| LT Stock | | | 3,758 49.05 1.29% |
Larsen Toubro financial indicator trend analysis is infinitely more than just investigating Larsen Toubro Limited recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Larsen Toubro Limited is a good investment. Please check the relationship between Larsen Toubro Total Current Liabilities and its Accounts Payable accounts. Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Larsen Toubro Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in board of governors.
Total Current Liabilities vs Accounts Payable
Total Current Liabilities vs Accounts Payable Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of
Larsen Toubro Limited Total Current Liabilities account and
Accounts Payable. At this time, the significance of the direction appears to have almost identical trend.
The correlation between Larsen Toubro's Total Current Liabilities and Accounts Payable is 0.92. Overlapping area represents the amount of variation of Total Current Liabilities that can explain the historical movement of Accounts Payable in the same time period over historical financial statements of Larsen Toubro Limited, assuming nothing else is changed. The correlation between historical values of Larsen Toubro's Total Current Liabilities and Accounts Payable is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Total Current Liabilities of Larsen Toubro Limited are associated (or correlated) with its Accounts Payable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Accounts Payable has no effect on the direction of Total Current Liabilities i.e., Larsen Toubro's Total Current Liabilities and Accounts Payable go up and down completely randomly.
Correlation Coefficient | 0.92 |
| Relationship Direction | Positive |
| Relationship Strength | Very Strong |
Total Current Liabilities
Total Current Liabilities is an item on Larsen Toubro balance sheet that include short term debt, accounts payable, accrued salaries payable, payroll taxes payable, accrued liabilities and other debts. Total Current Liabilities of Larsen Toubro Limited are important to investors because some useful performance ratios such as Current Ratio and Quick Ratio require Total Current Liabilities to be accurate. The total amount of liabilities that a company is expected to pay within one year, including debts, accounts payable, and other short-term financial obligations.
Accounts Payable
An accounting item on the balance sheet that represents Larsen Toubro obligation to pay off a short-term debt to its creditors. The accounts payable entry is usually reported under current liabilities. If accounts payable of Larsen Toubro Limited are not paid within the agreed terms, the payables are considered to be in default, which may trigger a penalty or interest payment, or the revocation of additional credit from the supplier. Accounts payable may also be considered a source of cash, since they represent funds being borrowed from suppliers. Given these cash flow considerations, suppliers have a natural inclination to push for shorter payment terms, while creditors want to lengthen the payment terms. The amount a company owes to suppliers or vendors for products or services received but not yet paid for. It represents the company's short-term liabilities.
Most indicators from Larsen Toubro's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Larsen Toubro Limited current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Larsen Toubro Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in board of governors.
The current year's
Selling General Administrative is expected to grow to about 588.6
B. The current year's
Tax Provision is expected to grow to about 51.9
BLarsen Toubro fundamental ratios Correlations
Click cells to compare fundamentals
Larsen Toubro Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Larsen Toubro fundamental ratios Accounts
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Other Information on Investing in Larsen Stock
Balance Sheet is a snapshot of the
financial position of Larsen Toubro Limited at a specified time, usually calculated after every quarter, six months, or one year. Larsen Toubro Balance Sheet has two main parts: assets and liabilities. Liabilities are the debts or obligations of Larsen Toubro and are divided into current liabilities and long term liabilities. An asset, on the other hand, is anything of value that can be converted into cash and which Larsen currently owns. An asset can also be divided into two categories, current and non-current.