Rectron Return On Equity vs. Return On Asset
| 2302 Stock | TWD 18.40 0.35 1.87% |
For Rectron profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rectron to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rectron utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rectron's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rectron over time as well as its relative position and ranking within its peers.
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Rectron Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Rectron's current stock value. Our valuation model uses many indicators to compare Rectron value to that of its competitors to determine the firm's financial worth. Rectron is rated fourth in return on equity category among its peers. It also is rated fourth in return on asset category among its peers reporting about 0.44 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Rectron is roughly 2.27 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Rectron's earnings, one of the primary drivers of an investment's value.Rectron Return On Asset vs. Return On Equity
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.
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| = | 0.0947 |
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.0418 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Rectron Return On Asset Comparison
Rectron is currently under evaluation in return on asset category among its peers.
Rectron Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Rectron, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rectron will eventually generate negative long term returns. The profitability progress is the general direction of Rectron's change in net profit over the period of time. It can combine multiple indicators of Rectron, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Rectron Limited manufactures and sells discrete semiconductors in Taiwan and internationally. Rectron Limited was founded in 1976 and is based in New Taipei City, Taiwan. RECTRON operates under Semiconductor Equipment Materials classification in Taiwan and is traded on Taiwan Stock Exchange.
Rectron Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Rectron. 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 Rectron 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 Rectron's important profitability drivers and their relationship over time.
Use Rectron 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 Rectron 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 Rectron will appreciate offsetting losses from the drop in the long position's value.Rectron Pair Trading
Rectron Pair Trading Analysis
The ability to find closely correlated positions to Rectron could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rectron 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 Rectron - 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 Rectron to buy it.
The correlation of Rectron 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 Rectron moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rectron 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 Rectron 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 Rectron position
In addition to having Rectron 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?
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Additional Tools for Rectron Stock Analysis
When running Rectron's price analysis, check to measure Rectron's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rectron is operating at the current time. Most of Rectron's value examination focuses on studying past and present price action to predict the probability of Rectron's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rectron's price. Additionally, you may evaluate how the addition of Rectron to your portfolios can decrease your overall portfolio volatility.