General Electric EBITDA vs. Total Debt
| GEOO34 Stock | BRL 1,002 14.67 1.49% |
For General Electric profitability analysis, we use financial ratios and fundamental drivers that measure the ability of General Electric to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well General Electric utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between General Electric's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of General Electric over time as well as its relative position and ranking within its peers.
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General Electric Total Debt vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining General Electric's current stock value. Our valuation model uses many indicators to compare General Electric value to that of its competitors to determine the firm's financial worth. General Electric is one of the top stocks in ebitda category among its peers. It also is rated as one of the top companies in total debt category among its peers making up about 9.47 of Total Debt per EBITDA. Comparative valuation analysis is a catch-all model that can be used if you cannot value General Electric by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for General Electric's 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.General Total Debt 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.
General Electric |
| = | 3.02 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.
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.
General Electric |
| = | 28.59 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.
General Total Debt vs Competition
General Electric is rated as one of the top companies in total debt category among its peers. Total debt of Specialty Industrial Machinery industry is currently estimated at about 14.68 Trillion. General Electric adds roughly 28.59 Billion in total debt claiming only tiny portion of equities listed under Specialty Industrial Machinery industry.
General Electric Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in General Electric, profitability is also one of the essential criteria for including it into their portfolios because, without profit, General Electric will eventually generate negative long term returns. The profitability progress is the general direction of General Electric's change in net profit over the period of time. It can combine multiple indicators of General Electric, 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.
General Electric Company operates as a high-tech industrial company worldwide. The company was founded in 1878 and is headquartered in Boston, Massachusetts. GE DRN operates under Specialty Industrial Machinery classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 174000 people.
General Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on General Electric. 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 General Electric 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 General Electric's important profitability drivers and their relationship over time.
Use General Electric 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 General Electric 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 General Electric will appreciate offsetting losses from the drop in the long position's value.General Electric Pair Trading
General Electric Pair Trading Analysis
The ability to find closely correlated positions to General Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace General Electric 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 General Electric - 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 General Electric to buy it.
The correlation of General Electric 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 General Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if General Electric 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 General Electric 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 General Electric position
In addition to having General Electric 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 Manufacturing Thematic Idea Now
Manufacturing
Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 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 Manufacturing Theme or any other thematic opportunities.
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Other Information on Investing in General Stock
To fully project General Electric's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of General Electric 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 General Electric's income statement, its balance sheet, and the statement of cash flows.