Laurentian Bank Cash And Equivalents vs. Return On Equity
| LB Stock | CAD 28.83 0.18 0.63% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.25 | 0.26 |
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For Laurentian Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Laurentian Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Laurentian Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Laurentian Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Laurentian Bank over time as well as its relative position and ranking within its peers.
Laurentian |
Laurentian Bank Return On Equity vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Laurentian Bank's current stock value. Our valuation model uses many indicators to compare Laurentian Bank value to that of its competitors to determine the firm's financial worth. Laurentian Bank is rated fourth overall in cash and equivalents category among its peers. It is rated below average in return on equity category among its peers . At this time, Laurentian Bank's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Laurentian Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Laurentian Bank'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.Laurentian 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.
Laurentian Bank |
| = | 7.05 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.
Laurentian Bank |
| = | -0.0055 |
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.
Laurentian Return On Equity Comparison
Laurentian Bank is currently under evaluation in return on equity category among its peers.
Laurentian Bank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Laurentian Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Laurentian Bank will eventually generate negative long term returns. The profitability progress is the general direction of Laurentian Bank's change in net profit over the period of time. It can combine multiple indicators of Laurentian Bank, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 175.3 M | 184 M | |
| Operating Income | 211.1 M | 200.5 M | |
| Income Before Tax | 242 M | 158.7 M | |
| Total Other Income Expense Net | -27.7 M | -29.1 M | |
| Net Income | 208.3 M | 123.1 M | |
| Income Tax Expense | 33.7 M | 37 M | |
| Net Income From Continuing Ops | 208.3 M | 173.5 M | |
| Net Income Applicable To Common Shares | 247 M | 156.7 M | |
| Net Interest Income | 858.3 M | 739.4 M | |
| Interest Income | 2.6 B | 1.6 B | |
| Change To Netincome | -40.4 M | -38.4 M | |
| Net Loss | (0.13) | (0.12) | |
| Income Quality | (36.15) | (34.34) | |
| Net Income Per E B T | 0.25 | 0.24 |
Laurentian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Laurentian Bank. 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 Laurentian Bank 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 Laurentian Bank's important profitability drivers and their relationship over time.
Use Laurentian Bank 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 Laurentian Bank 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 Laurentian Bank will appreciate offsetting losses from the drop in the long position's value.Laurentian Bank Pair Trading
Laurentian Bank Pair Trading Analysis
The ability to find closely correlated positions to Laurentian Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Laurentian Bank 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 Laurentian Bank - 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 Laurentian Bank to buy it.
The correlation of Laurentian Bank 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 Laurentian Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Laurentian Bank 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 Laurentian Bank 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 Laurentian Bank position
In addition to having Laurentian Bank 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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Large corporations operating in retail, broadcasting, energy, airlines and telecom sectors. The Impulse theme has 49 constituents at this time.
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Other Information on Investing in Laurentian Stock
To fully project Laurentian Bank's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Laurentian Bank 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 Laurentian Bank's income statement, its balance sheet, and the statement of cash flows.