IRSA Inversiones Return On Equity vs. Return On Asset
| IRSA Stock | ARS 1,915 15.00 0.78% |
For IRSA Inversiones profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IRSA Inversiones to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well IRSA Inversiones y utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IRSA Inversiones's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of IRSA Inversiones y over time as well as its relative position and ranking within its peers.
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IRSA Inversiones y Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining IRSA Inversiones's current stock value. Our valuation model uses many indicators to compare IRSA Inversiones value to that of its competitors to determine the firm's financial worth. IRSA Inversiones y is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers reporting about 0.12 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for IRSA Inversiones y is roughly 8.36 . Comparative valuation analysis is a catch-all model that can be used if you cannot value IRSA Inversiones by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for IRSA Inversiones' 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.IRSA 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.
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| = | 0.26 |
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.
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| = | 0.0307 |
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.
IRSA Return On Asset Comparison
IRSA Inversiones is rated below average in return on asset category among its peers.
IRSA Inversiones Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in IRSA Inversiones, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IRSA Inversiones will eventually generate negative long term returns. The profitability progress is the general direction of IRSA Inversiones' change in net profit over the period of time. It can combine multiple indicators of IRSA Inversiones, 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.
IRSA Inversiones y Representaciones Sociedad Annima engages in the diversified real estate activities in Argentina. IRSA Inversiones y Representaciones Sociedad Annima is a subsidiary of Cresud Sociedad Annima Comercial, Inmobiliaria, Financiera y Agropecuaria. IRSA INVERSIONES operates under Real Estate - General classification in Argentina and is traded on Buenos-Aires Stock Exchange. It employs 2385 people.
IRSA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on IRSA Inversiones. 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 IRSA Inversiones 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 IRSA Inversiones' important profitability drivers and their relationship over time.
Use IRSA Inversiones 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 IRSA Inversiones 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 IRSA Inversiones will appreciate offsetting losses from the drop in the long position's value.IRSA Inversiones Pair Trading
IRSA Inversiones y Pair Trading Analysis
The ability to find closely correlated positions to IRSA Inversiones could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IRSA Inversiones 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 IRSA Inversiones - 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 IRSA Inversiones y to buy it.
The correlation of IRSA Inversiones 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 IRSA Inversiones moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if IRSA Inversiones y 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 IRSA Inversiones 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 IRSA Inversiones position
In addition to having IRSA Inversiones 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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Additional Information and Resources on Investing in IRSA Stock
When determining whether IRSA Inversiones y is a strong investment it is important to analyze IRSA Inversiones' 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 IRSA Inversiones' future performance. For an informed investment choice regarding IRSA Stock, refer to the following important reports:Check out Risk vs Return Analysis. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
To fully project IRSA Inversiones' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of IRSA Inversiones y 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 IRSA Inversiones' income statement, its balance sheet, and the statement of cash flows.