Adaro Energy Gross Profit vs. Return On Equity
| ADRO Stock | IDR 2,080 680.00 24.64% |
For Adaro Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Adaro Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Adaro Energy Tbk utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Adaro Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Adaro Energy Tbk over time as well as its relative position and ranking within its peers.
Adaro |
Adaro Energy Tbk Return On Equity vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Adaro Energy's current stock value. Our valuation model uses many indicators to compare Adaro Energy value to that of its competitors to determine the firm's financial worth. Adaro Energy Tbk is number one stock in gross profit category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Gross Profit to Return On Equity for Adaro Energy Tbk is about 3,437,735,043 . 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 Adaro Energy's earnings, one of the primary drivers of an investment's value.Adaro Return On Equity vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Adaro Energy |
| = | 1.77 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
Adaro Energy |
| = | 0.51 |
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.
Adaro Return On Equity Comparison
Adaro Energy is currently under evaluation in return on equity category among its peers.
Adaro Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Adaro Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Adaro Energy will eventually generate negative long term returns. The profitability progress is the general direction of Adaro Energy's change in net profit over the period of time. It can combine multiple indicators of Adaro Energy, 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.
PT Adaro Energy Tbk, together with its subsidiaries, operates as an integrated coal mining and energy company in Indonesia. PT Adaro Energy Tbk was founded in 2004 and is headquartered in Jakarta, Indonesia. Adaro Energy operates under Thermal Coal classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 9550 people.
Adaro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Adaro Energy. 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 Adaro Energy 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 Adaro Energy's important profitability drivers and their relationship over time.
Use Adaro Energy 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 Adaro Energy 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 Adaro Energy will appreciate offsetting losses from the drop in the long position's value.Adaro Energy Pair Trading
Adaro Energy Tbk Pair Trading Analysis
The ability to find closely correlated positions to Adaro Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Adaro Energy 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 Adaro Energy - 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 Adaro Energy Tbk to buy it.
The correlation of Adaro Energy 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 Adaro Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Adaro Energy Tbk 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 Adaro Energy 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 Adaro Energy position
In addition to having Adaro Energy 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 Adaro Stock
To fully project Adaro Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Adaro Energy Tbk 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 Adaro Energy's income statement, its balance sheet, and the statement of cash flows.