South32 ADR Return On Asset vs. Retained Earnings
| SOUHY Stock | USD 12.21 0.05 0.41% |
For South32 ADR profitability analysis, we use financial ratios and fundamental drivers that measure the ability of South32 ADR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well South32 ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between South32 ADR's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of South32 ADR over time as well as its relative position and ranking within its peers.
South32 |
South32 ADR Retained Earnings vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining South32 ADR's current stock value. Our valuation model uses many indicators to compare South32 ADR value to that of its competitors to determine the firm's financial worth. South32 ADR is currently regarded as top stock in return on asset category among its peers. It also is currently regarded as top stock in retained earnings category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value South32 ADR by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for South32 ADR's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.South32 Retained Earnings vs. Return On Asset
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.
South32 ADR |
| = | 0.15 |
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.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
South32 ADR |
| = | (1.98 B) |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
South32 ADR Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in South32 ADR, profitability is also one of the essential criteria for including it into their portfolios because, without profit, South32 ADR will eventually generate negative long term returns. The profitability progress is the general direction of South32 ADR's change in net profit over the period of time. It can combine multiple indicators of South32 ADR, 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.
South32 Limited operates as a diversified metals and mining company in Australia, Southern Africa, North America, and South America. The company was incorporated in 2000 and is headquartered in Perth, Australia. South32 operates under Other Industrial Metals Mining classification in the United States and is traded on OTC Exchange. It employs 9096 people.
South32 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on South32 ADR. 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 ADR 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 ADR's important profitability drivers and their relationship over time.
Use South32 ADR 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 ADR 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 ADR will appreciate offsetting losses from the drop in the long position's value.South32 ADR Pair Trading
South32 ADR Pair Trading Analysis
The ability to find closely correlated positions to South32 ADR 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 ADR 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 ADR - 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 ADR to buy it.
The correlation of South32 ADR 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 ADR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if South32 ADR 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 ADR 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 ADR position
In addition to having South32 ADR 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 Chemicals Thematic Idea Now
Chemicals
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Chemicals 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 Chemicals Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for South32 Pink Sheet Analysis
When running South32 ADR's price analysis, check to measure South32 ADR'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 South32 ADR is operating at the current time. Most of South32 ADR's value examination focuses on studying past and present price action to predict the probability of South32 ADR's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move South32 ADR's price. Additionally, you may evaluate how the addition of South32 ADR to your portfolios can decrease your overall portfolio volatility.