Acer Incorporated Return On Equity vs. Debt To Equity
| AC5G Stock | EUR 4.60 0.00 0.00% |
For Acer Incorporated profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Acer Incorporated to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Acer Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Acer Incorporated's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Acer Incorporated over time as well as its relative position and ranking within its peers.
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Acer Incorporated Debt To Equity vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Acer Incorporated's current stock value. Our valuation model uses many indicators to compare Acer Incorporated value to that of its competitors to determine the firm's financial worth. Acer Incorporated is rated third in return on equity category among its peers. It also is rated third in debt to equity category among its peers fabricating about 77.64 of Debt To Equity per Return On Equity. 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 Acer Incorporated's earnings, one of the primary drivers of an investment's value.Acer Debt To Equity 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.
Acer Incorporated |
| = | 0.13 |
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.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Acer Incorporated |
| = | 10.00 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Acer Debt To Equity Comparison
Acer Incorporated is rated second in debt to equity category among its peers.
Acer Incorporated Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Acer Incorporated, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Acer Incorporated will eventually generate negative long term returns. The profitability progress is the general direction of Acer Incorporated's change in net profit over the period of time. It can combine multiple indicators of Acer Incorporated, 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.
Acer Incorporated researches, designs, markets, and services personal computers , information technology products, and tablet products in the United States, Mainland China, Taiwan, and internationally. Acer Incorporated was founded in 1976 and is headquartered in New Taipei City, Taiwan. ACER GDR is traded on Frankfurt Stock Exchange in Germany.
Acer Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Acer Incorporated. 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 Acer Incorporated 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 Acer Incorporated's important profitability drivers and their relationship over time.
Use Acer Incorporated 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 Acer Incorporated 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 Acer Incorporated will appreciate offsetting losses from the drop in the long position's value.Acer Incorporated Pair Trading
Acer Incorporated Pair Trading Analysis
The ability to find closely correlated positions to Acer Incorporated could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Acer Incorporated 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 Acer Incorporated - 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 Acer Incorporated to buy it.
The correlation of Acer Incorporated 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 Acer Incorporated moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Acer Incorporated 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 Acer Incorporated 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 Acer Incorporated position
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Other Information on Investing in Acer Stock
To fully project Acer Incorporated's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Acer Incorporated 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 Acer Incorporated's income statement, its balance sheet, and the statement of cash flows.