General Motors Return On Equity vs. EBITDA
| 0R0E Stock | 52.70 0.90 1.74% |
For General Motors profitability analysis, we use financial ratios and fundamental drivers that measure the ability of General Motors to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well General Motors Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between General Motors's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of General Motors Co over time as well as its relative position and ranking within its peers.
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General Motors EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining General Motors's current stock value. Our valuation model uses many indicators to compare General Motors value to that of its competitors to determine the firm's financial worth. General Motors Co is number one stock in return on equity category among its peers. It also is number one stock in ebitda category among its peers totaling about 129,647,144,107 of EBITDA per Return On Equity. 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 General Motors' earnings, one of the primary drivers of an investment's value.General EBITDA vs. Return On Equity
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.
General Motors |
| = | 0.14 |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
General Motors |
| = | 18.37 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
General EBITDA Comparison
General Motors is currently under evaluation in ebitda category among its peers.
General Motors Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in General Motors, profitability is also one of the essential criteria for including it into their portfolios because, without profit, General Motors will eventually generate negative long term returns. The profitability progress is the general direction of General Motors' change in net profit over the period of time. It can combine multiple indicators of General Motors, 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 | ||
| Interest Income | 1.3 B | 1.7 B | |
| Operating Income | 10.7 B | 7.6 B | |
| Income Before Tax | 14.6 B | 10.7 B | |
| Net Income Applicable To Common Shares | 10.3 B | 6.5 B | |
| Net Income | 10.1 B | 7.9 B | |
| Income Tax Expense | 2.2 B | 1.7 B | |
| Change To Netincome | -2.5 B | -2.6 B |
General Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on General Motors. 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 General Motors 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 General Motors' important profitability drivers and their relationship over time.
Use General Motors 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 General Motors 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 General Motors will appreciate offsetting losses from the drop in the long position's value.General Motors Pair Trading
General Motors Co Pair Trading Analysis
The ability to find closely correlated positions to General Motors could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace General Motors 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 General Motors - 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 General Motors Co to buy it.
The correlation of General Motors 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 General Motors moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if General Motors 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 General Motors 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 General Motors position
In addition to having General Motors 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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Education
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Additional Tools for General Stock Analysis
When running General Motors' price analysis, check to measure General Motors' 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 General Motors is operating at the current time. Most of General Motors' value examination focuses on studying past and present price action to predict the probability of General Motors' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move General Motors' price. Additionally, you may evaluate how the addition of General Motors to your portfolios can decrease your overall portfolio volatility.