Imperial Oil Revenue vs. Return On Equity

IMO Stock  CAD 97.03  6.99  6.72%   
Taking into consideration Imperial Oil's profitability measurements, Imperial Oil may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Imperial Oil's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
1985-09-30
Previous Quarter
12.7 B
Current Value
12.6 B
Quarterly Volatility
3.2 B
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 13th of December 2024, Price To Sales Ratio is likely to grow to 0.90. Also, Days Sales Outstanding is likely to grow to 36.66. At this time, Imperial Oil's Operating Income is very stable compared to the past year. As of the 13th of December 2024, Income Before Tax is likely to grow to about 6.7 B, while Accumulated Other Comprehensive Income is likely to drop (710.9 M).
For Imperial Oil profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Imperial Oil to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Imperial Oil utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Imperial Oil's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Imperial Oil over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
To learn how to invest in Imperial Stock, please use our How to Invest in Imperial Oil guide.
Please note, there is a significant difference between Imperial Oil's value and its price as these two are different measures arrived at by different means. Investors typically determine if Imperial Oil is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Imperial Oil'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.

Imperial Oil Return On Equity vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Imperial Oil's current stock value. Our valuation model uses many indicators to compare Imperial Oil value to that of its competitors to determine the firm's financial worth.
Imperial Oil is rated fourth overall in revenue category among its peers. It is currently regarded as number one stock in return on equity category among its peers . The ratio of Revenue to Return On Equity for Imperial Oil is about  232,435,033,686 . At this time, Imperial Oil's Total Revenue is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Imperial Oil by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Imperial Oil'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.

Imperial Revenue vs. Competition

Imperial Oil is rated fourth overall in revenue category among its peers. Market size based on revenue of Energy industry is currently estimated at about 214.05 Billion. Imperial Oil totals roughly 48.3 Billion in revenue claiming about 23% of equities under Energy industry.

Imperial Return On Equity vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Imperial Oil

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
48.3 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.

Imperial Oil

Return On Equity

 = 

Net Income

Total Equity

 = 
0.21
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.

Imperial Return On Equity Comparison

Imperial Oil is currently under evaluation in return on equity category among its peers.

Imperial Oil Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Imperial Oil, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Imperial Oil will eventually generate negative long term returns. The profitability progress is the general direction of Imperial Oil's change in net profit over the period of time. It can combine multiple indicators of Imperial Oil, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-677 M-710.9 M
Operating IncomeB8.4 B
Income Before Tax6.4 B6.7 B
Total Other Income Expense Net-1.6 B-1.5 B
Net Income4.9 B5.1 B
Income Tax Expense1.5 B740.2 M
Net Income From Continuing Ops4.9 B2.8 B
Net Income Applicable To Common Shares8.4 B8.9 B
Interest Income40.5 M25.2 M
Net Interest Income-69 M-72.5 M
Change To Netincome-216 M-205.2 M
Net Income Per Share 8.51  8.93 
Income Quality 0.76  0.73 
Net Income Per E B T 0.77  0.54 

Imperial Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Imperial Oil. 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 Imperial Oil 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 Imperial Oil's important profitability drivers and their relationship over time.

Use Imperial Oil 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 Imperial Oil 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 Imperial Oil will appreciate offsetting losses from the drop in the long position's value.

Imperial Oil Pair Trading

Imperial Oil Pair Trading Analysis

The ability to find closely correlated positions to Imperial Oil could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Imperial Oil 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 Imperial Oil - 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 Imperial Oil to buy it.
The correlation of Imperial Oil 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 Imperial Oil moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Imperial Oil 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 Imperial Oil 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Imperial Oil position

In addition to having Imperial Oil 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 Utilities - Regulated Electric Thematic Idea Now

Utilities - Regulated Electric
Utilities - Regulated Electric Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities - Regulated Electric theme has 7 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 Utilities - Regulated Electric Theme or any other thematic opportunities.
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When determining whether Imperial Oil offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Imperial Oil's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Imperial Oil Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Imperial Oil Stock:
Check out Risk vs Return Analysis.
To learn how to invest in Imperial Stock, please use our How to Invest in Imperial Oil guide.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Imperial Oil's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Imperial Oil 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 Imperial Oil's income statement, its balance sheet, and the statement of cash flows.
Potential Imperial Oil investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Imperial Oil investors may work on each financial statement separately, they are all related. The changes in Imperial Oil's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Imperial Oil's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.