Indonesian Tobacco Return On Equity vs. Total Debt
| ITIC Stock | 268.00 2.00 0.74% |
For Indonesian Tobacco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Indonesian Tobacco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Indonesian Tobacco Tbk utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Indonesian Tobacco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Indonesian Tobacco Tbk over time as well as its relative position and ranking within its peers.
Indonesian |
Indonesian Tobacco Tbk Total Debt vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Indonesian Tobacco's current stock value. Our valuation model uses many indicators to compare Indonesian Tobacco value to that of its competitors to determine the firm's financial worth. Indonesian Tobacco Tbk is currently regarded as number one stock in return on equity category among its peers. It also is considered the number one company in total debt category among its peers making up about 541,986,974,599 of Total Debt 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 Indonesian Tobacco's earnings, one of the primary drivers of an investment's value.Indonesian Total Debt 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.
Indonesian Tobacco |
| = | 0.0685 |
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.
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.
Indonesian Tobacco |
| = | 37.13 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.
Indonesian Total Debt vs Competition
Indonesian Tobacco Tbk is considered the number one company in total debt category among its peers. Total debt of Tobacco industry is currently estimated at about 3.9 Trillion. Indonesian Tobacco maintains roughly 37.13 Billion in total debt contributing less than 1% to equities listed under Tobacco industry.
Indonesian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Indonesian Tobacco. 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 Indonesian Tobacco 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 Indonesian Tobacco's important profitability drivers and their relationship over time.
Use Indonesian Tobacco 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 Indonesian Tobacco 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 Indonesian Tobacco will appreciate offsetting losses from the drop in the long position's value.Indonesian Tobacco Pair Trading
Indonesian Tobacco Tbk Pair Trading Analysis
The ability to find closely correlated positions to Indonesian Tobacco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Indonesian Tobacco 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 Indonesian Tobacco - 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 Indonesian Tobacco Tbk to buy it.
The correlation of Indonesian Tobacco 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 Indonesian Tobacco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Indonesian Tobacco Tbk 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 Indonesian Tobacco 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 Indonesian Tobacco position
In addition to having Indonesian Tobacco 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 Millennials Best Thematic Idea Now
Millennials Best
Companies or funds that provide products or services that appeal to the generation of millennials and that are expected to experience growth in the next 5 years. The millennial generation usually refers to the demographic population that were born between 1980 to 2000. The Millennials Best theme has 77 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 Millennials Best Theme or any other thematic opportunities.
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Other Information on Investing in Indonesian Stock
To fully project Indonesian Tobacco's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Indonesian Tobacco Tbk 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 Indonesian Tobacco's income statement, its balance sheet, and the statement of cash flows.