Diageo PLC Total Debt vs. Return On Asset
| DGE Stock | 2,352 15.50 0.65% |
For Diageo PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Diageo PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Diageo PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Diageo PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Diageo PLC over time as well as its relative position and ranking within its peers.
Diageo |
Diageo PLC Return On Asset vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Diageo PLC's current stock value. Our valuation model uses many indicators to compare Diageo PLC value to that of its competitors to determine the firm's financial worth. Diageo PLC is rated as one of the top companies in total debt category among its peers. It also is one of the top stocks in return on asset category among its peers . The ratio of Total Debt to Return On Asset for Diageo PLC is about 224,289,156,627 . 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 Diageo PLC's earnings, one of the primary drivers of an investment's value.Diageo Total Debt vs. Competition
Diageo PLC is rated as one of the top companies in total debt category among its peers. Total debt of Consumer Staples industry is currently estimated at about 25.65 Billion. Diageo PLC totals roughly 18.62 Billion in total debt claiming about 73% of stocks in Consumer Staples industry.
Diageo Return On Asset 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.
Diageo PLC |
| = | 18.62 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.
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.
Diageo PLC |
| = | 0.083 |
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.
Diageo Return On Asset Comparison
Diageo PLC is currently under evaluation in return on asset category among its peers.
Diageo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Diageo PLC. 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 Diageo PLC 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 Diageo PLC's important profitability drivers and their relationship over time.
Use Diageo PLC 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 Diageo PLC 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 Diageo PLC will appreciate offsetting losses from the drop in the long position's value.Diageo PLC Pair Trading
Diageo PLC Pair Trading Analysis
The ability to find closely correlated positions to Diageo PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diageo PLC 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 Diageo PLC - 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 Diageo PLC to buy it.
The correlation of Diageo PLC 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 Diageo PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diageo PLC 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 Diageo PLC 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 Diageo PLC position
In addition to having Diageo PLC 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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Health Management
Major hospitals and healthcare providers. The Health Management theme has 40 constituents at this time.
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Other Information on Investing in Diageo Stock
To fully project Diageo PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Diageo PLC 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 Diageo PLC's income statement, its balance sheet, and the statement of cash flows.