ABSA Bank Return On Asset vs. Net Income
| ABSP Stock | 86,800 300.00 0.35% |
For ABSA Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ABSA Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ABSA Bank Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ABSA Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ABSA Bank Limited over time as well as its relative position and ranking within its peers.
ABSA |
ABSA Bank Limited Net Income vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ABSA Bank's current stock value. Our valuation model uses many indicators to compare ABSA Bank value to that of its competitors to determine the firm's financial worth. ABSA Bank Limited is number one stock in return on asset category among its peers. It also is number one stock in net income category among its peers making up about 1,295,454,545,455 of Net Income per Return On Asset. 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 ABSA Bank's earnings, one of the primary drivers of an investment's value.ABSA Net Income 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.
ABSA Bank |
| = | 0.0088 |
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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
ABSA Bank |
| = | 11.4 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
ABSA Net Income Comparison
ABSA Bank is currently under evaluation in net income category among its peers.
ABSA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ABSA Bank. 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 ABSA Bank 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 ABSA Bank's important profitability drivers and their relationship over time.
Use ABSA Bank 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 ABSA Bank 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 ABSA Bank will appreciate offsetting losses from the drop in the long position's value.ABSA Bank Pair Trading
ABSA Bank Limited Pair Trading Analysis
The ability to find closely correlated positions to ABSA Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ABSA Bank 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 ABSA Bank - 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 ABSA Bank Limited to buy it.
The correlation of ABSA Bank 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 ABSA Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ABSA Bank Limited 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 ABSA Bank 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 ABSA Bank position
In addition to having ABSA Bank 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 ABSA Stock Analysis
When running ABSA Bank's price analysis, check to measure ABSA Bank'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 ABSA Bank is operating at the current time. Most of ABSA Bank's value examination focuses on studying past and present price action to predict the probability of ABSA Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ABSA Bank's price. Additionally, you may evaluate how the addition of ABSA Bank to your portfolios can decrease your overall portfolio volatility.