Wesfarmers Return On Asset vs. Total Debt
| WES Stock | 72.06 0.43 0.60% |
For Wesfarmers profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wesfarmers to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wesfarmers utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wesfarmers's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wesfarmers over time as well as its relative position and ranking within its peers.
Wesfarmers |
Wesfarmers Total Debt vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Wesfarmers's current stock value. Our valuation model uses many indicators to compare Wesfarmers value to that of its competitors to determine the firm's financial worth. Wesfarmers is rated first in return on asset category among its peers. It is rated first in total debt category among its peers making up about 126,293,393,057 of Total Debt per Return On Asset. 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 Wesfarmers' earnings, one of the primary drivers of an investment's value.Wesfarmers Total Debt 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.
Wesfarmers |
| = | 0.0893 |
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.
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.
Wesfarmers |
| = | 11.28 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.
Wesfarmers Total Debt vs Competition
Wesfarmers is rated first in total debt category among its peers. Total debt of Consumer Discretionary industry is at this time estimated at about 12.41 Billion. Wesfarmers totals roughly 11.28 Billion in total debt claiming about 91% of stocks in Consumer Discretionary industry.
Wesfarmers Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Wesfarmers, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wesfarmers will eventually generate negative long term returns. The profitability progress is the general direction of Wesfarmers' change in net profit over the period of time. It can combine multiple indicators of Wesfarmers, 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 | -6.2 B | -5.9 B | |
| Operating Income | 3.7 B | 1.9 B | |
| Income Before Tax | 3.6 B | 3.7 B | |
| Total Other Income Expense Net | -155 M | -162.8 M | |
| Net Income | 2.6 B | 2.7 B | |
| Income Tax Expense | 1 B | 640.1 M | |
| Net Income Applicable To Common Shares | 2.8 B | 1.8 B | |
| Net Income From Continuing Ops | 2.6 B | 2.3 B | |
| Interest Income | 28 M | 26.6 M | |
| Net Interest Income | -374 M | -392.7 M | |
| Change To Netincome | 54.9 M | 57.6 M |
Wesfarmers Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Wesfarmers. 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 Wesfarmers 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 Wesfarmers' important profitability drivers and their relationship over time.
Use Wesfarmers 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 Wesfarmers 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 Wesfarmers will appreciate offsetting losses from the drop in the long position's value.Wesfarmers Pair Trading
Wesfarmers Pair Trading Analysis
The ability to find closely correlated positions to Wesfarmers could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wesfarmers 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 Wesfarmers - 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 Wesfarmers to buy it.
The correlation of Wesfarmers 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 Wesfarmers moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wesfarmers 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 Wesfarmers 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 Wesfarmers position
In addition to having Wesfarmers 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 Pharmaceutical Products Thematic Idea Now
Pharmaceutical Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Pharmaceutical Products 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 Pharmaceutical Products Theme or any other thematic opportunities.
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Additional Tools for Wesfarmers Stock Analysis
When running Wesfarmers' price analysis, check to measure Wesfarmers' 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 Wesfarmers is operating at the current time. Most of Wesfarmers' value examination focuses on studying past and present price action to predict the probability of Wesfarmers' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wesfarmers' price. Additionally, you may evaluate how the addition of Wesfarmers to your portfolios can decrease your overall portfolio volatility.