Oil India Profitability Analysis
| OIL Stock | 457.70 23.40 4.86% |
For Oil India profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Oil India to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Oil India Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Oil India's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Oil India Limited over time as well as its relative position and ranking within its peers.
Oil |
Oil India Limited Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Oil India's current stock value. Our valuation model uses many indicators to compare Oil India value to that of its competitors to determine the firm's financial worth. Oil India Limited is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in return on asset category among its peers reporting about 0.39 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Oil India Limited is roughly 2.54 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Oil India's earnings, one of the primary drivers of an investment's value.Oil Return On Asset vs. Return On Equity
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.
Oil India |
| = | 0.18 |
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.
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.
Oil India |
| = | 0.0704 |
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.
Oil Return On Asset Comparison
Oil India is currently under evaluation in return on asset category among its peers.
Oil Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Oil India. 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 Oil India 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 Oil India's important profitability drivers and their relationship over time.
Use Oil India 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 Oil India 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 Oil India will appreciate offsetting losses from the drop in the long position's value.Oil India Pair Trading
Oil India Limited Pair Trading Analysis
The ability to find closely correlated positions to Oil India could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Oil India 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 Oil India - 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 Oil India Limited to buy it.
The correlation of Oil India 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 Oil India moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Oil India Limited 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 Oil India 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 Oil India position
In addition to having Oil India 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 IT Thematic Idea Now
IT
Information Technology (IT) companies and IT service providers across different domains. The IT theme has 43 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 IT Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in Oil Stock
To fully project Oil India's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Oil India Limited 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 Oil India's income statement, its balance sheet, and the statement of cash flows.