Rio2 EBITDA vs. Return On Equity
| RIOFF Stock | USD 0.48 0.00 0.00% |
For Rio2 profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rio2 to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rio2 Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rio2's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rio2 Limited over time as well as its relative position and ranking within its peers.
Rio2 |
Rio2 Limited Return On Equity vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Rio2's current stock value. Our valuation model uses many indicators to compare Rio2 value to that of its competitors to determine the firm's financial worth. Rio2 Limited is rated below average in ebitda category among its peers. It is currently regarded as top stock in return on equity category among its peers . 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 Rio2's earnings, one of the primary drivers of an investment's value.Rio2 Return On Equity 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.
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| = | (11.59 M) |
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 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.
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| = | -0.0792 |
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.
Rio2 Return On Equity Comparison
Rio2 is currently under evaluation in return on equity category among its peers.
Rio2 Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Rio2, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rio2 will eventually generate negative long term returns. The profitability progress is the general direction of Rio2's change in net profit over the period of time. It can combine multiple indicators of Rio2, 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.
Rio2 Limited engages in the exploration, development, and mining of mineral properties in Canada, Peru, and Chile. The company was incorporated in 1990 and is headquartered in Vancouver, Canada. Rio2 operates under Gold classification in the United States and is traded on OTC Exchange.
Rio2 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Rio2. 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 Rio2 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 Rio2's important profitability drivers and their relationship over time.
Use Rio2 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 Rio2 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 Rio2 will appreciate offsetting losses from the drop in the long position's value.Rio2 Pair Trading
Rio2 Limited Pair Trading Analysis
The ability to find closely correlated positions to Rio2 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rio2 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 Rio2 - 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 Rio2 Limited to buy it.
The correlation of Rio2 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 Rio2 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rio2 Limited 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 Rio2 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 Rio2 position
In addition to having Rio2 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 Rio2 OTC Stock
To fully project Rio2's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rio2 Limited 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 Rio2's income statement, its balance sheet, and the statement of cash flows.