Aarti Industries Return On Asset vs. Total Debt
| AARTIIND | 451.35 13.45 3.07% |
For Aarti Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Aarti Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Aarti Industries Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Aarti Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Aarti Industries Limited over time as well as its relative position and ranking within its peers.
Aarti |
Aarti Industries Total Debt vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Aarti Industries's current stock value. Our valuation model uses many indicators to compare Aarti Industries value to that of its competitors to determine the firm's financial worth. Aarti Industries Limited is number one stock in return on asset category among its peers. It also is the top company in total debt category among its peers making up about 781,250,602,410 of Total Debt per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Aarti Industries by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Aarti Industries' 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.Aarti Total Debt vs. Return On Asset
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.
Aarti Industries |
| = | 0.0415 |
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.
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.
Aarti Industries |
| = | 32.42 B |
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.
Aarti Total Debt vs Competition
Aarti Industries Limited is the top company in total debt category among its peers. Total debt of Materials industry is presently estimated at about 42.25 Billion. Aarti Industries totals roughly 32.42 Billion in total debt claiming about 77% of all equities under Materials industry.
Aarti Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Aarti Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Aarti Industries will eventually generate negative long term returns. The profitability progress is the general direction of Aarti Industries' change in net profit over the period of time. It can combine multiple indicators of Aarti Industries, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 51.1 B | 53.6 B | |
| Operating Income | 19.7 B | 20.6 B | |
| Income Before Tax | 4 B | 3.9 B | |
| Total Other Income Expense Net | -15.7 B | -14.9 B | |
| Net Income | 4 B | 3.8 B | |
| Income Tax Expense | -210.5 M | -200 M | |
| Net Income From Continuing Ops | 4.2 B | 5.2 B | |
| Net Income Applicable To Common Shares | 6.3 B | 5.1 B | |
| Interest Income | 70.9 M | 67.4 M | |
| Net Interest Income | -2.1 B | -2.2 B | |
| Change To Netincome | 1.3 B | 943.1 M |
Aarti Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Aarti Industries. 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 Aarti Industries 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 Aarti Industries' important profitability drivers and their relationship over time.
Use Aarti Industries 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 Aarti Industries 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 Aarti Industries will appreciate offsetting losses from the drop in the long position's value.Aarti Industries Pair Trading
Aarti Industries Limited Pair Trading Analysis
The ability to find closely correlated positions to Aarti Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aarti Industries 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 Aarti Industries - 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 Aarti Industries Limited to buy it.
The correlation of Aarti Industries 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 Aarti Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aarti Industries 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 Aarti Industries 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 Aarti Industries position
In addition to having Aarti Industries 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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Other Information on Investing in Aarti Stock
To fully project Aarti Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Aarti Industries 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 Aarti Industries' income statement, its balance sheet, and the statement of cash flows.