Phapros Tbk Return On Equity vs. Return On Asset

PEHA Stock  IDR 318.00  10.00  3.05%   
Taking into consideration Phapros Tbk's profitability measurements, Phapros Tbk PT may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in February. Profitability indicators assess Phapros Tbk's ability to earn profits and add value for shareholders.
For Phapros Tbk profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Phapros Tbk to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Phapros Tbk PT utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Phapros Tbk's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Phapros Tbk PT 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 Phapros Tbk's value and its price as these two are different measures arrived at by different means. Investors typically determine if Phapros Tbk is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Phapros Tbk'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.

Phapros Tbk PT Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Phapros Tbk's current stock value. Our valuation model uses many indicators to compare Phapros Tbk value to that of its competitors to determine the firm's financial worth.
Phapros Tbk PT 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  1.57  of Return On Asset per Return On Equity. 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 Phapros Tbk's earnings, one of the primary drivers of an investment's value.

Phapros 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.

Phapros Tbk

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0224
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.

Phapros Tbk

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0352
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.

Phapros Return On Asset Comparison

Phapros Tbk is currently under evaluation in return on asset category among its peers.

Phapros Tbk Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Phapros Tbk, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Phapros Tbk will eventually generate negative long term returns. The profitability progress is the general direction of Phapros Tbk's change in net profit over the period of time. It can combine multiple indicators of Phapros Tbk, 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.
PT Phapros, Tbk operates in the pharmaceutical and health care industry in Indonesia. PT Phapros, Tbk operates as a subsidiary of PT Kimia Farma Tbk. Phapros Tbk operates under Drug ManufacturersSpecialty Generic classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 1568 people.

Phapros Profitability Driver Comparison

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

Use Phapros Tbk 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 Phapros Tbk 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 Phapros Tbk will appreciate offsetting losses from the drop in the long position's value.

Phapros Tbk Pair Trading

Phapros Tbk PT Pair Trading Analysis

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

In addition to having Phapros Tbk 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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Other Information on Investing in Phapros Stock

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