Toromont Industries Return On Equity vs. Return On Asset

TMTNF Stock  USD 82.79  0.26  0.32%   
Based on Toromont Industries' profitability indicators, Toromont Industries may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Toromont Industries' ability to earn profits and add value for shareholders.
For Toromont Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Toromont Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Toromont Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Toromont Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Toromont Industries over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Toromont Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if Toromont Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Toromont Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Toromont Industries Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Toromont Industries's current stock value. Our valuation model uses many indicators to compare Toromont Industries value to that of its competitors to determine the firm's financial worth.
Toromont Industries is rated second in return on equity category among its peers. It also is rated second in return on asset category among its peers reporting about  0.48  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Toromont Industries is roughly  2.07 . 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 Toromont Industries' earnings, one of the primary drivers of an investment's value.

Toromont 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.

Toromont Industries

Return On Equity

 = 

Net Income

Total Equity

 = 
0.2
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.

Toromont Industries

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0949
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.

Toromont Return On Asset Comparison

Toromont Industries is currently under evaluation in return on asset category among its peers.

Toromont Industries Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Toromont Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Toromont Industries will eventually generate negative long term returns. The profitability progress is the general direction of Toromont Industries' change in net profit over the period of time. It can combine multiple indicators of Toromont Industries, 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.
Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. Toromont Industries Ltd. was founded in 1961 and is based in Concord, Canada. Toromont Inds operates under Industrial Distribution classification in the United States and is traded on OTC Exchange. It employs 6400 people.

Toromont Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Toromont Industries. 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 Toromont Industries 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 Toromont Industries' important profitability drivers and their relationship over time.

Use Toromont Industries 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 Toromont Industries 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 Toromont Industries will appreciate offsetting losses from the drop in the long position's value.

Toromont Industries Pair Trading

Toromont Industries Pair Trading Analysis

The ability to find closely correlated positions to Toromont Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Toromont Industries 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 Toromont Industries - 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 Toromont Industries to buy it.
The correlation of Toromont Industries 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 Toromont Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Toromont Industries 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 Toromont Industries 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Toromont Industries position

In addition to having Toromont Industries 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.

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Recreation
Recreation Theme
Companies involved in production and services of recreational goods, foods, and accessories. The Recreation theme has 47 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 Recreation Theme or any other thematic opportunities.
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Other Information on Investing in Toromont Pink Sheet

To fully project Toromont Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Toromont Industries 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 Toromont Industries' income statement, its balance sheet, and the statement of cash flows.
Potential Toromont Industries investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Toromont Industries investors may work on each financial statement separately, they are all related. The changes in Toromont Industries's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Toromont Industries's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.