Newcrest Mining Net Income vs. Return On Equity
Considering the key profitability indicators obtained from Newcrest Mining's historical financial statements, Newcrest Mining may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Newcrest Mining's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
Please note, there is a significant difference between Newcrest Mining's value and its price as these two are different measures arrived at by different means. Investors typically determine if Newcrest Mining is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Newcrest Mining'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.
For Newcrest Mining profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Newcrest Mining to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Newcrest Mining utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Newcrest Mining's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Newcrest Mining over time as well as its relative position and ranking within its peers.
Newcrest |
Newcrest Mining Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Newcrest Mining's current stock value. Our valuation model uses many indicators to compare Newcrest Mining value to that of its competitors to determine the firm's financial worth. Newcrest Mining is considered to be number one stock in net income category among its peers. It also is considered to be number one stock in return on equity category among its peers . The ratio of Net Income to Return On Equity for Newcrest Mining is about 10,900,000,000 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Newcrest Mining by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Newcrest Mining's Pink Sheet. 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.Newcrest Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Newcrest Mining |
| = | 872 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Newcrest Mining |
| = | 0.08 |
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.
Newcrest Return On Equity Comparison
Newcrest Mining is currently under evaluation in return on equity category among its peers.
Newcrest Mining Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Newcrest Mining, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Newcrest Mining will eventually generate negative long term returns. The profitability progress is the general direction of Newcrest Mining's change in net profit over the period of time. It can combine multiple indicators of Newcrest Mining, 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.
Newcrest Mining Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and goldcopper concentrates. Newcrest Mining Limited was founded in 1966 and is headquartered in Melbourne, Australia. Newcrest Mining operates under Gold classification in the United States and is traded on OTC Exchange.
Newcrest Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Newcrest Mining. 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 Newcrest Mining 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 Newcrest Mining's important profitability drivers and their relationship over time.
Use Newcrest Mining 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 Newcrest Mining 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 Newcrest Mining will appreciate offsetting losses from the drop in the long position's value.Newcrest Mining Pair Trading
Newcrest Mining Pair Trading Analysis
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft 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 Microsoft - 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 Microsoft to buy it.
The correlation of Microsoft 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 Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft 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 Microsoft 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 Newcrest Mining position
In addition to having Newcrest Mining 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 Electronics Thematic Idea Now
Electronics
Companies manufacturing electronic appliances and goods. The Electronics theme has 47 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 Electronics Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Consideration for investing in Newcrest Pink Sheet
If you are still planning to invest in Newcrest Mining check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Newcrest Mining's history and understand the potential risks before investing.
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