PT Charoen Return On Asset vs. Return On Equity
| 0CP1 Stock | EUR 0.26 0.01 4.00% |
For PT Charoen profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PT Charoen to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PT Charoen Pokphand utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PT Charoen's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PT Charoen Pokphand over time as well as its relative position and ranking within its peers.
0CP1 |
PT Charoen Pokphand Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining PT Charoen's current stock value. Our valuation model uses many indicators to compare PT Charoen value to that of its competitors to determine the firm's financial worth. PT Charoen Pokphand is rated third in return on asset category among its peers. It is rated below average in return on equity category among its peers reporting about 1.71 of Return On Equity 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 PT Charoen's earnings, one of the primary drivers of an investment's value.0CP1 Return On Equity 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.
PT Charoen |
| = | 0.0951 |
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.
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.
PT Charoen |
| = | 0.16 |
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.
0CP1 Return On Equity Comparison
PT Charoen is rated fifth in return on equity category among its peers.
PT Charoen Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in PT Charoen, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PT Charoen will eventually generate negative long term returns. The profitability progress is the general direction of PT Charoen's change in net profit over the period of time. It can combine multiple indicators of PT Charoen, 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.
PT Charoen Pokphand Indonesia Tbk produces and sells poultry feed, day old chicks , processed chicken, and other food products in Indonesia. PT Charoen Pokphand Indonesia Tbk is a subsidiary of PT Charoen Pokphand Indonesia Group. CHAROEN POKPHAND operates under Farm Products classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6764 people.
0CP1 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on PT Charoen. 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 PT Charoen 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 PT Charoen's important profitability drivers and their relationship over time.
Use PT Charoen 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 PT Charoen 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 PT Charoen will appreciate offsetting losses from the drop in the long position's value.PT Charoen Pair Trading
PT Charoen Pokphand Pair Trading Analysis
The ability to find closely correlated positions to PT Charoen could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PT Charoen 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 PT Charoen - 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 PT Charoen Pokphand to buy it.
The correlation of PT Charoen 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 PT Charoen moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PT Charoen Pokphand 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 PT Charoen 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 PT Charoen position
In addition to having PT Charoen 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?
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Other Information on Investing in 0CP1 Stock
To fully project PT Charoen's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PT Charoen Pokphand 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 PT Charoen's income statement, its balance sheet, and the statement of cash flows.