Indo Acidatama Return On Equity vs. Price To Sales

SRSN Stock  IDR 50.00  1.00  1.96%   
Based on the key profitability measurements obtained from Indo Acidatama's financial statements, Indo Acidatama Tbk may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Indo Acidatama's ability to earn profits and add value for shareholders.
For Indo Acidatama profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Indo Acidatama to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Indo Acidatama Tbk utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Indo Acidatama's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Indo Acidatama Tbk 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 Indo Acidatama's value and its price as these two are different measures arrived at by different means. Investors typically determine if Indo Acidatama is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Indo Acidatama'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.

Indo Acidatama Tbk Price To Sales vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Indo Acidatama's current stock value. Our valuation model uses many indicators to compare Indo Acidatama value to that of its competitors to determine the firm's financial worth.
Indo Acidatama Tbk is rated third in return on equity category among its peers. It is rated fifth in price to sales category among its peers fabricating about  13.13  of Price To Sales 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 Indo Acidatama's earnings, one of the primary drivers of an investment's value.

Indo Price To Sales 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.

Indo Acidatama

Return On Equity

 = 

Net Income

Total Equity

 = 
0.026
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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Indo Acidatama

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.34 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Indo Price To Sales Comparison

Indo Acidatama is currently under evaluation in price to sales category among its peers.

Indo Acidatama Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Indo Acidatama, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Indo Acidatama will eventually generate negative long term returns. The profitability progress is the general direction of Indo Acidatama's change in net profit over the period of time. It can combine multiple indicators of Indo Acidatama, 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 Indo Acidatama Tbk produces and sells basic and agro chemicals primarily in Indonesia. PT Indo Acidatama Tbk was founded in 1982 and is based in West Jakarta, Indonesia. Indo Acidatama operates under Chemicals classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 380 people.

Indo Profitability Driver Comparison

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

Use Indo Acidatama 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 Indo Acidatama 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 Indo Acidatama will appreciate offsetting losses from the drop in the long position's value.

Indo Acidatama Pair Trading

Indo Acidatama Tbk Pair Trading Analysis

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

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Other Information on Investing in Indo Stock

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