Rolls Royce Total Debt vs. Net Income
| RRU Stock | EUR 6.57 0.05 0.77% |
For Rolls Royce profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rolls Royce to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rolls Royce Holdings plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rolls Royce's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rolls Royce Holdings plc over time as well as its relative position and ranking within its peers.
Rolls |
Rolls Royce Holdings Net Income vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Rolls Royce's current stock value. Our valuation model uses many indicators to compare Rolls Royce value to that of its competitors to determine the firm's financial worth. Rolls Royce Holdings plc is rated fourth in total debt category among its peers. It is rated second in net income 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 Rolls Royce's earnings, one of the primary drivers of an investment's value.Rolls Total Debt vs. Competition
Rolls Royce Holdings plc is rated fourth in total debt category among its peers. Total debt of Aerospace & Defense industry is at this time estimated at about 138.28 Billion. Rolls Royce holds roughly 4.11 Billion in total debt claiming about 2.97% of stocks in Aerospace & Defense industry.
Rolls Net Income vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Rolls Royce |
| = | 4.11 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Rolls Royce |
| = | (1.27 B) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Rolls Net Income Comparison
Rolls Royce is currently under evaluation in net income category among its peers.
Rolls Royce Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Rolls Royce, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rolls Royce will eventually generate negative long term returns. The profitability progress is the general direction of Rolls Royce's change in net profit over the period of time. It can combine multiple indicators of Rolls Royce, 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.
Rolls-Royce Holdings plc operates as an industrial technology company worldwide. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom. ROLLS ROYCE operates under Aerospace Defense classification in Germany and is traded on Frankfurt Stock Exchange. It employs 54500 people.
Rolls Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Rolls Royce. 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 Rolls Royce 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 Rolls Royce's important profitability drivers and their relationship over time.
Use Rolls Royce 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 Rolls Royce 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 Rolls Royce will appreciate offsetting losses from the drop in the long position's value.Rolls Royce Pair Trading
Rolls Royce Holdings plc Pair Trading Analysis
The ability to find closely correlated positions to Rolls Royce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rolls Royce 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 Rolls Royce - 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 Rolls Royce Holdings plc to buy it.
The correlation of Rolls Royce 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 Rolls Royce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rolls Royce Holdings 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 Rolls Royce 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 Rolls Royce position
In addition to having Rolls Royce 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 Rolls Stock
To fully project Rolls Royce's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rolls Royce Holdings 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 Rolls Royce's income statement, its balance sheet, and the statement of cash flows.