Coal India financial indicator trend analysis is way more than just evaluating Coal India Limited prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Coal India Limited is a good investment. Please check the relationship between Coal India Capital Expenditures and its Depreciation accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Coal India Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
Capital Expenditures vs Depreciation
Capital Expenditures vs Depreciation Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Coal India Limited Capital Expenditures account and Depreciation. At this time, the significance of the direction appears to have almost identical trend.
The correlation between Coal India's Capital Expenditures and Depreciation is 0.95. Overlapping area represents the amount of variation of Capital Expenditures that can explain the historical movement of Depreciation in the same time period over historical financial statements of Coal India Limited, assuming nothing else is changed. The correlation between historical values of Coal India's Capital Expenditures and Depreciation is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Capital Expenditures of Coal India Limited are associated (or correlated) with its Depreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Depreciation has no effect on the direction of Capital Expenditures i.e., Coal India's Capital Expenditures and Depreciation go up and down completely randomly.
Capital Expenditures are funds used by Coal India Limited to acquire physical assets such as property, industrial buildings or equipment. This type of outlay is used by management to increase the scope of Coal India operations. These expenditures can include everything from repairing an office equipment, building a brand new facility, or writing new software.
Depreciation
Depreciation indicates how much of Coal India Limited value has been used up. For tax purposes Coal India can deduct the cost of the tangible assets it purchases as business expenses. However, Coal India Limited must depreciate these assets in accordance with IRS rules about how and when the deduction may be taken, and how long it will last. The systematic allocation of the cost of a tangible asset over its useful life.
Most indicators from Coal India's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Coal India Limited current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Coal India Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Balance Sheet is a snapshot of the financial position of Coal India Limited at a specified time, usually calculated after every quarter, six months, or one year. Coal India Balance Sheet has two main parts: assets and liabilities. Liabilities are the debts or obligations of Coal India and are divided into current liabilities and long term liabilities. An asset, on the other hand, is anything of value that can be converted into cash and which Coal currently owns. An asset can also be divided into two categories, current and non-current.