Eros International Profitability Analysis
| EROSMEDIA | 14.74 0.36 2.50% |
Net Loss | First Reported 2012-06-30 | Previous Quarter 382 M | Current Value -524.3 M | Quarterly Volatility 2.2 B |
For Eros International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eros International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eros International Media utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eros International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eros International Media over time as well as its relative position and ranking within its peers.
Eros |
Eros International Media Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Eros International's current stock value. Our valuation model uses many indicators to compare Eros International value to that of its competitors to determine the firm's financial worth. Eros International Media is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in return on asset category among its peers . 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 Eros International's earnings, one of the primary drivers of an investment's value.Eros 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.
Eros International |
| = | -0.13 |
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.
Eros International |
| = | -0.0345 |
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.
Eros Return On Asset Comparison
Eros International is currently under evaluation in return on asset category among its peers.
Eros International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Eros International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eros International will eventually generate negative long term returns. The profitability progress is the general direction of Eros International's change in net profit over the period of time. It can combine multiple indicators of Eros International, 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 | 3.2 B | 3.3 B | |
| Operating Income | -1.1 B | -1 B | |
| Income Before Tax | -1.1 B | -1 B | |
| Total Other Income Expense Net | -19.6 M | -20.6 M | |
| Net Loss | -1.1 B | -1 B | |
| Income Tax Expense | 900 K | 855 K | |
| Net Loss | -1.1 B | -1 B | |
| Net Loss | -1 B | -996.6 M | |
| Interest Income | 653.9 M | 475.1 M | |
| Net Interest Income | -620.9 M | -652 M | |
| Change To Netincome | 1.1 B | 1 B |
Eros Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Eros International. 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 Eros International 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 Eros International's important profitability drivers and their relationship over time.
Use Eros International 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 Eros International 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 Eros International will appreciate offsetting losses from the drop in the long position's value.Eros International Pair Trading
Eros International Media Pair Trading Analysis
The ability to find closely correlated positions to Eros International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eros International 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 Eros International - 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 Eros International Media to buy it.
The correlation of Eros International 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 Eros International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eros International Media 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 Eros International 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 Eros International position
In addition to having Eros International 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 Real Estate Thematic Idea Now
Real Estate
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Real Estate theme has 61 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 Real Estate Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in Eros Stock
To fully project Eros International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Eros International Media 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 Eros International's income statement, its balance sheet, and the statement of cash flows.