Renault SA EBITDA vs. Return On Equity
| RNSDF Stock | USD 48.60 0.00 0.00% |
For Renault SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Renault SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Renault SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Renault SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Renault SA over time as well as its relative position and ranking within its peers.
Renault |
Renault SA Return On Equity vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Renault SA's current stock value. Our valuation model uses many indicators to compare Renault SA value to that of its competitors to determine the firm's financial worth. Renault SA is currently regarded as top stock in ebitda category among its peers. It also is currently regarded as top stock in return on equity category among its peers . The ratio of EBITDA to Return On Equity for Renault SA is about 114,684,512,428 . 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 Renault SA's earnings, one of the primary drivers of an investment's value.Renault Return On Equity 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.
Renault SA |
| = | 6 B |
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 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.
Renault SA |
| = | 0.0523 |
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.
Renault Return On Equity Comparison
Renault SA is currently under evaluation in return on equity category among its peers.
Renault SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Renault SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Renault SA will eventually generate negative long term returns. The profitability progress is the general direction of Renault SA's change in net profit over the period of time. It can combine multiple indicators of Renault SA, 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.
Renault SA designs, manufactures, sells, and distributes vehicles in France and internationally. Renault SA was founded in 1898 and is based in Boulogne-Billancourt, France. RENAULT SA operates under Auto Manufacturers classification in the United States and is traded on OTC Exchange. It employs 160000 people.
Renault Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Renault SA. 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 Renault SA 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 Renault SA's important profitability drivers and their relationship over time.
Use Renault SA 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 Renault SA 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 Renault SA will appreciate offsetting losses from the drop in the long position's value.Renault SA Pair Trading
Renault SA Pair Trading Analysis
The ability to find closely correlated positions to Renault SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Renault SA 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 Renault SA - 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 Renault SA to buy it.
The correlation of Renault SA 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 Renault SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Renault SA 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 Renault SA 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 Renault SA position
In addition to having Renault SA 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 Renault Pink Sheet
To fully project Renault SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Renault SA 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 Renault SA's income statement, its balance sheet, and the statement of cash flows.