Kothari Petrochemicals Gross Profit vs. Cash Flow From Operations
| KOTHARIPET | 192.20 7.18 3.60% |
Gross Profit | First Reported 2011-12-31 | Previous Quarter 319.4 M | Current Value 298.3 M | Quarterly Volatility 127.4 M |
For Kothari Petrochemicals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kothari Petrochemicals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kothari Petrochemicals Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kothari Petrochemicals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kothari Petrochemicals Limited over time as well as its relative position and ranking within its peers.
Kothari |
Kothari Petrochemicals Cash Flow From Operations vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Kothari Petrochemicals's current stock value. Our valuation model uses many indicators to compare Kothari Petrochemicals value to that of its competitors to determine the firm's financial worth. Kothari Petrochemicals Limited is currently regarded as number one stock in gross profit category among its peers. It also is currently regarded as number one stock in cash flow from operations category among its peers making about 0.62 of Cash Flow From Operations per Gross Profit. The ratio of Gross Profit to Cash Flow From Operations for Kothari Petrochemicals Limited is roughly 1.62 . As of now, Kothari Petrochemicals' Gross Profit is increasing as compared to previous years. Comparative valuation analysis is a catch-all model that can be used if you cannot value Kothari Petrochemicals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Kothari Petrochemicals' 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.Kothari Cash Flow From Operations vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Kothari Petrochemicals |
| = | 1.16 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Kothari Petrochemicals |
| = | 715.22 M |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Kothari Cash Flow From Operations Comparison
Kothari Petrochemicals is currently under evaluation in cash flow from operations category among its peers.
Kothari Petrochemicals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Kothari Petrochemicals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kothari Petrochemicals will eventually generate negative long term returns. The profitability progress is the general direction of Kothari Petrochemicals' change in net profit over the period of time. It can combine multiple indicators of Kothari Petrochemicals, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 3.4 M | 3.6 M | |
| Operating Income | 1.4 B | 1.5 B | |
| Income Before Tax | 950.8 M | 998.4 M | |
| Total Other Income Expense Net | -445.5 M | -423.2 M | |
| Net Income | 637.8 M | 669.7 M | |
| Income Tax Expense | 313 M | 328.6 M | |
| Net Income From Continuing Ops | 637.8 M | 669.7 M | |
| Net Income Applicable To Common Shares | 450.5 M | 473.1 M | |
| Interest Income | 11.2 M | 13.9 M | |
| Net Interest Income | -11.9 M | -12.5 M | |
| Change To Netincome | 7.7 M | 8.1 M |
Kothari Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Kothari Petrochemicals. 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 Kothari Petrochemicals 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 Kothari Petrochemicals' important profitability drivers and their relationship over time.
Use Kothari Petrochemicals 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 Kothari Petrochemicals 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 Kothari Petrochemicals will appreciate offsetting losses from the drop in the long position's value.Kothari Petrochemicals Pair Trading
Kothari Petrochemicals Limited Pair Trading Analysis
The ability to find closely correlated positions to Kothari Petrochemicals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kothari Petrochemicals 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 Kothari Petrochemicals - 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 Kothari Petrochemicals Limited to buy it.
The correlation of Kothari Petrochemicals 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 Kothari Petrochemicals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kothari Petrochemicals 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 Kothari Petrochemicals 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 Kothari Petrochemicals position
In addition to having Kothari Petrochemicals 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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Other Information on Investing in Kothari Stock
To fully project Kothari Petrochemicals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Kothari Petrochemicals 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 Kothari Petrochemicals' income statement, its balance sheet, and the statement of cash flows.