Godrej Consumer Total Debt vs. Profit Margin

GODREJCP   1,135  1.45  0.13%   
Considering Godrej Consumer's profitability and operating efficiency indicators, Godrej Consumer Products may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Godrej Consumer's ability to earn profits and add value for shareholders.
For Godrej Consumer profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Godrej Consumer to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Godrej Consumer Products utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Godrej Consumer's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Godrej Consumer Products over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between Godrej Consumer's value and its price as these two are different measures arrived at by different means. Investors typically determine if Godrej Consumer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Godrej Consumer'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.

Godrej Consumer Products Profit Margin vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Godrej Consumer's current stock value. Our valuation model uses many indicators to compare Godrej Consumer value to that of its competitors to determine the firm's financial worth.
Godrej Consumer Products is rated as one of the top companies in total debt category among its peers. It also is one of the top stocks in profit margin category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Godrej Consumer by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Godrej Consumer's Stock. 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.

Godrej Total Debt vs. Competition

Godrej Consumer Products 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 219.63 Billion. Godrej Consumer retains roughly 32.22 Billion in total debt claiming about 15% of stocks in Consumer Staples industry.
Total debt  Revenue  Workforce  Valuation  Capitalization

Godrej Profit Margin 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.

Godrej Consumer

Total Debt

 = 

Bonds

+

Notes

 = 
32.22 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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Godrej Consumer

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.03) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Godrej Profit Margin Comparison

Godrej Consumer is currently under evaluation in profit margin category among its peers.

Godrej Consumer Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Godrej Consumer, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Godrej Consumer will eventually generate negative long term returns. The profitability progress is the general direction of Godrej Consumer's change in net profit over the period of time. It can combine multiple indicators of Godrej Consumer, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income125 B131.2 B
Operating Income362.2 M344.1 M
Income Before TaxB1.9 B
Total Other Income Expense Net1.6 B1.7 B
Net Loss-5.6 B-5.3 B
Income Tax Expense7.6 BB
Net Loss-5.6 B-5.3 B
Net Income Applicable To Common Shares19.6 B15.9 B
Interest Income1.9 B1.4 B
Net Interest Income-3 B-2.8 B
Change To Netincome-59.2 M-56.3 M

Godrej Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Godrej Consumer. 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 Godrej Consumer 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 Godrej Consumer's important profitability drivers and their relationship over time.

Use Godrej Consumer 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 Godrej Consumer 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 Godrej Consumer will appreciate offsetting losses from the drop in the long position's value.

Godrej Consumer Pair Trading

Godrej Consumer Products Pair Trading Analysis

The ability to find closely correlated positions to Godrej Consumer could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Godrej Consumer 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 Godrej Consumer - 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 Godrej Consumer Products to buy it.
The correlation of Godrej Consumer 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 Godrej Consumer moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Godrej Consumer Products 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 Godrej Consumer 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Godrej Consumer position

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Corona Opportunity Theme
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Other Information on Investing in Godrej Stock

To fully project Godrej Consumer's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Godrej Consumer Products 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 Godrej Consumer's income statement, its balance sheet, and the statement of cash flows.
Potential Godrej Consumer investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Godrej Consumer investors may work on each financial statement separately, they are all related. The changes in Godrej Consumer's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Godrej Consumer's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.