Colgate Palmolive EBITDA vs. Return On Asset
| CPA Stock | 89.22 0.36 0.40% |
For Colgate Palmolive profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Colgate Palmolive to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Colgate Palmolive utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Colgate Palmolive's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Colgate Palmolive over time as well as its relative position and ranking within its peers.
Colgate |
Colgate Palmolive Return On Asset vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Colgate Palmolive's current stock value. Our valuation model uses many indicators to compare Colgate Palmolive value to that of its competitors to determine the firm's financial worth. Colgate Palmolive is number one stock in ebitda category among its peers. It also is number one stock in return on asset category among its peers . The ratio of EBITDA to Return On Asset for Colgate Palmolive is about 19,603,825,137 . 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 Colgate Palmolive's earnings, one of the primary drivers of an investment's value.Colgate Return On Asset vs. EBITDA
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.
Colgate Palmolive |
| = | 2.87 B |
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Colgate Palmolive |
| = | 0.15 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Colgate Return On Asset Comparison
Colgate Palmolive is currently under evaluation in return on asset category among its peers.
Colgate Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Colgate Palmolive. 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 Colgate Palmolive 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 Colgate Palmolive's important profitability drivers and their relationship over time.
Use Colgate Palmolive 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 Colgate Palmolive 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 Colgate Palmolive will appreciate offsetting losses from the drop in the long position's value.Colgate Palmolive Pair Trading
Colgate Palmolive Pair Trading Analysis
The ability to find closely correlated positions to Colgate Palmolive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Colgate Palmolive 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 Colgate Palmolive - 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 Colgate Palmolive to buy it.
The correlation of Colgate Palmolive 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 Colgate Palmolive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Colgate Palmolive 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 Colgate Palmolive 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 Colgate Palmolive position
In addition to having Colgate Palmolive 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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Additional Tools for Colgate Stock Analysis
When running Colgate Palmolive's price analysis, check to measure Colgate Palmolive's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Colgate Palmolive is operating at the current time. Most of Colgate Palmolive's value examination focuses on studying past and present price action to predict the probability of Colgate Palmolive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Colgate Palmolive's price. Additionally, you may evaluate how the addition of Colgate Palmolive to your portfolios can decrease your overall portfolio volatility.