ACME Lithium Return On Equity vs. EBITDA

ACLHF Stock  USD 0.03  0  14.55%   
Taking into consideration ACME Lithium's profitability measurements, ACME Lithium may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess ACME Lithium's ability to earn profits and add value for shareholders.
For ACME Lithium profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ACME Lithium to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ACME Lithium utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ACME Lithium's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ACME Lithium over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between ACME Lithium's value and its price as these two are different measures arrived at by different means. Investors typically determine if ACME Lithium is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ACME Lithium'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.

ACME Lithium EBITDA vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ACME Lithium's current stock value. Our valuation model uses many indicators to compare ACME Lithium value to that of its competitors to determine the firm's financial worth.
ACME Lithium is rated below average in return on equity category among its peers. It is rated below average in ebitda category among its peers . 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 ACME Lithium's earnings, one of the primary drivers of an investment's value.

ACME 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.

ACME Lithium

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.42
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.

ACME Lithium

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(3.51 M)
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.

ACME EBITDA Comparison

ACME Lithium is currently under evaluation in ebitda category among its peers.

ACME Lithium Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ACME Lithium, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ACME Lithium will eventually generate negative long term returns. The profitability progress is the general direction of ACME Lithium's change in net profit over the period of time. It can combine multiple indicators of ACME Lithium, 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.
ACME Lithium Inc., a mineral exploration company, engages in acquiring, exploring, and evaluating lithium properties in the United States. The company was incorporated in 2017 and is based in Vancouver, Canada. Acme Lithium is traded on OTC Exchange in the United States.

ACME Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ACME Lithium. 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 ACME Lithium 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 ACME Lithium's important profitability drivers and their relationship over time.

Use ACME Lithium 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 ACME Lithium 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 ACME Lithium will appreciate offsetting losses from the drop in the long position's value.

ACME Lithium Pair Trading

ACME Lithium Pair Trading Analysis

The ability to find closely correlated positions to ACME Lithium could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ACME Lithium 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 ACME Lithium - 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 ACME Lithium to buy it.
The correlation of ACME Lithium 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 ACME Lithium moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ACME Lithium 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 ACME Lithium 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 CorrelationCorrelation Matching

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Other Information on Investing in ACME OTC Stock

To fully project ACME Lithium's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ACME Lithium 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 ACME Lithium's income statement, its balance sheet, and the statement of cash flows.
Potential ACME Lithium investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although ACME Lithium investors may work on each financial statement separately, they are all related. The changes in ACME Lithium's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ACME Lithium's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.