Orea Mining Current Ratio vs. Return On Equity
Considering the key profitability indicators obtained from Orea Mining's historical financial statements, Orea Mining Corp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Orea Mining's ability to earn profits and add value for shareholders.
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For Orea Mining profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Orea Mining to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Orea Mining Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Orea Mining's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Orea Mining Corp over time as well as its relative position and ranking within its peers.
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Orea Mining Corp Return On Equity vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Orea Mining's current stock value. Our valuation model uses many indicators to compare Orea Mining value to that of its competitors to determine the firm's financial worth. Orea Mining Corp is considered to be number one stock in current ratio category among its peers. It also is considered to be number one stock in return on equity category among its peers . 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 Orea Mining's earnings, one of the primary drivers of an investment's value.Orea Return On Equity 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.
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| = | 0.95 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).
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.
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| = | -1.98 |
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.
Orea Return On Equity Comparison
Orea Mining is currently under evaluation in return on equity category among its peers.
Orea Mining Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Orea Mining, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Orea Mining will eventually generate negative long term returns. The profitability progress is the general direction of Orea Mining's change in net profit over the period of time. It can combine multiple indicators of Orea 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.
Orea Mining Corp. engages in the acquisition, exploration, and development of mineral properties in France and South America. Orea Mining Corp. was incorporated in 2003 and is headquartered in Vancouver, Canada. OREA MINING operates under Gold classification in the United States and is traded on OTC Exchange.
Orea Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Orea 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 Orea 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 Orea Mining's important profitability drivers and their relationship over time.
Use Orea 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 Orea 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 Orea Mining will appreciate offsetting losses from the drop in the long position's value.Orea Mining Pair Trading
Orea Mining Corp Pair Trading Analysis
The ability to find closely correlated positions to Orea Mining could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Orea Mining 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 Orea Mining - 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 Orea Mining Corp to buy it.
The correlation of Orea Mining 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 Orea Mining moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Orea Mining Corp 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 Orea Mining 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 Orea Mining position
In addition to having Orea 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?
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Other Information on Investing in Orea Pink Sheet
To fully project Orea Mining's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Orea Mining Corp 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 Orea Mining's income statement, its balance sheet, and the statement of cash flows.