African Rainbow Operating Margin vs. Cash And Equivalents
| AFBOFDelisted Stock | USD 12.20 0.00 0.00% |
For African Rainbow profitability analysis, we use financial ratios and fundamental drivers that measure the ability of African Rainbow to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well African Rainbow Minerals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between African Rainbow's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of African Rainbow Minerals over time as well as its relative position and ranking within its peers.
African |
African Rainbow Minerals Cash And Equivalents vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining African Rainbow's current stock value. Our valuation model uses many indicators to compare African Rainbow value to that of its competitors to determine the firm's financial worth. African Rainbow Minerals is number one stock in operating margin category among its peers. It is rated below average in cash and equivalents category among its peers creating about 25,553,944,916 of Cash And Equivalents per Operating Margin. 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 African Rainbow's earnings, one of the primary drivers of an investment's value.African Cash And Equivalents vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
African Rainbow |
| = | 0.48 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
African Rainbow |
| = | 12.34 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
African Cash And Equivalents Comparison
African Rainbow is currently under evaluation in cash and equivalents category among its peers.
African Rainbow Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in African Rainbow, profitability is also one of the essential criteria for including it into their portfolios because, without profit, African Rainbow will eventually generate negative long term returns. The profitability progress is the general direction of African Rainbow's change in net profit over the period of time. It can combine multiple indicators of African Rainbow, 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.
African Rainbow Minerals Limited, through its subsidiaries, operates as a diversified mining and minerals company in South Africa and Malaysia. The company was founded in 1933 and is based in Sandton, South Africa. African Rainbow is traded on OTC Exchange in the United States.
African Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on African Rainbow. 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 African Rainbow 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 African Rainbow's important profitability drivers and their relationship over time.
Use African Rainbow 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 African Rainbow 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 African Rainbow will appreciate offsetting losses from the drop in the long position's value.African Rainbow Pair Trading
African Rainbow Minerals Pair Trading Analysis
The ability to find closely correlated positions to African Rainbow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace African Rainbow 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 African Rainbow - 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 African Rainbow Minerals to buy it.
The correlation of African Rainbow 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 African Rainbow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if African Rainbow Minerals 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 African Rainbow 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 African Rainbow position
In addition to having African Rainbow 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?
Run Computers Thematic Idea Now
Computers
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Computers theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Computers Theme or any other thematic opportunities.
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Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Consideration for investing in African Pink Sheet
If you are still planning to invest in African Rainbow Minerals check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the African Rainbow's history and understand the potential risks before investing.
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