Brenntag Return On Equity vs. Total Debt
Considering the key profitability indicators obtained from Brenntag's historical financial statements, Brenntag AG ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Brenntag's ability to earn profits and add value for shareholders.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
Please note, there is a significant difference between Brenntag's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brenntag is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brenntag's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
For Brenntag profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brenntag to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brenntag AG ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brenntag's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brenntag AG ADR over time as well as its relative position and ranking within its peers.
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Brenntag AG ADR Total Debt vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Brenntag's current stock value. Our valuation model uses many indicators to compare Brenntag value to that of its competitors to determine the firm's financial worth. Brenntag AG ADR is number one stock in return on equity category among its peers. It also is the top company in total debt category among its peers making up about 8,303,092,784 of Total Debt per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brenntag by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brenntag's Pink Sheet. 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.Brenntag Total Debt 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.
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| = | 0.19 |
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.
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.
Brenntag |
| = | 1.61 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.
Brenntag Total Debt vs Competition
Brenntag AG ADR is the top company in total debt category among its peers. Total debt of Specialty Chemicals industry is currently estimated at about 98.55 Billion. Brenntag claims roughly 1.61 Billion in total debt contributing just under 2% to equities listed under Specialty Chemicals industry.
Brenntag Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Brenntag, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brenntag will eventually generate negative long term returns. The profitability progress is the general direction of Brenntag's change in net profit over the period of time. It can combine multiple indicators of Brenntag, 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.
Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally. Brenntag SE was founded in 1874 and is based in Essen, Germany. Brenntag operates under Specialty Chemicals classification in the United States and is traded on OTC Exchange. It employs 17221 people.
Brenntag Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Brenntag. 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 Brenntag 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 Brenntag's important profitability drivers and their relationship over time.
Use Brenntag 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 Brenntag 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 Brenntag will appreciate offsetting losses from the drop in the long position's value.Brenntag Pair Trading
Brenntag AG ADR Pair Trading Analysis
The ability to find closely correlated positions to Brenntag could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brenntag 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 Brenntag - 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 Brenntag AG ADR to buy it.
The correlation of Brenntag 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 Brenntag moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brenntag AG ADR 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 Brenntag 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 Brenntag position
In addition to having Brenntag 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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Additional Tools for Brenntag Pink Sheet Analysis
When running Brenntag's price analysis, check to measure Brenntag's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brenntag is operating at the current time. Most of Brenntag's value examination focuses on studying past and present price action to predict the probability of Brenntag's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brenntag's price. Additionally, you may evaluate how the addition of Brenntag to your portfolios can decrease your overall portfolio volatility.