SK Telecom Total Debt vs. Return On Equity
| 017670 Stock | 57,200 900.00 1.60% |
For SK Telecom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SK Telecom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SK Telecom Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SK Telecom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SK Telecom Co over time as well as its relative position and ranking within its peers.
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SK Telecom Return On Equity vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SK Telecom's current stock value. Our valuation model uses many indicators to compare SK Telecom value to that of its competitors to determine the firm's financial worth. SK Telecom Co is the top company in total debt category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Total Debt to Return On Equity for SK Telecom Co is about Huge . Comparative valuation analysis is a catch-all model that can be used if you cannot value SK Telecom by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for SK Telecom's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.017670 Total Debt vs. Competition
SK Telecom Co is the top company in total debt category among its peers. Total debt of Communication Services industry is presently estimated at about 8.68 Trillion. SK Telecom totals roughly 7.39 Trillion in total debt claiming about 85% of stocks in Communication Services industry.
017670 Return On Equity vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
SK Telecom |
| = | 7.39 T |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
SK Telecom |
| = | 0.0774 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
017670 Return On Equity Comparison
SK Telecom is currently under evaluation in return on equity category among its peers.
017670 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SK Telecom. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of SK Telecom position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the SK Telecom's important profitability drivers and their relationship over time.
Use SK Telecom in pair-trading
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 SK Telecom 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 SK Telecom will appreciate offsetting losses from the drop in the long position's value.SK Telecom Pair Trading
SK Telecom Co Pair Trading Analysis
The ability to find closely correlated positions to SK Telecom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SK Telecom 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 SK Telecom - 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 SK Telecom Co to buy it.
The correlation of SK Telecom 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 SK Telecom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SK Telecom 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 SK Telecom 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.Use Investing Themes to Complement your SK Telecom position
In addition to having SK Telecom in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Shipping Containers Thematic Idea Now
Shipping Containers
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipping Containers theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Shipping Containers Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in 017670 Stock
When determining whether SK Telecom is a strong investment it is important to analyze SK Telecom'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 SK Telecom's future performance. For an informed investment choice regarding 017670 Stock, refer to the following important reports:Check out Trending Equities. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project SK Telecom's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SK Telecom at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include SK Telecom's income statement, its balance sheet, and the statement of cash flows.