Oaktree Specialty EBITDA vs. Return On Asset

OCSL Stock  USD 16.21  0.12  0.73%   
Based on the key profitability measurements obtained from Oaktree Specialty's financial statements, Oaktree Specialty's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Oaktree Specialty's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
207.9 M
Current Value
218.3 M
Quarterly Volatility
99 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
Operating Cash Flow Sales Ratio is expected to rise to 0.06 this year, although the value of Price To Sales Ratio will most likely fall to 3.60. At this time, Oaktree Specialty's Interest Income is quite stable compared to the past year. Change To Netincome is expected to rise to about 56.9 M this year, although the value of Income Tax Expense will most likely fall to (113.4 K).
For Oaktree Specialty profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Oaktree Specialty to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Oaktree Specialty Lending utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Oaktree Specialty's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Oaktree Specialty Lending over time as well as its relative position and ranking within its peers.
  
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Is Asset Management & Custody Banks 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 Oaktree Specialty. If investors know Oaktree 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 Oaktree Specialty listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.97)
Earnings Share
0.72
Revenue Per Share
4.913
Quarterly Revenue Growth
(0.07)
Return On Assets
0.0575
The market value of Oaktree Specialty Lending is measured differently than its book value, which is the value of Oaktree that is recorded on the company's balance sheet. Investors also form their own opinion of Oaktree Specialty's value that differs from its market value or its book value, called intrinsic value, which is Oaktree Specialty's 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 Oaktree Specialty's market value can be influenced by many factors that don't directly affect Oaktree Specialty's 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 Oaktree Specialty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Oaktree Specialty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Oaktree Specialty'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.

Oaktree Specialty Lending Return On Asset vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Oaktree Specialty's current stock value. Our valuation model uses many indicators to compare Oaktree Specialty value to that of its competitors to determine the firm's financial worth.
Oaktree Specialty Lending is rated below average in ebitda category among its peers. It is regarded fourth in return on asset category among its peers . The ratio of EBITDA to Return On Asset for Oaktree Specialty Lending is about  3,143,913,043 . At this time, Oaktree Specialty's EBITDA is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Oaktree Specialty 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.

Oaktree Return On Asset 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.

Oaktree Specialty

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
180.78 M
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Oaktree Specialty

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0575
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Oaktree Return On Asset Comparison

Oaktree Specialty is currently under evaluation in return on asset category among its peers.

Oaktree Specialty Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Oaktree Specialty, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Oaktree Specialty will eventually generate negative long term returns. The profitability progress is the general direction of Oaktree Specialty's change in net profit over the period of time. It can combine multiple indicators of Oaktree Specialty, 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 Income1.7 B1.8 B
Operating Income338.9 M355.9 M
Income Before Tax57.8 M49.8 M
Net Income Applicable To Common Shares33.6 M43 M
Net Income136.4 M143.2 M
Income Tax Expense-108 K-113.4 K
Total Other Income Expense Net-281.1 M-267.1 M
Net Income From Continuing Ops134.9 M141.7 M
Interest Income423.8 M445 M
Net Interest Income295.4 M163.9 M
Change To Netincome54.1 M56.9 M
Net Income Per Share 2.18  2.29 
Income Quality 0.14  0.15 
Net Income Per E B T 3.03  3.18 

Oaktree Profitability Driver Comparison

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

Use Oaktree Specialty 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 Oaktree Specialty 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 Oaktree Specialty will appreciate offsetting losses from the drop in the long position's value.

Oaktree Specialty Pair Trading

Oaktree Specialty Lending Pair Trading Analysis

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

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When determining whether Oaktree Specialty Lending is a strong investment it is important to analyze Oaktree Specialty's 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 Oaktree Specialty's future performance. For an informed investment choice regarding Oaktree Stock, refer to the following important reports:
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You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
To fully project Oaktree Specialty's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Oaktree Specialty Lending 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 Oaktree Specialty's income statement, its balance sheet, and the statement of cash flows.
Potential Oaktree Specialty investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Oaktree Specialty investors may work on each financial statement separately, they are all related. The changes in Oaktree Specialty's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Oaktree Specialty'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.