EasyJet PLC Cash And Equivalents vs. Return On Equity
| ESYJY Stock | USD 7.31 0.13 1.75% |
For EasyJet PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of EasyJet PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well EasyJet PLC ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between EasyJet PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of EasyJet PLC ADR over time as well as its relative position and ranking within its peers.
EasyJet |
EasyJet PLC ADR Return On Equity vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining EasyJet PLC's current stock value. Our valuation model uses many indicators to compare EasyJet PLC value to that of its competitors to determine the firm's financial worth. EasyJet PLC ADR is rated below average in cash and equivalents category among its peers. It is rated below average in return on equity category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value EasyJet PLC by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for EasyJet PLC's OTC Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.EasyJet Return On Equity 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.
EasyJet PLC |
| = | 3.5 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).
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.
EasyJet PLC |
| = | -0.0653 |
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.
EasyJet Return On Equity Comparison
EasyJet PLC is currently under evaluation in return on equity category among its peers.
EasyJet PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in EasyJet PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, EasyJet PLC will eventually generate negative long term returns. The profitability progress is the general direction of EasyJet PLC's change in net profit over the period of time. It can combine multiple indicators of EasyJet 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.
easyJet plc operates as an airline carrier primarily in Europe. It sells seats through its own website www.easyjet.com and its easyJet Worldwide platform, its mobile application, global distribution systems, corporate online booking tools, content aggregators, and tour operator. easyJet plc was founded in 1995 and is headquartered in Luton, the United Kingdom. Easy Jet operates under Airlines classification in the United States and is traded on OTC Exchange. It employs 13000 people.
EasyJet Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on EasyJet 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 EasyJet 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 EasyJet PLC's important profitability drivers and their relationship over time.
Use EasyJet 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 EasyJet 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 EasyJet PLC will appreciate offsetting losses from the drop in the long position's value.EasyJet PLC Pair Trading
EasyJet PLC ADR Pair Trading Analysis
The ability to find closely correlated positions to EasyJet 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 EasyJet 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 EasyJet 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 EasyJet PLC ADR to buy it.
The correlation of EasyJet 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 EasyJet PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if EasyJet 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 EasyJet 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 EasyJet PLC position
In addition to having EasyJet 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 Food Products Thematic Idea Now
Food Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Food Products theme has 61 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 Food Products Theme or any other thematic opportunities.
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Additional Tools for EasyJet OTC Stock Analysis
When running EasyJet PLC's price analysis, check to measure EasyJet PLC'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 EasyJet PLC is operating at the current time. Most of EasyJet PLC's value examination focuses on studying past and present price action to predict the probability of EasyJet PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move EasyJet PLC's price. Additionally, you may evaluate how the addition of EasyJet PLC to your portfolios can decrease your overall portfolio volatility.