Pearson Net Invested Capital vs Net Debt Analysis

PSO Stock

USD 15.61 0.12 0.77%

Pearson PLC financial indicator trend analysis is much more than just breaking down Pearson PLC ADR prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Pearson PLC ADR is a good investment. Please check the relationship between Pearson PLC Net Invested Capital and its Net Debt accounts. Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pearson PLC ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.

Net Invested Capital vs Net Debt

Net Invested Capital vs Net Debt Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Pearson PLC ADR Net Invested Capital account and Net Debt. At this time, the significance of the direction appears to have weak contrarian relationship.

The correlation between Pearson PLC's Net Invested Capital and Net Debt is -0.15. Overlapping area represents the amount of variation of Net Invested Capital that can explain the historical movement of Net Debt in the same time period over historical financial statements of Pearson PLC ADR, assuming nothing else is changed. The correlation between historical values of Pearson PLC's Net Invested Capital and Net Debt is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Invested Capital of Pearson PLC ADR are associated (or correlated) with its Net Debt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Debt has no effect on the direction of Net Invested Capital i.e., Pearson PLC's Net Invested Capital and Net Debt go up and down completely randomly.

Correlation Coefficient

-0.15

Relationship Direction	Negative
Relationship Strength	Insignificant

View All Relationships

Net Invested Capital

The total amount of capital invested in a company, including both equity and debt, minus any cash or cash equivalents.

Net Debt

The total debt of a company minus its cash and cash equivalents. It represents the actual debt burden on the company after accounting for the liquid assets it holds.

Most indicators from Pearson PLC's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Pearson PLC ADR 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 Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pearson PLC ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.

At this time, Pearson PLC's Selling General Administrative is very stable compared to the past year. As of the 29th of November 2024, Tax Provision is likely to grow to about 118.7 M, while Issuance Of Capital Stock is likely to drop about 7.5 M.

	2021	2022	2023	2024 (projected)
Interest Expense	68M	69M	61M	72.9M
Depreciation And Amortization	518M	551M	543M	570.2M

