Lowes Companies EBITDA vs. Cash And Equivalents
| LOWC34 Stock | BRL 76.75 0.35 0.45% |
For Lowes Companies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lowes Companies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lowes Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lowes Companies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lowes Companies over time as well as its relative position and ranking within its peers.
Lowes |
Lowes Companies Cash And Equivalents vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lowes Companies's current stock value. Our valuation model uses many indicators to compare Lowes Companies value to that of its competitors to determine the firm's financial worth. Lowes Companies is rated below average in ebitda category among its peers. It is rated below average in cash and equivalents category among its peers creating about 0.45 of Cash And Equivalents per EBITDA. The ratio of EBITDA to Cash And Equivalents for Lowes Companies is roughly 2.23 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lowes Companies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lowes Companies' 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.Lowes Cash And Equivalents 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.
Lowes Companies |
| = | 13.97 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.
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.
Lowes Companies |
| = | 6.26 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).
Lowes Cash And Equivalents Comparison
Lowes Companies is rated below average in cash and equivalents category among its peers.
Lowes Companies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lowes Companies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lowes Companies will eventually generate negative long term returns. The profitability progress is the general direction of Lowes Companies' change in net profit over the period of time. It can combine multiple indicators of Lowes Companies, 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.
Lowes Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. Lowes Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina. LOWES COMPA operates under Home Improvement Retail classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 300000 people.
Lowes Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lowes Companies. 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 Lowes Companies 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 Lowes Companies' important profitability drivers and their relationship over time.
Use Lowes Companies 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 Lowes Companies 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 Lowes Companies will appreciate offsetting losses from the drop in the long position's value.Lowes Companies Pair Trading
Lowes Companies Pair Trading Analysis
The ability to find closely correlated positions to Lowes Companies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lowes Companies 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 Lowes Companies - 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 Lowes Companies to buy it.
The correlation of Lowes Companies 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 Lowes Companies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lowes Companies 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 Lowes Companies 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 Lowes Companies position
In addition to having Lowes Companies 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 Business Services Thematic Idea Now
Business Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 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 Business Services Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Lowes Stock
When determining whether Lowes Companies is a strong investment it is important to analyze Lowes Companies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lowes Companies' future performance. For an informed investment choice regarding Lowes Stock, refer to the following important reports:Check out Correlation Analysis. For information on how to trade Lowes Stock refer to our How to Trade Lowes Stock guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Lowes Companies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lowes Companies 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 Lowes Companies' income statement, its balance sheet, and the statement of cash flows.