Diageo PLC Cash And Equivalents vs. EBITDA
| DEO Stock | USD 126.70 2.21 1.78% |
Cash And Equivalents | First Reported 2010-12-31 | Previous Quarter 1.7 B | Current Value 2 B | Quarterly Volatility 711.6 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.46 | 0.6052 |
|
| |||||
| Net Profit Margin | 0.0524 | 0.2404 |
|
| |||||
| Operating Profit Margin | 0.15 | 0.3727 |
|
| |||||
| Pretax Profit Margin | 0.0991 | 0.249 |
|
| |||||
| Return On Assets | 0.0394 | 0.1076 |
|
| |||||
| Return On Equity | 0.11 | 0.4876 |
|
|
For Diageo PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Diageo PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Diageo PLC ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Diageo PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Diageo PLC ADR over time as well as its relative position and ranking within its peers.
Diageo |
Diageo PLC's Revenue Breakdown by Earning Segment
Check out Investing Opportunities.
Is Distillers & Vintners space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diageo PLC. If investors know Diageo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diageo PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.03) | Dividend Share 1.035 | Earnings Share 6.91 | Revenue Per Share 2.0142 | Quarterly Revenue Growth (0.01) |
The market value of Diageo PLC ADR is measured differently than its book value, which is the value of Diageo that is recorded on the company's balance sheet. Investors also form their own opinion of Diageo PLC's value that differs from its market value or its book value, called intrinsic value, which is Diageo PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diageo PLC's market value can be influenced by many factors that don't directly affect Diageo PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diageo PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diageo PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diageo PLC'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.
Diageo PLC ADR EBITDA vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Diageo PLC's current stock value. Our valuation model uses many indicators to compare Diageo PLC value to that of its competitors to determine the firm's financial worth. Diageo PLC ADR is one of the top stocks in cash and equivalents category among its peers. It also is one of the top stocks in ebitda category among its peers totaling about 3.76 of EBITDA per Cash And Equivalents. At this time, Diageo PLC's Cash And Equivalents is very 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 Diageo PLC's earnings, one of the primary drivers of an investment's value.Diageo PLC's Earnings Breakdown by Geography
Diageo EBITDA vs. Cash And Equivalents
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.
Diageo PLC |
| = | 1.44 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).
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.
Diageo PLC |
| = | 5.41 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.
Diageo EBITDA Comparison
Diageo PLC is currently under evaluation in ebitda category among its peers.
Diageo PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Diageo PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Diageo PLC will eventually generate negative long term returns. The profitability progress is the general direction of Diageo PLC's change in net profit over the period of time. It can combine multiple indicators of Diageo PLC, 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 | -91 M | -86.5 M | |
| Operating Income | 6 B | 3.1 B | |
| Income Before Tax | 4 B | 2.9 B | |
| Total Other Income Expense Net | -2 B | -1.9 B | |
| Net Income | 3.1 B | 2.3 B | |
| Income Tax Expense | 1.3 B | 655.9 M | |
| Net Income Applicable To Common Shares | 4.3 B | 2.9 B | |
| Net Income From Continuing Ops | 4.2 B | 3.2 B | |
| Interest Income | 194 M | 116.3 M | |
| Net Interest Income | -925 M | -878.8 M | |
| Change To Netincome | -691.1 M | -656.6 M | |
| Net Income Per Share | 1.73 | 0.17 | |
| Income Quality | 1.06 | 0.34 | |
| Net Income Per E B T | 0.97 | 0.53 |
Diageo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Diageo PLC. 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 Diageo PLC 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 Diageo PLC's important profitability drivers and their relationship over time.
Use Diageo PLC 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 Diageo PLC 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 Diageo PLC will appreciate offsetting losses from the drop in the long position's value.Diageo PLC Pair Trading
Diageo PLC ADR Pair Trading Analysis
The ability to find closely correlated positions to Diageo PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diageo PLC 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 Diageo PLC - 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 Diageo PLC ADR to buy it.
The correlation of Diageo PLC 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 Diageo PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diageo PLC ADR 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 Diageo PLC 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 Diageo PLC position
In addition to having Diageo PLC 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 Macroaxis Index Thematic Idea Now
Macroaxis Index
An experimental equal-weighted index theme of selected equities generated based on Macroaxis rating and scoring system. The Macroaxis Index theme has 52 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 Macroaxis Index Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Investing Opportunities. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
To fully project Diageo PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Diageo PLC ADR 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 Diageo PLC's income statement, its balance sheet, and the statement of cash flows.