Redrow Plc Cash And Equivalents vs. Return On Equity

RDWWFDelisted Stock  USD 6.15  0.00  0.00%   
Based on the measurements of profitability obtained from Redrow Plc's financial statements, Redrow Plc may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Redrow Plc's ability to earn profits and add value for shareholders.
For Redrow Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Redrow Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Redrow Plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Redrow Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Redrow Plc over time as well as its relative position and ranking within its peers.
  
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
Please note, there is a significant difference between Redrow Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine if Redrow Plc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Redrow Plc's 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.

Redrow Plc Return On Equity vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Redrow Plc's current stock value. Our valuation model uses many indicators to compare Redrow Plc value to that of its competitors to determine the firm's financial worth.
Redrow Plc is rated below average in cash and equivalents category among its peers. It is rated fourth in return on equity category among its peers . The ratio of Cash And Equivalents to Return On Equity for Redrow Plc is about  1,551,891,368 . 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 Redrow Plc's earnings, one of the primary drivers of an investment's value.

Redrow Return On Equity 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.

Redrow Plc

Cash

 = 

Bank Deposits

+

Liquidities

 = 
160 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).
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Redrow Plc

Return On Equity

 = 

Net Income

Total Equity

 = 
0.1
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Redrow Return On Equity Comparison

Redrow Plc is currently under evaluation in return on equity category among its peers.

Redrow Plc Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Redrow Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Redrow Plc will eventually generate negative long term returns. The profitability progress is the general direction of Redrow Plc's change in net profit over the period of time. It can combine multiple indicators of Redrow Plc, 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.
Redrow plc focuses on housebuilding activities in the United Kingdom. Redrow plc was founded in 1974 and is based in Flintshire, the United Kingdom. Redrow Plc operates under Residential Construction classification in the United States and is traded on OTC Exchange. It employs 2161 people.

Redrow Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Redrow Plc. 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 Redrow Plc 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 Redrow Plc's important profitability drivers and their relationship over time.

Use Redrow Plc 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 Redrow Plc 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 Redrow Plc will appreciate offsetting losses from the drop in the long position's value.

Redrow Plc Pair Trading

Redrow Plc Pair Trading Analysis

The ability to find closely correlated positions to Redrow Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Redrow Plc 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 Redrow Plc - 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 Redrow Plc to buy it.
The correlation of Redrow Plc 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 Redrow Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Redrow Plc 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 Redrow Plc 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Redrow Plc position

In addition to having Redrow Plc 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?

Run SPAC Thematic Idea Now

SPAC
SPAC Theme
Entities that are involved in raising capital, merging with and acquiring companies, and investing in private equity through leveraged buyouts. The SPAC theme has 25 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 SPAC Theme or any other thematic opportunities.
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Consideration for investing in Redrow Pink Sheet

If you are still planning to invest in Redrow Plc check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Redrow Plc's history and understand the potential risks before investing.
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