Tata Chemicals Return On Equity vs. Gross Profit
| TATACHEM | 1,112 7.90 0.72% |
For Tata Chemicals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tata Chemicals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tata Chemicals Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tata Chemicals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tata Chemicals Limited over time as well as its relative position and ranking within its peers.
Tata |
Tata Chemicals Gross Profit vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Tata Chemicals's current stock value. Our valuation model uses many indicators to compare Tata Chemicals value to that of its competitors to determine the firm's financial worth. Tata Chemicals Limited is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in gross profit category among its peers . At present, Tata Chemicals' Gross Profit is projected to increase significantly based on the last few years of reporting. 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 Tata Chemicals' earnings, one of the primary drivers of an investment's value.Tata Gross Profit 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.
Tata Chemicals |
| = | -0.008 |
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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Tata Chemicals |
| = | 107.36 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Tata Gross Profit Comparison
Tata Chemicals is currently under evaluation in gross profit category among its peers.
Tata Chemicals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Tata Chemicals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tata Chemicals will eventually generate negative long term returns. The profitability progress is the general direction of Tata Chemicals' change in net profit over the period of time. It can combine multiple indicators of Tata Chemicals, 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 | 111.4 B | 117 B | |
| Operating Income | 19 B | 12.9 B | |
| Income Before Tax | 8.3 B | 12.5 B | |
| Total Other Income Expense Net | -10.7 B | -11.3 B | |
| Net Income | 8.2 B | 7.8 B | |
| Income Tax Expense | 3.8 B | 2.9 B | |
| Net Income From Continuing Ops | 4.5 B | 4.3 B | |
| Net Income Applicable To Common Shares | 26.6 B | 17.3 B | |
| Interest Income | 1.4 B | 1.3 B | |
| Net Interest Income | -5.3 B | -5.6 B | |
| Change To Netincome | 4 B | 4.2 B |
Tata Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Tata Chemicals. 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 Tata Chemicals 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 Tata Chemicals' important profitability drivers and their relationship over time.
Use Tata Chemicals 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 Tata Chemicals 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 Tata Chemicals will appreciate offsetting losses from the drop in the long position's value.Tata Chemicals Pair Trading
Tata Chemicals Limited Pair Trading Analysis
The ability to find closely correlated positions to Tata Chemicals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tata Chemicals 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 Tata Chemicals - 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 Tata Chemicals Limited to buy it.
The correlation of Tata Chemicals 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 Tata Chemicals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tata Chemicals 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 Tata Chemicals 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 Tata Chemicals position
In addition to having Tata Chemicals 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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Tech Growth
Instruments that are typically traded at high earnings multiples compared to their competitors and other sectors and have been known to drive market cycles frequently. The Tech Growth theme has 66 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 Tech Growth Theme or any other thematic opportunities.
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Other Information on Investing in Tata Stock
To fully project Tata Chemicals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tata Chemicals 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 Tata Chemicals' income statement, its balance sheet, and the statement of cash flows.