Shell Plc Profitability Analysis
| SHEL Stock | 2,603 6.00 0.23% |
Net Income | First Reported 2004-09-30 | Previous Quarter 3.5 B | Current Value 4.3 B | Quarterly Volatility 4.4 B |
For Shell Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shell Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shell plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shell Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shell plc over time as well as its relative position and ranking within its peers.
Shell |
Shell plc Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Shell Plc's current stock value. Our valuation model uses many indicators to compare Shell Plc value to that of its competitors to determine the firm's financial worth. Shell plc is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in return on asset category among its peers reporting about 0.57 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Shell plc is roughly 1.76 . 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 Shell Plc's earnings, one of the primary drivers of an investment's value.Shell Return On Asset 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.
Shell Plc |
| = | 0.0837 |
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.
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.
Shell Plc |
| = | 0.0475 |
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.
Shell Return On Asset Comparison
Shell Plc is currently under evaluation in return on asset category among its peers.
Shell Plc Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Shell Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shell Plc will eventually generate negative long term returns. The profitability progress is the general direction of Shell Plc's change in net profit over the period of time. It can combine multiple indicators of Shell Plc, 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 | ||
| Accumulated Other Comprehensive Income | 20 B | 21 B | |
| Operating Income | 30.7 B | 19.8 B | |
| Income Before Tax | 32.6 B | 31.5 B | |
| Total Other Income Expense Net | 1.9 B | 2 B | |
| Net Income | 19.4 B | 21.8 B | |
| Income Tax Expense | 13 B | 9.4 B | |
| Net Income From Continuing Ops | 19.6 B | 15.1 B | |
| Net Income Applicable To Common Shares | 48.7 B | 51.1 B | |
| Net Interest Income | -1.6 B | -1.7 B | |
| Interest Income | 2.3 B | 2.4 B | |
| Change To Netincome | 15.4 B | 16.1 B |
Shell Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Shell Plc. 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 Shell Plc 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 Shell Plc's important profitability drivers and their relationship over time.
Use Shell Plc 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 Shell Plc 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 Shell Plc will appreciate offsetting losses from the drop in the long position's value.Shell Plc Pair Trading
Shell plc Pair Trading Analysis
The ability to find closely correlated positions to Shell Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shell Plc 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 Shell Plc - 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 Shell plc to buy it.
The correlation of Shell Plc 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 Shell Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shell plc 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 Shell Plc 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 Shell Plc position
In addition to having Shell Plc 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 Gold ETFs Thematic Idea Now
Gold ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Gold ETFs theme has 19 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 Gold ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Shell Stock Analysis
When running Shell Plc's price analysis, check to measure Shell Plc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shell Plc is operating at the current time. Most of Shell Plc's value examination focuses on studying past and present price action to predict the probability of Shell Plc's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shell Plc's price. Additionally, you may evaluate how the addition of Shell Plc to your portfolios can decrease your overall portfolio volatility.