Kumba Iron Net Income vs. Return On Asset
| KIO Stock | 33,450 3.00 0.01% |
For Kumba Iron profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kumba Iron to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kumba Iron Ore utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kumba Iron's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kumba Iron Ore over time as well as its relative position and ranking within its peers.
Kumba |
Kumba Iron Ore Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Kumba Iron's current stock value. Our valuation model uses many indicators to compare Kumba Iron value to that of its competitors to determine the firm's financial worth. Kumba Iron Ore is currently regarded as number one stock in net income category among its peers. It also is currently regarded as number one stock in return on asset category among its peers . The ratio of Net Income to Return On Asset for Kumba Iron Ore is about 127,847,809,377 . 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 Kumba Iron's earnings, one of the primary drivers of an investment's value.Kumba Return On Asset vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Kumba Iron |
| = | 33.27 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Kumba Iron |
| = | 0.26 |
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.
Kumba Return On Asset Comparison
Kumba Iron is currently under evaluation in return on asset category among its peers.
Kumba Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Kumba Iron. 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 Kumba Iron 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 Kumba Iron's important profitability drivers and their relationship over time.
Use Kumba Iron 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 Kumba Iron 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 Kumba Iron will appreciate offsetting losses from the drop in the long position's value.Kumba Iron Pair Trading
Kumba Iron Ore Pair Trading Analysis
The ability to find closely correlated positions to Kumba Iron could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kumba Iron 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 Kumba Iron - 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 Kumba Iron Ore to buy it.
The correlation of Kumba Iron 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 Kumba Iron moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kumba Iron Ore 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 Kumba Iron 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 Kumba Iron position
In addition to having Kumba Iron 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 Restaurants Thematic Idea Now
Restaurants
Entities that are involved in restaurant business, as well as coffee shop chains and other eateries. The Restaurants theme has 38 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 Restaurants Theme or any other thematic opportunities.
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Other Information on Investing in Kumba Stock
To fully project Kumba Iron's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Kumba Iron Ore 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 Kumba Iron's income statement, its balance sheet, and the statement of cash flows.