UltraTech Cement Total Debt vs. Operating Margin

ULTRACEMCO   11,857  23.05  0.19%   
Based on UltraTech Cement's profitability indicators, UltraTech Cement Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess UltraTech Cement's ability to earn profits and add value for shareholders.
For UltraTech Cement profitability analysis, we use financial ratios and fundamental drivers that measure the ability of UltraTech Cement to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well UltraTech Cement Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between UltraTech Cement's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of UltraTech Cement Limited 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 UltraTech Cement's value and its price as these two are different measures arrived at by different means. Investors typically determine if UltraTech Cement is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, UltraTech Cement's 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.

UltraTech Cement Operating Margin vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining UltraTech Cement's current stock value. Our valuation model uses many indicators to compare UltraTech Cement value to that of its competitors to determine the firm's financial worth.
UltraTech Cement Limited is rated first in total debt category among its peers. It is rated first in operating margin category among its peers . The ratio of Total Debt to Operating Margin for UltraTech Cement Limited is about  1,599,291,725,105 . 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 UltraTech Cement's earnings, one of the primary drivers of an investment's value.

UltraTech Total Debt vs. Competition

UltraTech Cement Limited is rated first in total debt category among its peers. Total debt of Materials industry is at this time estimated at about 223.75 Billion. UltraTech Cement totals roughly 114.03 Billion in total debt claiming about 51% of all equities under Materials industry.
Total debt  Revenue  Capitalization  Valuation  Workforce

UltraTech Operating Margin 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.

UltraTech Cement

Total Debt

 = 

Bonds

+

Notes

 = 
114.03 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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

UltraTech Cement

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.07 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

UltraTech Operating Margin Comparison

UltraTech Cement is currently under evaluation in operating margin category among its peers.

UltraTech Cement Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in UltraTech Cement, profitability is also one of the essential criteria for including it into their portfolios because, without profit, UltraTech Cement will eventually generate negative long term returns. The profitability progress is the general direction of UltraTech Cement's change in net profit over the period of time. It can combine multiple indicators of UltraTech Cement, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income5.4 B5.2 B
Operating Income217.3 B228.1 B
Income Before Tax94.2 B98.9 B
Total Other Income Expense Net-123 B-116.9 B
Net Income70 B38.8 B
Income Tax Expense24.2 B25.4 B
Net Income From Continuing Ops70 B44.5 B
Net Income Applicable To Common Shares58.2 B41.5 B
Interest Income9.4 B10.6 B
Net Interest Income-9.7 B-10.2 B
Change To Netincome-3.1 B-2.9 B

UltraTech Profitability Driver Comparison

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

Use UltraTech Cement 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 UltraTech Cement 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 UltraTech Cement will appreciate offsetting losses from the drop in the long position's value.

UltraTech Cement Pair Trading

UltraTech Cement Limited Pair Trading Analysis

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

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Munis Funds Theme
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Other Information on Investing in UltraTech Stock

To fully project UltraTech Cement's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of UltraTech Cement 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 UltraTech Cement's income statement, its balance sheet, and the statement of cash flows.
Potential UltraTech Cement investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although UltraTech Cement investors may work on each financial statement separately, they are all related. The changes in UltraTech Cement's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on UltraTech Cement'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.