Packagingof America Return On Asset vs. EBITDA
| PKA Stock | EUR 232.80 0.20 0.09% |
For Packagingof America profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Packagingof America to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Packaging of utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Packagingof America's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Packaging of over time as well as its relative position and ranking within its peers.
Packagingof |
Packagingof America EBITDA vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Packagingof America's current stock value. Our valuation model uses many indicators to compare Packagingof America value to that of its competitors to determine the firm's financial worth. Packaging of is regarded fifth in return on asset category among its peers. It is rated below average in ebitda category among its peers totaling about 16,047,497,880 of EBITDA per Return On Asset. 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 Packagingof America's earnings, one of the primary drivers of an investment's value.Packagingof 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.
Packagingof America |
| = | 0.12 |
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.
Packagingof America |
| = | 1.89 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.
Packagingof EBITDA Comparison
Packaging is rated below average in ebitda category among its peers.
Packagingof America Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Packagingof America, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Packagingof America will eventually generate negative long term returns. The profitability progress is the general direction of Packagingof America's change in net profit over the period of time. It can combine multiple indicators of Packagingof America, 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.
Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products primarily in the United States. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois. PACKAGING CORP operates under Packaging Containers classification in Germany and is traded on Frankfurt Stock Exchange. It employs 15000 people.
Packagingof Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Packagingof America. 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 Packagingof America 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 Packagingof America's important profitability drivers and their relationship over time.
Use Packagingof America 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 Packagingof America 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 Packagingof America will appreciate offsetting losses from the drop in the long position's value.Packagingof America Pair Trading
Packaging of Pair Trading Analysis
The ability to find closely correlated positions to Packagingof America could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Packagingof America 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 Packagingof America - 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 Packaging of to buy it.
The correlation of Packagingof America 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 Packagingof America moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Packagingof America 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 Packagingof America 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 Packagingof America position
In addition to having Packagingof America 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 Packagingof Stock
To fully project Packagingof America's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Packagingof America 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 Packagingof America's income statement, its balance sheet, and the statement of cash flows.