Payout Ratio and its Interest Coverage accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LATAM Airlines Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
Payout Ratio vs Interest Coverage
Payout Ratio vs Interest Coverage Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of LATAM Airlines Group Payout Ratio account and Interest Coverage. At this time, the significance of the direction appears to have fragmental relationship.
The correlation between LATAM Airlines' Payout Ratio and Interest Coverage is 0.44. Overlapping area represents the amount of variation of Payout Ratio that can explain the historical movement of Interest Coverage in the same time period over historical financial statements of LATAM Airlines Group, assuming nothing else is changed. The correlation between historical values of LATAM Airlines' Payout Ratio and Interest Coverage is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Payout Ratio of LATAM Airlines Group are associated (or correlated) with its Interest Coverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Interest Coverage has no effect on the direction of Payout Ratio i.e., LATAM Airlines' Payout Ratio and Interest Coverage go up and down completely randomly.
Correlation Coefficient | 0.44 |
| Relationship Direction | Positive |
| Relationship Strength | Weak |
Payout Ratio
Payout Ratio is the proportion of LATAM Airlines Group earnings paid out as dividends to shareholders. Payout Ratio is typically expressed as a percentage but can be shown as dividends paid out as a proportion of cash flow. The payout ratio is used to determine the sustainability of LATAM Airlines Group dividend payments. A lower payout ratio is generally preferable to a higher payout ratio, with a ratio greater than 100% indicating LATAM Airlines Group is paying out more in dividends than it makes in net income.Interest Coverage
Most indicators from LATAM Airlines' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into LATAM Airlines Group 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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LATAM Airlines Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. As of the 22nd of November 2024, Sales General And Administrative To Revenue is likely to grow to 0.09, while Tax Provision is likely to drop about 11.7 M.
| 2021 | 2022 | 2023 | 2024 (projected) | Interest Expense | 748.0M | 911.8M | 682.9M | 790.2M | Depreciation And Amortization | 1.2B | 1.2B | 1.2B | 987.9M |
LATAM Airlines fundamental ratios Correlations
Click cells to compare fundamentals
LATAM Airlines Account Relationship Matchups
High Positive Relationship
High Negative Relationship
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Is Passenger Airlines space 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 LATAM Airlines. If investors know LATAM 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 LATAM Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of LATAM Airlines Group is measured differently than its book value, which is the value of LATAM that is recorded on the company's balance sheet. Investors also form their own opinion of LATAM Airlines' value that differs from its market value or its book value, called intrinsic value, which is LATAM Airlines' 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 LATAM Airlines' market value can be influenced by many factors that don't directly affect LATAM Airlines' 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 LATAM Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if LATAM Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LATAM Airlines' 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.