KOMATSU Debt To Equity vs. Revenue
| KOMA Stock | EUR 25.20 0.20 0.80% |
For KOMATSU profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KOMATSU to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KOMATSU LTD SPONS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KOMATSU's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KOMATSU LTD SPONS over time as well as its relative position and ranking within its peers.
KOMATSU |
KOMATSU LTD SPONS Revenue vs. Debt To Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining KOMATSU's current stock value. Our valuation model uses many indicators to compare KOMATSU value to that of its competitors to determine the firm's financial worth. KOMATSU LTD SPONS is rated below average in debt to equity category among its peers. It is rated second overall in revenue category among its peers totaling about 6,930,995,609,600 of Revenue per Debt To 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 KOMATSU's earnings, one of the primary drivers of an investment's value.KOMATSU Revenue vs. Debt To Equity
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
KOMATSU |
| = | 0.48 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
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.
KOMATSU |
| = | 3.33 T |
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.
KOMATSU Revenue vs Competition
KOMATSU LTD SPONS is rated second overall in revenue category among its peers. Market size based on revenue of Farm & Heavy Construction Machinery industry is now estimated at about 7.4 Trillion. KOMATSU totals roughly 3.33 Trillion in revenue claiming about 45% of equities under Farm & Heavy Construction Machinery industry.
KOMATSU Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in KOMATSU, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KOMATSU will eventually generate negative long term returns. The profitability progress is the general direction of KOMATSU's change in net profit over the period of time. It can combine multiple indicators of KOMATSU, 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.
Komatsu Ltd. manufactures and sells construction, mining, and utility equipment and forest and industrial machinery worldwide. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan. KOMATSU operates under Farm Heavy Construction Machinery classification in Germany and is traded on Frankfurt Stock Exchange. It employs 61564 people.
KOMATSU Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on KOMATSU. 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 KOMATSU 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 KOMATSU's important profitability drivers and their relationship over time.
Use KOMATSU 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 KOMATSU 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 KOMATSU will appreciate offsetting losses from the drop in the long position's value.KOMATSU Pair Trading
KOMATSU LTD SPONS Pair Trading Analysis
The ability to find closely correlated positions to KOMATSU could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace KOMATSU 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 KOMATSU - 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 KOMATSU LTD SPONS to buy it.
The correlation of KOMATSU 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 KOMATSU moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if KOMATSU LTD SPONS 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 KOMATSU 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 KOMATSU position
In addition to having KOMATSU 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?
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Dynamically computed list of top equities currently sorted across major exchanges. The Latest Losers theme has 103 constituents at this time.
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Other Information on Investing in KOMATSU Stock
To fully project KOMATSU's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of KOMATSU LTD SPONS 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 KOMATSU's income statement, its balance sheet, and the statement of cash flows.