Reservoir Capital Return On Equity vs. EBITDA
Taking into consideration Reservoir Capital's profitability measurements, Reservoir Capital Corp 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 Reservoir Capital's ability to earn profits and add value for shareholders.
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For Reservoir Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reservoir Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reservoir Capital Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reservoir Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reservoir Capital Corp over time as well as its relative position and ranking within its peers.
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Reservoir Capital Corp EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Reservoir Capital's current stock value. Our valuation model uses many indicators to compare Reservoir Capital value to that of its competitors to determine the firm's financial worth. Reservoir Capital Corp is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in ebitda 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 Reservoir Capital's earnings, one of the primary drivers of an investment's value.Reservoir EBITDA vs. Return On Equity
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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| = | -0.0021 |
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.
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.
Reservoir Capital |
| = | 2.69 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.
Reservoir EBITDA Comparison
Reservoir Capital is currently under evaluation in ebitda category among its peers.
Reservoir Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Reservoir Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reservoir Capital will eventually generate negative long term returns. The profitability progress is the general direction of Reservoir Capital's change in net profit over the period of time. It can combine multiple indicators of Reservoir Capital, 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.
The firm is focused on renewable energy and concentrates on operational power projects located in emerging markets. Reservoir Capital Corp. was incorporated in 2006 and is headquartered in Vancouver, Canada. Reservoir Cap operates under Asset Management classification in the United States and is traded on OTC Exchange.
Reservoir Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Reservoir Capital. 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 Reservoir Capital 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 Reservoir Capital's important profitability drivers and their relationship over time.
Use Reservoir Capital 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 Reservoir Capital 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 Reservoir Capital will appreciate offsetting losses from the drop in the long position's value.Reservoir Capital Pair Trading
Reservoir Capital Corp Pair Trading Analysis
The ability to find closely correlated positions to Reservoir Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Reservoir Capital 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 Reservoir Capital - 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 Reservoir Capital Corp to buy it.
The correlation of Reservoir Capital 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 Reservoir Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Reservoir Capital Corp 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 Reservoir Capital 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 Reservoir Capital position
In addition to having Reservoir Capital 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 Personal Services Thematic Idea Now
Personal Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Personal Services theme has 61 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 Personal Services Theme or any other thematic opportunities.
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Other Information on Investing in Reservoir Pink Sheet
To fully project Reservoir Capital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Reservoir Capital Corp 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 Reservoir Capital's income statement, its balance sheet, and the statement of cash flows.