LG Electronics Revenue vs. Current Ratio
| LGLG Stock | EUR 14.50 0.10 0.68% |
For LG Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LG Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LG Electronics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LG Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LG Electronics over time as well as its relative position and ranking within its peers.
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LG Electronics Current Ratio vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LG Electronics's current stock value. Our valuation model uses many indicators to compare LG Electronics value to that of its competitors to determine the firm's financial worth. LG Electronics is considered the number one company in revenue category among its peers. It also is currently regarded as number one stock in current ratio category among its peers . The ratio of Revenue to Current Ratio for LG Electronics is about Huge . 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 LG Electronics' earnings, one of the primary drivers of an investment's value.LGLG Revenue vs. Competition
LG Electronics is considered the number one company in revenue category among its peers. Market size based on revenue of Consumer Electronics industry is now estimated at about 92.15 Trillion. LG Electronics totals roughly 74.72 Trillion in revenue claiming about 81% of stocks in Consumer Electronics industry.
LGLG Current Ratio vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
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| = | 74.72 T |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
LG Electronics |
| = | 1.15 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
LGLG Current Ratio Comparison
LG Electronics is currently under evaluation in current ratio category among its peers.
LG Electronics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in LG Electronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LG Electronics will eventually generate negative long term returns. The profitability progress is the general direction of LG Electronics' change in net profit over the period of time. It can combine multiple indicators of LG Electronics, 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.
LG Electronics Inc., together with its subsidiaries, manufactures and sells consumer electronics, mobile communications, and home appliances worldwide. LG Electronics Inc. was founded in 1958 and is headquartered in Seoul, South Korea. LG ELECT is traded on Frankfurt Stock Exchange in Germany.
LGLG Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LG Electronics. 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 LG Electronics 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 LG Electronics' important profitability drivers and their relationship over time.
Use LG Electronics 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 LG Electronics 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 LG Electronics will appreciate offsetting losses from the drop in the long position's value.LG Electronics Pair Trading
LG Electronics Pair Trading Analysis
The ability to find closely correlated positions to LG Electronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LG Electronics 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 LG Electronics - 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 LG Electronics to buy it.
The correlation of LG Electronics 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 LG Electronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LG Electronics 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 LG Electronics 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 LG Electronics position
In addition to having LG Electronics 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 LGLG Stock
To fully project LG Electronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LG Electronics 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 LG Electronics' income statement, its balance sheet, and the statement of cash flows.