Borr Drilling Net Income vs. Return On Equity
| BORR Stock | NOK 42.00 0.58 1.40% |
For Borr Drilling profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Borr Drilling to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Borr Drilling utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Borr Drilling's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Borr Drilling over time as well as its relative position and ranking within its peers.
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Borr Drilling Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Borr Drilling's current stock value. Our valuation model uses many indicators to compare Borr Drilling value to that of its competitors to determine the firm's financial worth. Borr Drilling is number one stock in net income category among its peers. It also is number one stock in return on equity 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 Borr Drilling's earnings, one of the primary drivers of an investment's value.Borr Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Borr Drilling |
| = | (193 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Borr Drilling |
| = | -0.34 |
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.
Borr Return On Equity Comparison
Borr Drilling is currently under evaluation in return on equity category among its peers.
Borr Drilling Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Borr Drilling, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Borr Drilling will eventually generate negative long term returns. The profitability progress is the general direction of Borr Drilling's change in net profit over the period of time. It can combine multiple indicators of Borr Drilling, 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.
Borr Drilling Limited operates as an offshore drilling contractor to the oil and gas industry worldwide. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda. BORR DRILLING operates under Oil Gas Drilling classification in Norway and is traded on Oslo Stock Exchange. It employs 418 people.
Borr Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Borr Drilling. 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 Borr Drilling 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 Borr Drilling's important profitability drivers and their relationship over time.
Use Borr Drilling 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 Borr Drilling 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 Borr Drilling will appreciate offsetting losses from the drop in the long position's value.Borr Drilling Pair Trading
Borr Drilling Pair Trading Analysis
The ability to find closely correlated positions to Borr Drilling could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Borr Drilling 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 Borr Drilling - 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 Borr Drilling to buy it.
The correlation of Borr Drilling 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 Borr Drilling moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Borr Drilling 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 Borr Drilling 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 Borr Drilling position
In addition to having Borr Drilling 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 Money Market Funds Thematic Idea Now
Money Market Funds
Funds or Etfs investing in various types of short-term (less than one year) fixed income instruments of high-quality and liquidity. The Money Market Funds theme has 45 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 Money Market Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Borr Stock
When determining whether Borr Drilling is a strong investment it is important to analyze Borr Drilling's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Borr Drilling's future performance. For an informed investment choice regarding Borr Stock, refer to the following important reports:Check out Trending Equities. For more information on how to buy Borr Stock please use our How to buy in Borr Stock guide.You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
To fully project Borr Drilling's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Borr Drilling 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 Borr Drilling's income statement, its balance sheet, and the statement of cash flows.