LATAM Airlines Current Ratio vs. Beta

LTM Stock  USD 27.81  0.58  2.13%   
Based on LATAM Airlines' profitability indicators, LATAM Airlines Group is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess LATAM Airlines' ability to earn profits and add value for shareholders.
 
Current Ratio  
First Reported
2010-12-31
Previous Quarter
0.73897015
Current Value
0.44
Quarterly Volatility
0.12409876
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, LATAM Airlines' Sales General And Administrative To Revenue is very stable compared to the past year. As of the 4th of December 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.16, while Price To Sales Ratio is likely to drop 0.61. At this time, LATAM Airlines' Operating Income is very stable compared to the past year. As of the 4th of December 2024, Net Income From Continuing Ops is likely to grow to about 610.6 M, while Net Interest Income is likely to drop (601.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Return On Equity1.231.2921
Notably Down
Slightly volatile
For LATAM Airlines profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LATAM Airlines to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LATAM Airlines Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LATAM Airlines's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LATAM Airlines Group over time as well as its relative position and ranking within its peers.
  

LATAM Airlines' Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LATAM Airlines. If investors know LATAM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LATAM Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of LATAM Airlines Group is measured differently than its book value, which is the value of LATAM that is recorded on the company's balance sheet. Investors also form their own opinion of LATAM Airlines' value that differs from its market value or its book value, called intrinsic value, which is LATAM Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LATAM Airlines' market value can be influenced by many factors that don't directly affect LATAM Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LATAM Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if LATAM Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LATAM Airlines' 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.

LATAM Airlines Group Beta vs. Current Ratio Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining LATAM Airlines's current stock value. Our valuation model uses many indicators to compare LATAM Airlines value to that of its competitors to determine the firm's financial worth.
LATAM Airlines Group is currently regarded as number one stock in current ratio category among its peers. It also is currently regarded as number one stock in beta category among its peers totaling about  3.40  of Beta per Current Ratio. At this time, LATAM Airlines' Current Ratio is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value LATAM Airlines by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

LATAM Beta vs. Current Ratio

Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

LATAM Airlines

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
0.58 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

LATAM Airlines

Beta

 = 

Covariance

Variance

 = 
1.97
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

LATAM Beta Comparison

LATAM Airlines is currently under evaluation in beta category among its peers.

Beta Analysis

As the market goes up, the company is expected to outperform it. However, if the market returns are negative, LATAM Airlines will likely underperform.

LATAM Airlines Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in LATAM Airlines, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LATAM Airlines will eventually generate negative long term returns. The profitability progress is the general direction of LATAM Airlines' change in net profit over the period of time. It can combine multiple indicators of LATAM Airlines, 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-5 B-5.3 B
Net Interest Income-572.9 M-601.5 M
Operating Income1.1 B1.1 B
Net Income From Continuing Ops581.5 M610.6 M
Income Before Tax596.5 M626.3 M
Total Other Income Expense Net-481.7 M-505.8 M
Net Income581.8 M610.9 M
Income Tax Expense14.9 M11.7 M
Net Income Per Share 1.93  1.83 
Income Quality 3.04  5.07 
Net Income Per E B T 0.98  0.67 

LATAM Profitability Driver Comparison

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

Use LATAM Airlines 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 LATAM Airlines 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 LATAM Airlines will appreciate offsetting losses from the drop in the long position's value.

LATAM Airlines Pair Trading

LATAM Airlines Group Pair Trading Analysis

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

In addition to having LATAM Airlines 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.

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Hotels
Hotels Theme
Hotels, inns, motels, and other companies providing lodging and hospitality services. The Hotels theme has 45 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 Hotels Theme or any other thematic opportunities.
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When determining whether LATAM Airlines Group is a strong investment it is important to analyze LATAM Airlines' 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 LATAM Airlines' future performance. For an informed investment choice regarding LATAM Stock, refer to the following important reports:
Check out Correlation Analysis.
You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project LATAM Airlines' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LATAM Airlines Group 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 LATAM Airlines' income statement, its balance sheet, and the statement of cash flows.
Potential LATAM Airlines investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although LATAM Airlines investors may work on each financial statement separately, they are all related. The changes in LATAM Airlines's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on LATAM Airlines'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.