Bank Mandiri Return On Asset vs. Operating Margin
| BMRI Stock | IDR 6,150 300.00 4.65% |
For Bank Mandiri profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bank Mandiri to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bank Mandiri Persero utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bank Mandiri's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bank Mandiri Persero over time as well as its relative position and ranking within its peers.
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Bank Mandiri Persero Operating Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Bank Mandiri's current stock value. Our valuation model uses many indicators to compare Bank Mandiri value to that of its competitors to determine the firm's financial worth. Bank Mandiri Persero is rated fifth in return on asset category among its peers. It is rated fourth in operating margin category among its peers reporting about 21.24 of Operating Margin per Return On Asset. 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 Bank Mandiri's earnings, one of the primary drivers of an investment's value.Bank Operating Margin vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Bank Mandiri |
| = | 0.0242 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Bank Mandiri |
| = | 0.51 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Bank Operating Margin Comparison
Bank Mandiri is currently under evaluation in operating margin category among its peers.
Bank Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Bank Mandiri. 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 Bank Mandiri 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 Bank Mandiri's important profitability drivers and their relationship over time.
Use Bank Mandiri 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 Bank Mandiri 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 Bank Mandiri will appreciate offsetting losses from the drop in the long position's value.Bank Mandiri Pair Trading
Bank Mandiri Persero Pair Trading Analysis
The ability to find closely correlated positions to Bank Mandiri could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank Mandiri 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 Bank Mandiri - 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 Bank Mandiri Persero to buy it.
The correlation of Bank Mandiri 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 Bank Mandiri moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank Mandiri Persero 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 Bank Mandiri 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 Bank Mandiri position
In addition to having Bank Mandiri 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 Government Funds Thematic Idea Now
Government Funds
Funds or Etfs that invest in fixed income securities issued by national government to finance government spending or to facilitate Federal Reserve monetary policies. The Government Funds theme has 39 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 Government Funds Theme or any other thematic opportunities.
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Other Information on Investing in Bank Stock
To fully project Bank Mandiri's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bank Mandiri Persero 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 Bank Mandiri's income statement, its balance sheet, and the statement of cash flows.