Reliance Industries EBITDA vs. Return On Asset
| RIGD Stock | USD 60.40 0.70 1.15% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 1.8 T | Current Value 1.2 T | Quarterly Volatility 336 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.17 | 0.2513 |
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| Net Profit Margin | 0.0968 | 0.0773 |
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| Operating Profit Margin | 0.12 | 0.1266 |
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| Pretax Profit Margin | 0.12 | 0.1162 |
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| Return On Assets | 0.0656 | 0.0396 |
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| Return On Equity | 0.14 | 0.0877 |
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For Reliance Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reliance Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reliance Industries Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reliance Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reliance Industries Limited over time as well as its relative position and ranking within its peers.
Reliance |
Reliance Industries Return On Asset vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Reliance Industries's current stock value. Our valuation model uses many indicators to compare Reliance Industries value to that of its competitors to determine the firm's financial worth. Reliance Industries Limited is currently regarded as top stock in ebitda category among its peers. It also is currently regarded as top stock in return on asset category among its peers . The ratio of EBITDA to Return On Asset for Reliance Industries Limited is about Huge . At this time, Reliance Industries' EBITDA is quite stable compared to the past year. 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 Reliance Industries' earnings, one of the primary drivers of an investment's value.Reliance Return On Asset vs. EBITDA
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.
Reliance Industries |
| = | 1.65 T |
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.
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.
Reliance Industries |
| = | 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.
Reliance Return On Asset Comparison
Reliance Industries is currently under evaluation in return on asset category among its peers.
Reliance Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Reliance Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reliance Industries will eventually generate negative long term returns. The profitability progress is the general direction of Reliance Industries' change in net profit over the period of time. It can combine multiple indicators of Reliance Industries, 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 | ||
| Net Interest Income | -111.9 B | -117.5 B | |
| Interest Income | 107.5 B | 99.3 B | |
| Operating Income | 1.1 T | 826.8 B | |
| Net Income From Continuing Ops | 790.2 B | 613.6 B | |
| Income Before Tax | 1 T | 781.6 B | |
| Net Income Applicable To Common Shares | 767.1 B | 534.5 B | |
| Net Income | 696.2 B | 567.6 B | |
| Income Tax Expense | 238.2 B | 148.9 B | |
| Change To Netincome | 317.9 B | 333.8 B | |
| Net Income Per Share | 51.45 | 54.02 | |
| Income Quality | 2.28 | 2.39 | |
| Net Income Per E B T | 0.66 | 0.86 |
Reliance Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Reliance Industries. 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 Reliance Industries 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 Reliance Industries' important profitability drivers and their relationship over time.
Use Reliance Industries 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 Reliance Industries 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 Reliance Industries will appreciate offsetting losses from the drop in the long position's value.Reliance Industries Pair Trading
Reliance Industries Limited Pair Trading Analysis
The ability to find closely correlated positions to Reliance Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Reliance Industries 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 Reliance Industries - 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 Reliance Industries Limited to buy it.
The correlation of Reliance Industries 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 Reliance Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Reliance Industries 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 Reliance Industries 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 Reliance Industries position
In addition to having Reliance Industries 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 Reliance Stock
To fully project Reliance Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Reliance Industries 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 Reliance Industries' income statement, its balance sheet, and the statement of cash flows.