Lithium Australia Debt To Equity vs. Price To Sales
| LMMFF Stock | USD 0.01 0.0007 7.07% |
For Lithium Australia profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lithium Australia to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lithium Australia NL utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lithium Australia's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lithium Australia NL over time as well as its relative position and ranking within its peers.
Lithium |
Lithium Australia Price To Sales vs. Debt To Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lithium Australia's current stock value. Our valuation model uses many indicators to compare Lithium Australia value to that of its competitors to determine the firm's financial worth. Lithium Australia NL is rated below average in debt to equity category among its peers. It is rated third overall in price to sales category among its peers fabricating about 87.43 of Price To Sales 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 Lithium Australia's earnings, one of the primary drivers of an investment's value.Lithium Price To Sales 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.
Lithium Australia |
| = | 0.16 % |
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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Lithium Australia |
| = | 13.81 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Lithium Price To Sales Comparison
Lithium Australia is currently under evaluation in price to sales category among its peers.
Lithium Australia Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lithium Australia, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lithium Australia will eventually generate negative long term returns. The profitability progress is the general direction of Lithium Australia's change in net profit over the period of time. It can combine multiple indicators of Lithium Australia, 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.
Lithium Australia Limited, together with its subsidiaries, primarily engages in the mineral exploration and technology development activities. Lithium Australia Limited was incorporated in 2007 and is based in West Perth, Australia. LITHIUM AUSTRALIA operates under Other Industrial Metals Mining classification in the United States and is traded on OTC Exchange.
Lithium Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lithium Australia. 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 Lithium Australia 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 Lithium Australia's important profitability drivers and their relationship over time.
Use Lithium Australia 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 Lithium Australia 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 Lithium Australia will appreciate offsetting losses from the drop in the long position's value.Lithium Australia Pair Trading
Lithium Australia NL Pair Trading Analysis
The ability to find closely correlated positions to Lithium Australia could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lithium Australia 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 Lithium Australia - 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 Lithium Australia NL to buy it.
The correlation of Lithium Australia 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 Lithium Australia moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lithium Australia 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 Lithium Australia 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 Lithium Australia position
In addition to having Lithium Australia 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 Small Growth Funds Thematic Idea Now
Small Growth Funds
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 46 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 Small Growth Funds Theme or any other thematic opportunities.
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Other Information on Investing in Lithium Pink Sheet
To fully project Lithium Australia's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lithium Australia 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 Lithium Australia's income statement, its balance sheet, and the statement of cash flows.