Archer Daniels Total Debt vs. EBITDA
| ADM Stock | 48.44 0.28 0.58% |
For Archer Daniels profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Archer Daniels to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Archer Daniels Midland utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Archer Daniels's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Archer Daniels Midland over time as well as its relative position and ranking within its peers.
Archer |
Archer Daniels Midland EBITDA vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Archer Daniels's current stock value. Our valuation model uses many indicators to compare Archer Daniels value to that of its competitors to determine the firm's financial worth. Archer Daniels Midland is rated fourth in total debt category among its peers. It also is rated fourth in ebitda category among its peers totaling about 0.76 of EBITDA per Total Debt. The ratio of Total Debt to EBITDA for Archer Daniels Midland is roughly 1.31 . 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 Archer Daniels' earnings, one of the primary drivers of an investment's value.Archer Total Debt vs. Competition
Archer Daniels Midland is rated fourth in total debt category among its peers. Total debt of Farm Products industry is presently estimated at about 1.7 Trillion. Archer Daniels maintains roughly 8.68 Billion in total debt contributing less than 1% to equities under Farm Products industry.
Archer EBITDA 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.
Archer Daniels |
| = | 8.68 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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Archer Daniels |
| = | 6.63 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Archer EBITDA Comparison
Archer Daniels is rated third in ebitda category among its peers.
Archer Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Archer Daniels. 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 Archer Daniels 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 Archer Daniels' important profitability drivers and their relationship over time.
Use Archer Daniels 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 Archer Daniels 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 Archer Daniels will appreciate offsetting losses from the drop in the long position's value.Archer Daniels Pair Trading
Archer Daniels Midland Pair Trading Analysis
The ability to find closely correlated positions to Archer Daniels could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Archer Daniels 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 Archer Daniels - 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 Archer Daniels Midland to buy it.
The correlation of Archer Daniels 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 Archer Daniels moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Archer Daniels Midland 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 Archer Daniels 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 Archer Daniels position
In addition to having Archer Daniels 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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Toys
Companies producing and distributing toys and different gaming products for kids. The Toys theme has 45 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 Toys Theme or any other thematic opportunities.
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Additional Tools for Archer Stock Analysis
When running Archer Daniels' price analysis, check to measure Archer Daniels' 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 Archer Daniels is operating at the current time. Most of Archer Daniels' value examination focuses on studying past and present price action to predict the probability of Archer Daniels' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Archer Daniels' price. Additionally, you may evaluate how the addition of Archer Daniels to your portfolios can decrease your overall portfolio volatility.