Illinois Tool Return On Equity vs. Cash Per Share
| ILT Stock | EUR 263.30 1.00 0.38% |
For Illinois Tool profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Illinois Tool to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Illinois Tool Works utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Illinois Tool's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Illinois Tool Works over time as well as its relative position and ranking within its peers.
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Illinois Tool Works Cash Per Share vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Illinois Tool's current stock value. Our valuation model uses many indicators to compare Illinois Tool value to that of its competitors to determine the firm's financial worth. Illinois Tool Works is currently regarded as number one stock in return on equity category among its peers. It also is currently regarded as number one stock in cash per share category among its peers fabricating about 5.96 of Cash Per Share per Return On Equity. 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 Illinois Tool's earnings, one of the primary drivers of an investment's value.Illinois Cash Per Share 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.
Illinois Tool |
| = | 0.9 |
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.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
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| = | 5.39 X |
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
Illinois Cash Per Share Comparison
Illinois Tool is currently under evaluation in cash per share category among its peers.
Illinois Tool Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Illinois Tool, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Illinois Tool will eventually generate negative long term returns. The profitability progress is the general direction of Illinois Tool's change in net profit over the period of time. It can combine multiple indicators of Illinois Tool, 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.
Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois. Illinois Tool operates under Diversified Industrials classification in Germany and is traded on Frankfurt Stock Exchange. It employs 48000 people.
Illinois Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Illinois Tool. 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 Illinois Tool 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 Illinois Tool's important profitability drivers and their relationship over time.
Use Illinois Tool 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 Illinois Tool 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 Illinois Tool will appreciate offsetting losses from the drop in the long position's value.Illinois Tool Pair Trading
Illinois Tool Works Pair Trading Analysis
The ability to find closely correlated positions to Illinois Tool could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Illinois Tool 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 Illinois Tool - 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 Illinois Tool Works to buy it.
The correlation of Illinois Tool 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 Illinois Tool moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Illinois Tool Works 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 Illinois Tool 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 Illinois Tool position
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Additional Information and Resources on Investing in Illinois Stock
When determining whether Illinois Tool Works is a strong investment it is important to analyze Illinois Tool's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Illinois Tool's future performance. For an informed investment choice regarding Illinois Stock, refer to the following important reports:Check out Risk vs Return Analysis. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
To fully project Illinois Tool's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Illinois Tool Works 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 Illinois Tool's income statement, its balance sheet, and the statement of cash flows.