| RBA Stock | | | CAD 138.34 0.78 0.57% |
Based on Ritchie Bros' profitability indicators, Ritchie Bros Auctioneers may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Ritchie Bros' ability to earn profits and add value for shareholders. At this time, Ritchie Bros'
Price To Sales Ratio is very stable compared to the past year. As of the 29th of November 2024,
EV To Sales is likely to grow to 6.77, while
Days Sales Outstanding is likely to drop 37.23. At this time, Ritchie Bros'
Income Quality is very stable compared to the past year.
For Ritchie Bros profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ritchie Bros to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Ritchie Bros Auctioneers utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ritchie Bros's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ritchie Bros Auctioneers over time as well as its relative position and ranking within its peers.
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Please note, there is a significant difference between Ritchie Bros' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ritchie Bros is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ritchie Bros' 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.
Ritchie Bros Auctioneers Cash And Equivalents vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ritchie Bros's current stock value. Our valuation model uses many indicators to compare Ritchie Bros value to that of its competitors to determine the firm's financial worth.
Ritchie Bros Auctioneers is rated
below average in return on asset category among its peers. It is rated
fourth in cash and equivalents category among its peers creating about
12,389,072,682 of Cash And Equivalents per Return On Asset. At this time, Ritchie Bros' Cash And Equivalents is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ritchie Bros by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ritchie Bros' 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.
Ritchie Cash And Equivalents 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.
Ritchie Bros | Return On Asset | = | Net IncomeTotal Assets |
| = | 0.0399 |
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.
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.
Ritchie Bros | Cash | = | Bank Deposits | + | Liquidities |
| = | 494.32 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).
Ritchie Cash And Equivalents Comparison
Ritchie Bros is currently under evaluation in cash and equivalents category among its peers.
Ritchie Bros Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ritchie Bros, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ritchie Bros will eventually generate negative long term returns. The profitability progress is the general direction of Ritchie Bros' change in net profit over the period of time. It can combine
multiple indicators of Ritchie Bros, 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.
Ritchie Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Ritchie Bros. 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 Ritchie Bros 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 Ritchie Bros' important profitability drivers and their relationship over time.
Use Ritchie Bros 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 Ritchie Bros 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 Ritchie Bros will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Ritchie Bros could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ritchie Bros 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 Ritchie Bros - 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 Ritchie Bros Auctioneers to buy it.
The correlation of Ritchie Bros 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 Ritchie Bros moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ritchie Bros Auctioneers 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 Ritchie Bros 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 Ritchie Bros position
In addition to having Ritchie Bros 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.
Latest Gainers
Dynamically computed list of top equities currently sorted across major exchanges. The Latest Gainers theme has 232 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
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Latest Gainers Theme or any other
thematic opportunities.
Other Information on Investing in Ritchie Stock
To fully project Ritchie Bros'
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Ritchie Bros Auctioneers 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 Ritchie Bros' income statement, its balance sheet, and the statement of cash flows.
Potential Ritchie Bros investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ritchie Bros investors may work on each financial statement separately, they are all related. The changes in Ritchie Bros's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ritchie Bros's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
