BHP Group Total Debt vs. Revenue
| BHG Stock | 47,081 172.00 0.37% |
For BHP Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BHP Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BHP Group Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BHP Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BHP Group Limited over time as well as its relative position and ranking within its peers.
BHP |
BHP Group Limited Revenue vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BHP Group's current stock value. Our valuation model uses many indicators to compare BHP Group value to that of its competitors to determine the firm's financial worth. BHP Group Limited is the top company in total debt category among its peers. It also is the top company in revenue category among its peers totaling about 5.54 of Revenue per Total Debt. 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 BHP Group's earnings, one of the primary drivers of an investment's value.BHP Total Debt vs. Competition
BHP Group Limited is the top company in total debt category among its peers. Total debt of Other Industrial Metals & Mining industry is currently estimated at about 17.79 Billion. BHP Group totals roughly 11.75 Billion in total debt claiming about 66% of all equities under Other Industrial Metals & Mining industry.
BHP Revenue 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.
BHP Group |
| = | 11.75 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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
BHP Group |
| = | 65.1 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
BHP Revenue vs Competition
BHP Group Limited is the top company in revenue category among its peers. Market size based on revenue of Other Industrial Metals & Mining industry is currently estimated at about 328.57 Billion. BHP Group retains roughly 65.1 Billion in revenue claiming about 20% of all equities under Other Industrial Metals & Mining industry.
BHP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BHP Group. 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 BHP Group 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 BHP Group's important profitability drivers and their relationship over time.
Use BHP Group 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 BHP Group 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 BHP Group will appreciate offsetting losses from the drop in the long position's value.BHP Group Pair Trading
BHP Group Limited Pair Trading Analysis
The ability to find closely correlated positions to BHP Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BHP Group 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 BHP Group - 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 BHP Group Limited to buy it.
The correlation of BHP Group 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 BHP Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BHP Group 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 BHP Group 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 BHP Group position
In addition to having BHP Group 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 Office Supplies Thematic Idea Now
Office Supplies
Companies producing and selling office supplies, and accessories. The Office Supplies theme has 40 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 Office Supplies Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in BHP Stock
When determining whether BHP Group Limited is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if BHP Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Bhp Group Limited Stock. Highlighted below are key reports to facilitate an investment decision about Bhp Group Limited Stock:Check out Trending Equities. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
To fully project BHP Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BHP Group 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 BHP Group's income statement, its balance sheet, and the statement of cash flows.