Interest Expense Depreciation And Amortization

Pearson PLC fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Common Stock Shares Outstanding	Short Term Investments	Non Current Liabilities Total	Inventory	Other Stockholder Equity	Total Liab	Total Current Assets	Short Term Debt	Common Stock	Intangible Assets	Other Liab	Current Deferred Revenue	Long Term Debt
Total Assets		0.85	-0.3	0.89	0.97	0.2	0.59	0.8	0.82	0.7	0.98	0.03	0.7	0.87	-0.31	0.91	0.52	0.79	0.97	0.86	0.56	0.87	0.15	0.53	-0.27	0.22
Short Long Term Debt Total	0.85		-0.45	0.64	0.77	0.33	0.8	0.73	0.75	0.55	0.88	-0.25	0.55	0.68	-0.21	0.91	0.43	0.51	0.88	0.61	0.61	0.67	0.06	0.47	-0.29	0.42
Other Current Liab	-0.3	-0.45		-0.07	-0.2	-0.2	-0.41	-0.44	-0.65	-0.3	-0.36	0.79	-0.31	0.01	0.52	-0.5	-0.61	0.06	-0.37	-0.09	-0.29	0.03	-0.4	-0.36	-0.43	-0.69
Total Current Liabilities	0.89	0.64	-0.07		0.85	0.1	0.48	0.62	0.73	0.49	0.85	0.23	0.49	0.89	-0.3	0.71	0.38	0.88	0.87	0.82	0.47	0.88	0.02	0.28	-0.2	0.08
Total Stockholder Equity	0.97	0.77	-0.2	0.85		0.2	0.52	0.81	0.69	0.65	0.95	0.11	0.65	0.85	-0.21	0.79	0.43	0.75	0.87	0.82	0.58	0.87	0.12	0.54	-0.28	0.11
Property Plant And Equipment Net	0.2	0.33	-0.2	0.1	0.2		0.32	0.06	0.01	0.24	0.13	-0.26	0.24	0.29	0.22	0.21	0.11	0.07	0.18	0.31	0.2	0.32	0.01	-0.08	0.21	-0.13
Net Debt	0.59	0.8	-0.41	0.48	0.52	0.32		0.5	0.51	0.03	0.67	-0.28	0.03	0.51	-0.22	0.63	0.2	0.27	0.62	0.28	0.59	0.48	-0.13	0.1	0.02	0.35
Retained Earnings	0.8	0.73	-0.44	0.62	0.81	0.06	0.5		0.73	0.53	0.87	-0.26	0.54	0.49	-0.41	0.74	0.64	0.34	0.75	0.5	0.69	0.48	0.38	0.68	-0.18	0.53
Accounts Payable	0.82	0.75	-0.65	0.73	0.69	0.01	0.51	0.73		0.61	0.84	-0.3	0.61	0.57	-0.61	0.88	0.74	0.62	0.89	0.62	0.43	0.55	0.38	0.5	-0.03	0.59
Cash	0.7	0.55	-0.3	0.49	0.65	0.24	0.03	0.53	0.61		0.59	-0.12	1.0	0.53	-0.08	0.74	0.51	0.55	0.7	0.8	0.28	0.56	0.26	0.63	-0.35	0.12
Non Current Assets Total	0.98	0.88	-0.36	0.85	0.95	0.13	0.67	0.87	0.84	0.59		-0.06	0.59	0.79	-0.36	0.89	0.55	0.69	0.94	0.73	0.64	0.79	0.19	0.54	-0.26	0.35
Non Currrent Assets Other	0.03	-0.25	0.79	0.23	0.11	-0.26	-0.28	-0.26	-0.3	-0.12	-0.06		-0.12	0.39	0.22	-0.21	-0.49	0.44	-0.06	0.22	-0.38	0.38	-0.34	-0.13	-0.37	-0.74
Cash And Short Term Investments	0.7	0.55	-0.31	0.49	0.65	0.24	0.03	0.54	0.61	1.0	0.59	-0.12		0.53	-0.09	0.74	0.51	0.55	0.7	0.8	0.28	0.55	0.26	0.64	-0.35	0.13
Common Stock Shares Outstanding	0.87	0.68	0.01	0.89	0.85	0.29	0.51	0.49	0.57	0.53	0.79	0.39	0.53		-0.07	0.71	0.16	0.88	0.83	0.88	0.33	0.99	-0.11	0.27	-0.3	-0.21
Short Term Investments	-0.31	-0.21	0.52	-0.3	-0.21	0.22	-0.22	-0.41	-0.61	-0.08	-0.36	0.22	-0.09	-0.07		-0.4	-0.63	-0.24	-0.39	-0.12	-0.04	-0.03	-0.35	-0.37	-0.42	-0.61
Non Current Liabilities Total	0.91	0.91	-0.5	0.71	0.79	0.21	0.63	0.74	0.88	0.74	0.89	-0.21	0.74	0.71	-0.4		0.62	0.65	0.96	0.76	0.46	0.69	0.22	0.56	-0.23	0.42
Inventory	0.52	0.43	-0.61	0.38	0.43	0.11	0.2	0.64	0.74	0.51	0.55	-0.49	0.51	0.16	-0.63	0.62		0.28	0.57	0.36	0.2	0.17	0.82	0.34	0.17	0.7
Other Stockholder Equity	0.79	0.51	0.06	0.88	0.75	0.07	0.27	0.34	0.62	0.55	0.69	0.44	0.55	0.88	-0.24	0.65	0.28		0.78	0.86	0.12	0.89	0.0	0.21	-0.25	-0.13
Total Liab	0.97	0.88	-0.37	0.87	0.87	0.18	0.62	0.75	0.89	0.7	0.94	-0.06	0.7	0.83	-0.39	0.96	0.57	0.78		0.84	0.5	0.81	0.16	0.5	-0.24	0.32
Total Current Assets	0.86	0.61	-0.09	0.82	0.82	0.31	0.28	0.5	0.62	0.8	0.73	0.22	0.8	0.88	-0.12	0.76	0.36	0.86	0.84		0.25	0.89	0.02	0.42	-0.23	-0.12
Short Term Debt	0.56	0.61	-0.29	0.47	0.58	0.2	0.59	0.69	0.43	0.28	0.64	-0.38	0.28	0.33	-0.04	0.46	0.2	0.12	0.5	0.25		0.35	-0.13	0.39	-0.23	0.38
Common Stock	0.87	0.67	0.03	0.88	0.87	0.32	0.48	0.48	0.55	0.56	0.79	0.38	0.55	0.99	-0.03	0.69	0.17	0.89	0.81	0.89	0.35		-0.1	0.25	-0.3	-0.23
Intangible Assets	0.15	0.06	-0.4	0.02	0.12	0.01	-0.13	0.38	0.38	0.26	0.19	-0.34	0.26	-0.11	-0.35	0.22	0.82	0.0	0.16	0.02	-0.13	-0.1		0.04	0.11	0.46
Other Liab	0.53	0.47	-0.36	0.28	0.54	-0.08	0.1	0.68	0.5	0.63	0.54	-0.13	0.64	0.27	-0.37	0.56	0.34	0.21	0.5	0.42	0.39	0.25	0.04		-0.17	0.32
Current Deferred Revenue	-0.27	-0.29	-0.43	-0.2	-0.28	0.21	0.02	-0.18	-0.03	-0.35	-0.26	-0.37	-0.35	-0.3	-0.42	-0.23	0.17	-0.25	-0.24	-0.23	-0.23	-0.3	0.11	-0.17		0.17
Long Term Debt	0.22	0.42	-0.69	0.08	0.11	-0.13	0.35	0.53	0.59	0.12	0.35	-0.74	0.13	-0.21	-0.61	0.42	0.7	-0.13	0.32	-0.12	0.38	-0.23	0.46	0.32	0.17

