South32 Total Debt vs. EBITDA
| S32 Stock | 4,100 139.00 3.28% |
For South32 profitability analysis, we use financial ratios and fundamental drivers that measure the ability of South32 to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well South32 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between South32's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of South32 over time as well as its relative position and ranking within its peers.
South32 |
South32 EBITDA vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining South32's current stock value. Our valuation model uses many indicators to compare South32 value to that of its competitors to determine the firm's financial worth. South32 is currently regarded number one company in total debt category among its peers. It also is currently regarded as top stock in ebitda category among its peers totaling about 5.48 of EBITDA per Total Debt. 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 South32's earnings, one of the primary drivers of an investment's value.South32 Total Debt vs. Competition
South32 is currently regarded number one company in total debt category among its peers. Total debt of Other Industrial Metals & Mining industry is at this time estimated at about 24.44 Billion. South32 holds roughly 815 Million in total debt claiming about 3% of all equities under Other Industrial Metals & Mining industry.
South32 EBITDA 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.
South32 |
| = | 815 M |
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.
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.
South32 |
| = | 4.47 B |
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.
South32 EBITDA Comparison
South32 is currently under evaluation in ebitda category among its peers.
South32 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on South32. 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 South32 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 South32's important profitability drivers and their relationship over time.
Use South32 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 South32 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 South32 will appreciate offsetting losses from the drop in the long position's value.South32 Pair Trading
South32 Pair Trading Analysis
The ability to find closely correlated positions to South32 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace South32 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 South32 - 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 South32 to buy it.
The correlation of South32 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 South32 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if South32 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 South32 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 South32 position
In addition to having South32 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 High Yield ETFs Thematic Idea Now
High Yield ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The High Yield ETFs theme has 106 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 High Yield ETFs Theme or any other thematic opportunities.
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Other Information on Investing in South32 Stock
To fully project South32's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of South32 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 South32's income statement, its balance sheet, and the statement of cash flows.