Considering Royal Canadian's profitability and operating efficiency indicators, Royal Canadian Mint is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Royal Canadian's ability to earn profits and add value for shareholders.
For Royal Canadian profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Royal Canadian to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Royal Canadian Mint utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Royal Canadian's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Royal Canadian Mint over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Royal Canadian's value and its price as these two are different measures arrived at by different means. Investors typically determine if Royal Canadian is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Royal Canadian's 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.
Royal Canadian Mint Return On Equity vs. Total Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Royal Canadian's current stock value. Our valuation model uses many indicators to compare Royal Canadian value to that of its competitors to determine the firm's financial worth.
Royal Canadian Mint is considered to be number one stock in total asset category among its peers. It also is considered to be number one stock in return on equity category among its peers . The ratio of Total Asset to Return On Equity for Royal Canadian Mint is about 20,175,743 . At this time, Royal Canadian's Total Assets are very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Royal Canadian by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Royal Canadian'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.
Royal Return On Equity vs. Total Asset
Total Asset is everything that a business owns. It is the sum of current and long-term assets owned by a firm at a given time. These assets are listed on a balance sheet and typically valued based on their purchasing prices, not the current market value.
Royal Canadian
Total Asset
=
Tangible Assets
+
Intangible Assets
=
405.48 M
Total Asset is typically divided on the balance sheet on current asset and long-term asset. Long-term is the value of company property and other capital assets that are expected to be useable for more than one year. Long term assets are reported net of depreciation. On the other hand current assets are assets that are expected to be sold or converted to cash as part of normal business operation.
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.
Royal Canadian
Return On Equity
=
Net Income
Total Equity
=
20.1
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.
Royal Canadian Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Royal Canadian, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Royal Canadian will eventually generate negative long term returns. The profitability progress is the general direction of Royal Canadian's change in net profit over the period of time. It can combine multiple indicators of Royal Canadian, 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.
Profitability drivers are factors that can directly affect your investment outlook on Royal Canadian. 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 Royal Canadian 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 Royal Canadian's important profitability drivers and their relationship over time.
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 Royal Canadian 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 Royal Canadian will appreciate offsetting losses from the drop in the long position's value.
Royal Canadian Pair Trading
Royal Canadian Mint Pair Trading Analysis
The ability to find closely correlated positions to Royal Canadian could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Royal Canadian 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 Royal Canadian - 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 Royal Canadian Mint to buy it.
The correlation of Royal Canadian 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 Royal Canadian moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Royal Canadian Mint 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 Royal Canadian 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 Royal Canadian position
In addition to having Royal Canadian 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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Iron
Companies involved in production of steel and iron. The Iron theme has 38 constituents at this time.
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To fully project Royal Canadian's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Royal Canadian Mint 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 Royal Canadian's income statement, its balance sheet, and the statement of cash flows.
Potential Royal Canadian investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Royal Canadian investors may work on each financial statement separately, they are all related. The changes in Royal Canadian's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Royal Canadian'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.
