California Resources Return On Equity vs. Return On Asset
| CRC Stock | USD 59.16 0.69 1.18% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.25416854 | Current Value 0.36 | Quarterly Volatility 1.30046188 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.34 | 0.4995 |
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For California Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of California Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well California Resources Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between California Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of California Resources Corp over time as well as its relative position and ranking within its peers.
California |
California Resources' Revenue Breakdown by Earning Segment
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Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of California Resources. If investors know California will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about California Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.92) | Dividend Share 1.318 | Earnings Share 7.02 | Revenue Per Share 35.122 | Quarterly Revenue Growth 0.502 |
The market value of California Resources Corp is measured differently than its book value, which is the value of California that is recorded on the company's balance sheet. Investors also form their own opinion of California Resources' value that differs from its market value or its book value, called intrinsic value, which is California Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because California Resources' market value can be influenced by many factors that don't directly affect California Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between California Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if California Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, California Resources' 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.
California Resources Corp Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining California Resources's current stock value. Our valuation model uses many indicators to compare California Resources value to that of its competitors to determine the firm's financial worth. California Resources Corp is rated fifth in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about 0.22 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for California Resources Corp is roughly 4.62 . At present, California Resources' Return On Equity is projected to increase slightly based on the last few years of reporting. 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 California Resources' earnings, one of the primary drivers of an investment's value.California Return On Asset 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.
California Resources |
| = | 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.
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.
California Resources |
| = | 0.0414 |
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.
California Return On Asset Comparison
California Resources is currently under evaluation in return on asset category among its peers.
California Resources Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in California Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, California Resources will eventually generate negative long term returns. The profitability progress is the general direction of California Resources' change in net profit over the period of time. It can combine multiple indicators of California Resources, 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 | 74 M | 77.7 M | |
| Operating Income | 808 M | 848.4 M | |
| Income Before Tax | 748 M | 785.4 M | |
| Net Income | 564 M | 592.2 M | |
| Income Tax Expense | 184 M | 193.2 M | |
| Total Other Income Expense Net | -60 M | -63 M | |
| Interest Income | 48.6 M | 46.2 M | |
| Net Income Applicable To Common Shares | 602.6 M | 632.7 M | |
| Net Interest Income | -57 M | -59.9 M | |
| Net Income From Continuing Ops | 459 M | 553.3 M | |
| Non Operating Income Net Other | 2.3 M | 2.4 M | |
| Change To Netincome | 877.5 M | 921.3 M | |
| Net Income Per Share | 8.10 | 8.51 | |
| Income Quality | 1.16 | 1.60 | |
| Net Income Per E B T | 0.75 | 0.81 |
California Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on California Resources. 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 California Resources 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 California Resources' important profitability drivers and their relationship over time.
Use California Resources 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 California Resources 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 California Resources will appreciate offsetting losses from the drop in the long position's value.California Resources Pair Trading
California Resources Corp Pair Trading Analysis
The ability to find closely correlated positions to California Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace California Resources 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 California Resources - 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 California Resources Corp to buy it.
The correlation of California Resources 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 California Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if California Resources Corp 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 California Resources 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 California Resources position
In addition to having California Resources 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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To fully project California Resources' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of California Resources Corp 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 California Resources' income statement, its balance sheet, and the statement of cash flows.