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Pearson PLC Account Relationship Matchups

Pearson PLC fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	7.7B	7.5B	7.3B	7.3B	6.7B	6.8B
Short Long Term Debt Total	1.7B	1.7B	1.4B	1.2B	1.2B	1.7B
Other Current Liab	265M	955M	615M	651M	983M	1.0B
Total Current Liabilities	1.5B	1.6B	1.6B	1.5B	1.4B	1.5B
Total Stockholder Equity	4.3B	4.1B	4.3B	4.4B	4.0B	3.3B
Property Plant And Equipment Net	618M	515M	366M	250M	217M	329.9M
Net Debt	1.2B	554M	463M	672M	849M	1.0B
Retained Earnings	911M	865M	1.0B	881M	745M	1.2B
Accounts Payable	358M	340M	351M	348M	317M	301.2M
Cash	437M	1.1B	937M	543M	312M	296.4M
Non Current Assets Total	4.5B	4.1B	4.1B	4.5B	4.3B	4.2B
Non Currrent Assets Other	436M	426M	649M	639M	819M	860.0M
Cash And Short Term Investments	437M	1.1B	937M	543M	312M	296.4M
Common Stock Shares Outstanding	777.5M	755.4M	759.1M	742M	717.3M	783.7M
Short Term Investments	61M	516M	277M	289M	234M	245.7M
Liabilities And Stockholders Equity	7.7B	7.5B	7.3B	7.3B	6.7B	6.8B
Non Current Liabilities Total	1.8B	1.7B	1.5B	1.4B	1.3B	1.9B
Inventory	169M	129M	98M	105M	91M	86.5M
Other Stockholder Equity	2.6B	2.6B	2.6B	2.6B	2.6B	2.2B
Total Liab	3.3B	3.3B	3.1B	2.9B	2.7B	3.4B
Total Current Assets	3.2B	3.3B	3.2B	2.8B	2.4B	2.6B
Short Term Debt	92M	266M	159M	97M	67M	63.7M
Intangible Assets	761M	648M	624M	697M	657M	624.2M
Other Liab	239M	235M	208M	232M	266.8M	253.5M
Current Deferred Revenue	777M	(20M)	(35M)	340M	5M	4.8M
Long Term Debt	823M	787M	680M	539M	611M	580.5M
Net Receivables	1.7B	927M	1.1B	947M	725M	1.3B
Good Will	2.1B	2.1B	2.1B	2.5B	2.4B	3.4B
Other Current Assets	870M	1.3B	1.3B	1.3B	1.3B	825.1M
Accumulated Other Comprehensive Income	617M	459M	400M	724M	432M	453.6M
Property Plant Equipment	618M	515M	366M	310M	279M	468.6M
Other Assets	830M	710M	850M	697M	627.3M	752.4M
Property Plant And Equipment Gross	760M	515M	975M	816M	753M	575.9M
Treasury Stock	(33M)	(24M)	(7M)	(12M)	(13.8M)	(14.5M)
Net Tangible Assets	1.4B	1.4B	1.5B	1.2B	1.4B	1.6B
Short Long Term Debt	43M	3M	254M	87M	71M	2.9M
Long Term Debt Total	1.6B	1.4B	1.2B	1.1B	1.0B	1.3B

