Maruti Suzuki Return On Asset vs. EBITDA
| MARUTI Stock | 11,074 124.35 1.14% |
For Maruti Suzuki profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Maruti Suzuki to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Maruti Suzuki India utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Maruti Suzuki's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Maruti Suzuki India over time as well as its relative position and ranking within its peers.
Maruti |
Maruti Suzuki India EBITDA vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Maruti Suzuki's current stock value. Our valuation model uses many indicators to compare Maruti Suzuki value to that of its competitors to determine the firm's financial worth. Maruti Suzuki India is considered to be number one stock in return on asset category among its peers. It also is considered to be number one stock in ebitda category among its peers totaling about 2,612,387,022,016 of EBITDA per Return On Asset. At present, Maruti Suzuki's EBITDA is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Maruti Suzuki by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Maruti Suzuki's 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.Maruti EBITDA vs. Return On Asset
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.
Maruti Suzuki |
| = | 0.0863 |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Maruti Suzuki |
| = | 225.45 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Maruti EBITDA Comparison
Maruti Suzuki is currently under evaluation in ebitda category among its peers.
Maruti Suzuki Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Maruti Suzuki, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Maruti Suzuki will eventually generate negative long term returns. The profitability progress is the general direction of Maruti Suzuki's change in net profit over the period of time. It can combine multiple indicators of Maruti Suzuki, 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 | 26.6 B | 28 B | |
| Operating Income | 329.2 B | 345.7 B | |
| Income Before Tax | 174.2 B | 183 B | |
| Total Other Income Expense Net | -155 B | -147.2 B | |
| Net Income | 134.9 B | 141.6 B | |
| Income Tax Expense | 39.4 B | 41.3 B | |
| Net Income From Continuing Ops | 134.9 B | 70.8 B | |
| Net Income Applicable To Common Shares | 94.4 B | 63.1 B | |
| Interest Income | 4 B | 3.8 B | |
| Net Interest Income | -1.9 B | -1.8 B | |
| Change To Netincome | -18.1 B | -19 B |
Maruti Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Maruti Suzuki. 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 Maruti Suzuki 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 Maruti Suzuki's important profitability drivers and their relationship over time.
Use Maruti Suzuki 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 Maruti Suzuki 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 Maruti Suzuki will appreciate offsetting losses from the drop in the long position's value.Maruti Suzuki Pair Trading
Maruti Suzuki India Pair Trading Analysis
The ability to find closely correlated positions to Maruti Suzuki could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Maruti Suzuki 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 Maruti Suzuki - 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 Maruti Suzuki India to buy it.
The correlation of Maruti Suzuki 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 Maruti Suzuki moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Maruti Suzuki India 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 Maruti Suzuki 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 Maruti Suzuki position
In addition to having Maruti Suzuki 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 Maruti Stock
To fully project Maruti Suzuki's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Maruti Suzuki India 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 Maruti Suzuki's income statement, its balance sheet, and the statement of cash flows.