Nestle India Cash And Equivalents vs. Profit Margin
| NESTLEIND | 2,236 35.75 1.57% |
Cash And Equivalents | First Reported 2010-12-31 | Previous Quarter 8.3 B | Current Value 8.7 B | Quarterly Volatility 4.1 B |
For Nestle India profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nestle India to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nestle India Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nestle India's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nestle India Limited over time as well as its relative position and ranking within its peers.
Nestle |
Nestle India Limited Profit Margin vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nestle India's current stock value. Our valuation model uses many indicators to compare Nestle India value to that of its competitors to determine the firm's financial worth. Nestle India Limited is considered to be number one stock in cash and equivalents category among its peers. It also is considered to be number one stock in profit margin category among its peers . The ratio of Cash And Equivalents to Profit Margin for Nestle India Limited is about 56,496,951,220 . As of now, Nestle India's Cash And Equivalents is decreasing as compared to previous years. Comparative valuation analysis is a catch-all model that can be used if you cannot value Nestle India by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nestle India'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.Nestle Profit Margin vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Nestle India |
| = | 9.27 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Nestle India |
| = | 0.16 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Nestle Profit Margin Comparison
Nestle India is currently under evaluation in profit margin category among its peers.
Nestle India Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nestle India, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nestle India will eventually generate negative long term returns. The profitability progress is the general direction of Nestle India's change in net profit over the period of time. It can combine multiple indicators of Nestle India, 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 | 108.5 M | 113.9 M | |
| Operating Income | 74.6 B | 78.4 B | |
| Income Before Tax | 43 B | 45.1 B | |
| Total Other Income Expense Net | -31.6 B | -30.1 B | |
| Net Income | 32 B | 17.9 B | |
| Income Tax Expense | 11 B | 11.6 B | |
| Net Income From Continuing Ops | 29.7 B | 18.2 B | |
| Net Income Applicable To Common Shares | 27.5 B | 16.8 B | |
| Interest Income | 1.8 B | 1.8 B | |
| Net Interest Income | -450.1 M | -427.6 M | |
| Change To Netincome | -233.2 M | -244.8 M |
Nestle Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nestle India. 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 Nestle India 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 Nestle India's important profitability drivers and their relationship over time.
Use Nestle India 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 Nestle India 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 Nestle India will appreciate offsetting losses from the drop in the long position's value.Nestle India Pair Trading
Nestle India Limited Pair Trading Analysis
The ability to find closely correlated positions to Nestle India could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nestle India 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 Nestle India - 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 Nestle India Limited to buy it.
The correlation of Nestle India 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 Nestle India moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nestle India Limited 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 Nestle India 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 Nestle India position
In addition to having Nestle India 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Rubber and Plastic Products theme has 27 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 Rubber and Plastic Products Theme or any other thematic opportunities.
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Other Information on Investing in Nestle Stock
To fully project Nestle India's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nestle India Limited 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 Nestle India's income statement, its balance sheet, and the statement of cash flows.