Cholamandalam Financial Return On Equity vs. Net Income
| CHOLAHLDNG | 1,437 33.15 2.25% |
For Cholamandalam Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cholamandalam Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cholamandalam Financial Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cholamandalam Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cholamandalam Financial Holdings over time as well as its relative position and ranking within its peers.
Cholamandalam |
Cholamandalam Financial Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cholamandalam Financial's current stock value. Our valuation model uses many indicators to compare Cholamandalam Financial value to that of its competitors to determine the firm's financial worth. Cholamandalam Financial Holdings is rated second in return on equity category among its peers. It is rated third in net income category among its peers making up about 88,360,917,248 of Net Income per Return On Equity. At this time, Cholamandalam Financial's Net Income is quite stable compared to the past year. 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 Cholamandalam Financial's earnings, one of the primary drivers of an investment's value.Cholamandalam Net Income 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.
Cholamandalam Financial |
| = | 0.2 |
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.
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.
Cholamandalam Financial |
| = | 17.73 B |
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.
Cholamandalam Net Income Comparison
Cholamandalam Financial is currently under evaluation in net income category among its peers.
Cholamandalam Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cholamandalam Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cholamandalam Financial will eventually generate negative long term returns. The profitability progress is the general direction of Cholamandalam Financial's change in net profit over the period of time. It can combine multiple indicators of Cholamandalam Financial, 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 | ||
| Accumulated Other Comprehensive Income | 102.2 B | 107.3 B | |
| Operating Income | 122.1 B | 128.2 B | |
| Income Before Tax | 52 B | 54.6 B | |
| Total Other Income Expense Net | -70.1 B | -66.6 B | |
| Net Income | 17.7 B | 11.7 B | |
| Income Tax Expense | 13.6 B | 14.3 B | |
| Interest Income | 2.8 B | 2.6 B | |
| Net Income From Continuing Ops | 38.5 B | 40.4 B | |
| Net Income Applicable To Common Shares | 14.8 B | 8.8 B | |
| Net Interest Income | -21.1 B | -20 B | |
| Change To Netincome | 23.5 B | 17.3 B |
Cholamandalam Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cholamandalam Financial. 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 Cholamandalam Financial 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 Cholamandalam Financial's important profitability drivers and their relationship over time.
Use Cholamandalam Financial 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 Cholamandalam Financial 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 Cholamandalam Financial will appreciate offsetting losses from the drop in the long position's value.Cholamandalam Financial Pair Trading
Cholamandalam Financial Holdings Pair Trading Analysis
The ability to find closely correlated positions to Cholamandalam Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cholamandalam Financial 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 Cholamandalam Financial - 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 Cholamandalam Financial Holdings to buy it.
The correlation of Cholamandalam Financial 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 Cholamandalam Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cholamandalam Financial 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 Cholamandalam Financial 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 Cholamandalam Financial position
In addition to having Cholamandalam Financial 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 Cholamandalam Stock
To fully project Cholamandalam Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cholamandalam Financial 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 Cholamandalam Financial's income statement, its balance sheet, and the statement of cash flows.