Pair Trading with Pearson PLC

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 Pearson PLC 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 Pearson PLC will appreciate offsetting losses from the drop in the long position's value.

Moving against Pearson Stock

0.71	DLPN	Dolphin Entertainment	Pair Corr
0.48	DRCT	Direct Digital Holdings	Pair Corr
0.47	ADD	Color Star Technology Downward Rally	Pair Corr
0.39	WIMI	WiMi Hologram Cloud	Pair Corr
0.34	IQ	iQIYI Inc Buyout Trend	Pair Corr

The ability to find closely correlated positions to Pearson PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pearson PLC 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 Pearson PLC - 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 Pearson PLC ADR to buy it.

The correlation of Pearson PLC 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 Pearson PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pearson PLC ADR 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 Pearson PLC 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 Correlation Correlation Matching

When determining whether Pearson PLC ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Pearson PLC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Pearson Plc Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Pearson Plc Adr Stock:

How To Invest In Pearson

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Is Pearson Stock a good investment?

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What is Pearson PLC's Net Worth?

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Largest Publishing Companies

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Largest Media & Entertainment Companies

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Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pearson PLC ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.

You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Is Publishing space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pearson PLC. If investors know Pearson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pearson PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.12)

Dividend Share

0.231

Earnings Share

0.62

Revenue Per Share

5.108

Quarterly Revenue Growth

(0.07)

The market value of Pearson PLC ADR is measured differently than its book value, which is the value of Pearson that is recorded on the company's balance sheet. Investors also form their own opinion of Pearson PLC's value that differs from its market value or its book value, called intrinsic value, which is Pearson PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pearson PLC's market value can be influenced by many factors that don't directly affect Pearson PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Pearson PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pearson PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pearson PLC'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.

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Pearson Net Invested Capital vs Net Debt Analysis

Net Invested Capital vs Net Debt

Net Invested Capital vs Net Debt Correlation Analysis

Correlation Coefficient

Net Invested Capital

Net Debt

Pearson PLC fundamental ratios Correlations

Pearson PLC Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Pearson PLC fundamental ratios Accounts

Pair Trading with Pearson PLC

Moving against Pearson Stock

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Cash And Short Term Investments	+ 1.0	Cash
Common Stock	+ 0.99	Common Stock Shares Outstanding
Non Current Assets Total	+ 0.98	Total Assets
Total Stockholder Equity	+ 0.97	Total Assets
Total Liab	+ 0.97	Total Assets
Total Liab	+ 0.96	Non Current Liabilities Total

Long Term Debt	- 0.74	Non Currrent Assets Other
Long Term Debt	- 0.69	Other Current Liab
Accounts Payable	- 0.65	Other Current Liab
Inventory	- 0.63	Short Term Investments
Long Term Debt	- 0.61	Short Term Investments
Short Term Investments	- 0.61	Accounts Payable