LATAM Airlines Net Income vs. Total Debt
| LTM Stock | USD 26.86 0.85 3.07% |
Net Income | First Reported 2010-12-31 | Previous Quarter 581.8 M | Current Value 610.9 M | Quarterly Volatility 2.2 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Return On Equity | 1.23 | 1.2921 |
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For LATAM Airlines profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LATAM Airlines to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LATAM Airlines Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LATAM Airlines's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LATAM Airlines Group over time as well as its relative position and ranking within its peers.
LATAM |
LATAM Airlines' Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LATAM Airlines. If investors know LATAM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LATAM Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of LATAM Airlines Group is measured differently than its book value, which is the value of LATAM that is recorded on the company's balance sheet. Investors also form their own opinion of LATAM Airlines' value that differs from its market value or its book value, called intrinsic value, which is LATAM Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LATAM Airlines' market value can be influenced by many factors that don't directly affect LATAM Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LATAM Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if LATAM Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LATAM Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
LATAM Airlines Group Total Debt vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LATAM Airlines's current stock value. Our valuation model uses many indicators to compare LATAM Airlines value to that of its competitors to determine the firm's financial worth. LATAM Airlines Group is currently regarded as number one stock in net income category among its peers. It also is considered the number one company in total debt category among its peers making up about 12.09 of Total Debt per Net Income. At this time, LATAM Airlines' Net Income is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value LATAM Airlines by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.LATAM Total Debt 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.
LATAM Airlines |
| = | 581.83 M |
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.
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.
LATAM Airlines |
| = | 7.04 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.
LATAM Total Debt vs Competition
LATAM Airlines Group is considered the number one company in total debt category among its peers. Total debt of Industrials industry is now estimated at about 10.11 Billion. LATAM Airlines totals roughly 7.04 Billion in total debt claiming about 70% of equities under Industrials industry.
LATAM Airlines Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in LATAM Airlines, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LATAM Airlines will eventually generate negative long term returns. The profitability progress is the general direction of LATAM Airlines' change in net profit over the period of time. It can combine multiple indicators of LATAM Airlines, 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 | -5 B | -5.3 B | |
| Net Interest Income | -572.9 M | -601.5 M | |
| Operating Income | 1.1 B | 1.1 B | |
| Net Income From Continuing Ops | 581.5 M | 610.6 M | |
| Income Before Tax | 596.5 M | 626.3 M | |
| Total Other Income Expense Net | -481.7 M | -505.8 M | |
| Net Income | 581.8 M | 610.9 M | |
| Income Tax Expense | 14.9 M | 11.7 M | |
| Net Income Per Share | 1.93 | 1.83 | |
| Income Quality | 3.04 | 5.07 | |
| Net Income Per E B T | 0.98 | 0.67 |
LATAM Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LATAM Airlines. 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 LATAM Airlines 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 LATAM Airlines' important profitability drivers and their relationship over time.
Use LATAM Airlines 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 LATAM Airlines 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 LATAM Airlines will appreciate offsetting losses from the drop in the long position's value.LATAM Airlines Pair Trading
LATAM Airlines Group Pair Trading Analysis
The ability to find closely correlated positions to LATAM Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LATAM Airlines 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 LATAM Airlines - 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 LATAM Airlines Group to buy it.
The correlation of LATAM Airlines 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 LATAM Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LATAM Airlines Group 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 LATAM Airlines 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 LATAM Airlines position
In addition to having LATAM Airlines 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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Companies that develop and distribute software and software systems to individuals or business. The Software theme has 38 constituents at this time.
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Check out Correlation Analysis. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
To fully project LATAM Airlines' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LATAM Airlines Group 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 LATAM Airlines' income statement, its balance sheet, and the statement of cash flows.