Asian Paints Cash And Equivalents vs. Return On Equity
| ASIANPAINT | 2,480 21.55 0.88% |
Cash And Equivalents | First Reported 2010-12-31 | Previous Quarter 671.4 M | Current Value 537.1 M | Quarterly Volatility 134.8 M |
For Asian Paints profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Asian Paints to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Asian Paints Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Asian Paints's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Asian Paints Limited over time as well as its relative position and ranking within its peers.
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Asian Paints Limited Return On Equity vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Asian Paints's current stock value. Our valuation model uses many indicators to compare Asian Paints value to that of its competitors to determine the firm's financial worth. Asian Paints Limited is number one stock in cash and equivalents category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Cash And Equivalents to Return On Equity for Asian Paints Limited is about 2,260,162,602 . At present, Asian Paints' Cash And Equivalents is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Asian Paints by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Asian Paints' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Asian Return On Equity vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Asian Paints |
| = | 583.8 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
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.
Asian Paints |
| = | 0.26 |
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.
Asian Return On Equity Comparison
Asian Paints is currently under evaluation in return on equity category among its peers.
Asian Paints Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Asian Paints, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Asian Paints will eventually generate negative long term returns. The profitability progress is the general direction of Asian Paints' change in net profit over the period of time. It can combine multiple indicators of Asian Paints, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 47 B | 49.4 B | |
| Operating Income | 112.2 B | 117.8 B | |
| Income Before Tax | 73.5 B | 77.2 B | |
| Total Other Income Expense Net | -38.7 B | -36.8 B | |
| Net Income | 54.6 B | 57.3 B | |
| Income Tax Expense | 17.9 B | 18.8 B | |
| Net Income From Continuing Ops | 55.6 B | 29.6 B | |
| Net Income Applicable To Common Shares | 47.2 B | 25.8 B | |
| Interest Income | 1.7 B | 1.2 B | |
| Net Interest Income | -2.1 B | -1.9 B | |
| Change To Netincome | -587 M | -616.3 M |
Asian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Asian Paints. 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 Asian Paints 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 Asian Paints' important profitability drivers and their relationship over time.
Use Asian Paints 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 Asian Paints 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 Asian Paints will appreciate offsetting losses from the drop in the long position's value.Asian Paints Pair Trading
Asian Paints Limited Pair Trading Analysis
The ability to find closely correlated positions to Asian Paints could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Asian Paints 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 Asian Paints - 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 Asian Paints Limited to buy it.
The correlation of Asian Paints 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 Asian Paints moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Asian Paints 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 Asian Paints 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 Asian Paints position
In addition to having Asian Paints 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?
Run Small Growth Funds Thematic Idea Now
Small Growth Funds
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 46 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 Small Growth Funds Theme or any other thematic opportunities.
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Other Information on Investing in Asian Stock
To fully project Asian Paints' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Asian Paints Limited 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 Asian Paints' income statement, its balance sheet, and the statement of cash flows.