Coal India Gross Profit vs. Cash And Equivalents

COALINDIA   380.50  6.10  1.58%   
Based on the key profitability measurements obtained from Coal India's financial statements, Coal India Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Coal India's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2010-06-30
Previous Quarter
150.2 B
Current Value
95 B
Quarterly Volatility
49.9 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Coal India profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Coal India to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Coal India Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Coal India's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Coal India Limited 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 Coal India's value and its price as these two are different measures arrived at by different means. Investors typically determine if Coal India is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coal India'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.

Coal India Limited Cash And Equivalents vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Coal India's current stock value. Our valuation model uses many indicators to compare Coal India value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.15SPTLNETWORK18CHOLAFINCOALINDIA 05B10B15B20B25B30B 0200B400B600B800B1T1.2T
Coal India Limited is number one stock in gross profit category among its peers. It also is number one stock in cash and equivalents category among its peers creating about  0.03  of Cash And Equivalents per Gross Profit. The ratio of Gross Profit to Cash And Equivalents for Coal India Limited is roughly  36.24 . At present, Coal India's Gross Profit is projected to increase significantly based on the last few years of reporting. 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 Coal India's earnings, one of the primary drivers of an investment's value.

Coal Cash And Equivalents vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Coal India

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.04 T
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.

Coal India

Cash

 = 

Bank Deposits

+

Liquidities

 = 
28.59 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).

Coal Cash And Equivalents Comparison

Coal India is currently under evaluation in cash and equivalents category among its peers.

Coal India Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Coal India, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Coal India will eventually generate negative long term returns. The profitability progress is the general direction of Coal India's change in net profit over the period of time. It can combine multiple indicators of Coal India, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income221.4 B232.5 B
Operating Income460.6 B483.6 B
Income Before Tax488.1 B512.5 B
Total Other Income Expense Net27.6 B29 B
Net Income488.1 B512.5 B
Income Tax Expense114.4 B60.3 B
Net Income From Continuing Ops373.7 B189.1 B
Net Income Applicable To Common Shares323.9 B167 B
Interest Income45.7 B48 B
Net Interest Income-8.2 B-7.8 B
Change To Netincome4.1 B4.3 B

Coal Profitability Driver Comparison

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

Use Coal India 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 Coal India 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 Coal India will appreciate offsetting losses from the drop in the long position's value.

Coal India Pair Trading

Coal India Limited Pair Trading Analysis

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

To fully project Coal India's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Coal India Limited 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 Coal India's income statement, its balance sheet, and the statement of cash flows.
Potential Coal India investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Coal India investors may work on each financial statement separately, they are all related. The changes in Coal India's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Coal India'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.