Tata Consultancy Total Debt vs. Cash And Equivalents
| TCS Stock | 4,245 171.75 4.22% |
For Tata Consultancy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tata Consultancy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tata Consultancy Services utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tata Consultancy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tata Consultancy Services over time as well as its relative position and ranking within its peers.
Tata |
Tata Consultancy Services Cash And Equivalents vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Tata Consultancy's current stock value. Our valuation model uses many indicators to compare Tata Consultancy value to that of its competitors to determine the firm's financial worth. Tata Consultancy Services is currently regarded number one company in total debt category among its peers. It also is currently regarded as top stock in cash and equivalents category among its peers creating about 1.38 of Cash And Equivalents per Total Debt. At present, Tata Consultancy's Cash And Equivalents is projected to decrease 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 Consultancy's earnings, one of the primary drivers of an investment's value.Tata Total Debt vs. Competition
Tata Consultancy Services is currently regarded number one company in total debt category among its peers. Total debt of Information Technology industry is at this time estimated at about 106.13 Billion. Tata Consultancy totals roughly 80.21 Billion in total debt claiming about 76% of equities under Information Technology industry.
Tata Cash And Equivalents 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.
Tata Consultancy |
| = | 80.21 B |
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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Tata Consultancy |
| = | 110.32 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Tata Cash And Equivalents Comparison
Tata Consultancy is currently under evaluation in cash and equivalents category among its peers.
Tata Consultancy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Tata Consultancy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tata Consultancy will eventually generate negative long term returns. The profitability progress is the general direction of Tata Consultancy's change in net profit over the period of time. It can combine multiple indicators of Tata Consultancy, 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 | 37 B | 38.9 B | |
| Operating Income | 935.3 B | 982 B | |
| Income Before Tax | 620 B | 651 B | |
| Total Other Income Expense Net | -315.3 B | -299.5 B | |
| Net Income Applicable To Common Shares | 484.7 B | 508.9 B | |
| Net Income | 459.1 B | 238.3 B | |
| Income Tax Expense | 159 B | 166.9 B | |
| Net Income From Continuing Ops | 461 B | 339.4 B | |
| Interest Income | 37.8 B | 23.1 B | |
| Net Interest Income | -7.8 B | -7.4 B | |
| Change To Netincome | -2.4 B | -2.6 B |
Tata Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Tata Consultancy. 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 Consultancy 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 Consultancy's important profitability drivers and their relationship over time.
Use Tata Consultancy 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 Consultancy 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 Consultancy will appreciate offsetting losses from the drop in the long position's value.Tata Consultancy Pair Trading
Tata Consultancy Services Pair Trading Analysis
The ability to find closely correlated positions to Tata Consultancy 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 Consultancy 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 Consultancy - 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 Consultancy Services to buy it.
The correlation of Tata Consultancy 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 Consultancy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tata Consultancy Services 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 Consultancy 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 Consultancy position
In addition to having Tata Consultancy 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 Petroleum and Natural Gas Thematic Idea Now
Petroleum and Natural Gas
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas 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 Petroleum and Natural Gas Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in Tata Stock
To fully project Tata Consultancy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tata Consultancy Services 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 Consultancy's income statement, its balance sheet, and the statement of cash flows.