PPL Cash And Equivalents vs. Revenue
| PP9 Stock | EUR 32.92 0.05 0.15% |
For PPL profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PPL to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PPL Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PPL's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PPL Corporation over time as well as its relative position and ranking within its peers.
PPL |
PPL Corporation Revenue vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining PPL's current stock value. Our valuation model uses many indicators to compare PPL value to that of its competitors to determine the firm's financial worth. PPL Corporation is considered to be number one stock in cash and equivalents category among its peers. It also is rated top company in revenue category among its peers totaling about 15.25 of Revenue per Cash And Equivalents. 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 PPL's earnings, one of the primary drivers of an investment's value.PPL Revenue 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.
PPL |
| = | 518 M |
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).
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.
PPL |
| = | 7.9 B |
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.
PPL Revenue vs Competition
PPL Corporation is rated top company in revenue category among its peers. Market size based on revenue of Utilities - Regulated Electric industry is at this time estimated at about 420.8 Billion. PPL claims roughly 7.9 Billion in revenue contributing just under 2% to Utilities - Regulated Electric industry.
PPL Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in PPL, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PPL will eventually generate negative long term returns. The profitability progress is the general direction of PPL's change in net profit over the period of time. It can combine multiple indicators of PPL, 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.
PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania. PPL operates under Utilities - Regulated Electric classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12000 people.
PPL Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on PPL. 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 PPL 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 PPL's important profitability drivers and their relationship over time.
Use PPL 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 PPL 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 PPL will appreciate offsetting losses from the drop in the long position's value.PPL Pair Trading
PPL Corporation Pair Trading Analysis
The ability to find closely correlated positions to PPL could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PPL 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 PPL - 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 PPL Corporation to buy it.
The correlation of PPL 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 PPL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PPL Corporation 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 PPL 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 PPL position
In addition to having PPL 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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Additional Information and Resources on Investing in PPL Stock
When determining whether PPL Corporation is a strong investment it is important to analyze PPL's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PPL's future performance. For an informed investment choice regarding PPL Stock, refer to the following important reports:Check out Your Equity Center. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
To fully project PPL's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PPL Corporation 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 PPL's income statement, its balance sheet, and the statement of cash flows.