Embotelladora Andina Return On Equity vs. Profit Margin
| AKO-B Stock | USD 17.69 0.24 1.38% |
For Embotelladora Andina profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Embotelladora Andina to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Embotelladora Andina SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Embotelladora Andina's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Embotelladora Andina SA over time as well as its relative position and ranking within its peers.
Embotelladora |
Embotelladora Andina Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Embotelladora Andina's current stock value. Our valuation model uses many indicators to compare Embotelladora Andina value to that of its competitors to determine the firm's financial worth. Embotelladora Andina SA is rated fourth in return on equity category among its peers. It is rated below average in profit margin category among its peers fabricating about 0.35 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Embotelladora Andina SA is roughly 2.90 . 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 Embotelladora Andina's earnings, one of the primary drivers of an investment's value.Embotelladora Profit Margin 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.
Embotelladora Andina |
| = | 0.2 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
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| = | 0.07 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Embotelladora Profit Margin Comparison
Embotelladora Andina is currently under evaluation in profit margin category among its peers.
Embotelladora Andina Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Embotelladora Andina, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Embotelladora Andina will eventually generate negative long term returns. The profitability progress is the general direction of Embotelladora Andina's change in net profit over the period of time. It can combine multiple indicators of Embotelladora Andina, 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.
Embotelladora Andina S.A., together with its subsidiaries, produces, markets, and distributes Coca-Cola soft drinks in Chile, Brazil, Argentina, and Paraguay. Embotelladora Andina S.A. was founded in 1946 and is headquartered in Santiago, Chile. Embotelladora Andina is traded on New York Stock Exchange in USA.
Embotelladora Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Embotelladora Andina. 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 Embotelladora Andina 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 Embotelladora Andina's important profitability drivers and their relationship over time.
Use Embotelladora Andina 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 Embotelladora Andina 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 Embotelladora Andina will appreciate offsetting losses from the drop in the long position's value.Embotelladora Andina Pair Trading
Embotelladora Andina SA Pair Trading Analysis
The ability to find closely correlated positions to Embotelladora Andina could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Embotelladora Andina 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 Embotelladora Andina - 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 Embotelladora Andina SA to buy it.
The correlation of Embotelladora Andina 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 Embotelladora Andina moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Embotelladora Andina 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 Embotelladora Andina 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 Embotelladora Andina position
In addition to having Embotelladora Andina 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 Embotelladora Stock
To fully project Embotelladora Andina's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Embotelladora Andina 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 Embotelladora Andina's income statement, its balance sheet, and the statement of cash flows.