Petrleo Brasileiro Cash And Equivalents vs. Return On Asset

PBR-A Stock  USD 12.06  0.11  0.92%   
Considering Petrleo Brasileiro's profitability and operating efficiency indicators, Petrleo Brasileiro SA may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in January. Profitability indicators assess Petrleo Brasileiro's ability to earn profits and add value for shareholders. At present, Petrleo Brasileiro's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 41.82, whereas EV To Sales is forecasted to decline to 1.13. At present, Petrleo Brasileiro's Accumulated Other Comprehensive Income is projected to decrease significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 37.2 B, whereas Operating Income is forecasted to decline to about 21.5 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.450.527
Fairly Down
Slightly volatile
Operating Profit Margin0.20.3835
Way Down
Slightly volatile
For Petrleo Brasileiro profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Petrleo Brasileiro to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Petrleo Brasileiro SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Petrleo Brasileiro's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Petrleo Brasileiro SA over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Petrleo Brasileiro's value and its price as these two are different measures arrived at by different means. Investors typically determine if Petrleo Brasileiro is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Petrleo Brasileiro'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.

Petrleo Brasileiro Return On Asset vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Petrleo Brasileiro's current stock value. Our valuation model uses many indicators to compare Petrleo Brasileiro value to that of its competitors to determine the firm's financial worth.
Petrleo Brasileiro SA is rated below average in cash and equivalents category among its peers. It is regarded fourth in return on asset category among its peers . The ratio of Cash And Equivalents to Return On Asset for Petrleo Brasileiro SA is about  146,978,021,978 . As of December 24, 2024, Return On Assets is expected to decline to 0.08. 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 Petrleo Brasileiro's earnings, one of the primary drivers of an investment's value.

Petrleo Return On Asset vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Petrleo Brasileiro

Cash

 = 

Bank Deposits

+

Liquidities

 = 
16.05 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
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.

Petrleo Brasileiro

Return On Asset

 = 

Net Income

Total Assets

 = 
0.11
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.

Petrleo Return On Asset Comparison

Petrleo Brasileiro is currently under evaluation in return on asset category among its peers.

Petrleo Brasileiro Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Petrleo Brasileiro, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Petrleo Brasileiro will eventually generate negative long term returns. The profitability progress is the general direction of Petrleo Brasileiro's change in net profit over the period of time. It can combine multiple indicators of Petrleo Brasileiro, 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 Income3.3 B3.4 B
Operating Income39.3 B21.5 B
Income Before Tax35.4 B37.2 B
Total Other Income Expense Net-3.9 B-4.1 B
Net Income25.7 B27 B
Income Tax Expense10.4 B10.9 B
Net Income From Continuing Ops27 B28.3 B
Net Income Applicable To Common Shares216.6 B227.4 B
Net Interest Income-3.4 B-3.5 B
Interest Income519 M481.4 M
Change To Netincome116.8 B122.6 B
Net Income Per Share 1.91  2.01 
Income Quality 1.68  1.60 
Net Income Per E B T 0.70  0.54 

Petrleo Profitability Driver Comparison

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

Use Petrleo Brasileiro 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 Petrleo Brasileiro 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 Petrleo Brasileiro will appreciate offsetting losses from the drop in the long position's value.

Petrleo Brasileiro Pair Trading

Petrleo Brasileiro SA Pair Trading Analysis

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

Use Investing Themes to Complement your Petrleo Brasileiro position

In addition to having Petrleo Brasileiro 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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Agriculture
Agriculture Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Agriculture theme has 30 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 Agriculture Theme or any other thematic opportunities.
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Other Information on Investing in Petrleo Stock

To fully project Petrleo Brasileiro's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Petrleo Brasileiro 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 Petrleo Brasileiro's income statement, its balance sheet, and the statement of cash flows.
Potential Petrleo Brasileiro investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Petrleo Brasileiro investors may work on each financial statement separately, they are all related. The changes in Petrleo Brasileiro's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Petrleo Brasileiro'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.