Daikin IndustriesLtd Return On Equity vs. Total Debt
| DKILF Stock | USD 110.16 5.96 5.13% |
For Daikin IndustriesLtd profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Daikin IndustriesLtd to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Daikin IndustriesLtd utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Daikin IndustriesLtd's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Daikin IndustriesLtd over time as well as its relative position and ranking within its peers.
Daikin |
Daikin IndustriesLtd Total Debt vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Daikin IndustriesLtd's current stock value. Our valuation model uses many indicators to compare Daikin IndustriesLtd value to that of its competitors to determine the firm's financial worth. Daikin IndustriesLtd is one of the top stocks in return on equity category among its peers. It also is rated as one of the top companies in total debt category among its peers making up about 2,074,251,592,357 of Total Debt per Return On Equity. 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 Daikin IndustriesLtd's earnings, one of the primary drivers of an investment's value.Daikin Total Debt 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.
Daikin IndustriesLtd |
| = | 0.13 |
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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Daikin IndustriesLtd |
| = | 260.53 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Daikin Total Debt vs Competition
Daikin IndustriesLtd is rated as one of the top companies in total debt category among its peers. Total debt of Building Products & Equipment industry is currently estimated at about 291.01 Billion. Daikin IndustriesLtd totals roughly 260.53 Billion in total debt claiming about 90% of stocks in Building Products & Equipment industry.
Daikin IndustriesLtd Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Daikin IndustriesLtd, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Daikin IndustriesLtd will eventually generate negative long term returns. The profitability progress is the general direction of Daikin IndustriesLtd's change in net profit over the period of time. It can combine multiple indicators of Daikin IndustriesLtd, 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.
Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan. Daikin Inds operates under Building Products Equipment classification in the United States and is traded on OTC Exchange. It employs 88698 people.
Daikin Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Daikin IndustriesLtd. 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 Daikin IndustriesLtd 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 Daikin IndustriesLtd's important profitability drivers and their relationship over time.
Use Daikin IndustriesLtd 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 Daikin IndustriesLtd 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 Daikin IndustriesLtd will appreciate offsetting losses from the drop in the long position's value.Daikin IndustriesLtd Pair Trading
Daikin IndustriesLtd Pair Trading Analysis
The ability to find closely correlated positions to Daikin IndustriesLtd could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Daikin IndustriesLtd 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 Daikin IndustriesLtd - 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 Daikin IndustriesLtd to buy it.
The correlation of Daikin IndustriesLtd 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 Daikin IndustriesLtd moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Daikin IndustriesLtd 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 Daikin IndustriesLtd 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 Daikin IndustriesLtd position
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Other Information on Investing in Daikin Pink Sheet
To fully project Daikin IndustriesLtd's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Daikin IndustriesLtd 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 Daikin IndustriesLtd's income statement, its balance sheet, and the statement of cash flows.