Rio Tinto financial indicator trend analysis is much more than just breaking down Rio Tinto PLC prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Rio Tinto PLC is a good investment. Please check the relationship between Rio Tinto Capital Expenditures and its Change In Working Capital accounts. Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rio Tinto PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
Capital Expenditures vs Change In Working Capital
Capital Expenditures vs Change In Working Capital Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Rio Tinto PLC Capital Expenditures account and Change In Working Capital. At this time, the significance of the direction appears to have very week relationship.
The correlation between Rio Tinto's Capital Expenditures and Change In Working Capital is 0.24. Overlapping area represents the amount of variation of Capital Expenditures that can explain the historical movement of Change In Working Capital in the same time period over historical financial statements of Rio Tinto PLC, assuming nothing else is changed. The correlation between historical values of Rio Tinto's Capital Expenditures and Change In Working Capital is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Capital Expenditures of Rio Tinto PLC are associated (or correlated) with its Change In Working Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Change In Working Capital has no effect on the direction of Capital Expenditures i.e., Rio Tinto's Capital Expenditures and Change In Working Capital go up and down completely randomly.
Capital Expenditures are funds used by Rio Tinto PLC to acquire physical assets such as property, industrial buildings or equipment. This type of outlay is used by management to increase the scope of Rio Tinto operations. These expenditures can include everything from repairing an office equipment, building a brand new facility, or writing new software.
Change In Working Capital
The difference in the amount of working capital from one period to the next, indicating the change in a company's short-term assets and liabilities.
Most indicators from Rio Tinto's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Rio Tinto PLC 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 Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rio Tinto PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
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.
Balance Sheet is a snapshot of the financial position of Rio Tinto PLC at a specified time, usually calculated after every quarter, six months, or one year. Rio Tinto Balance Sheet has two main parts: assets and liabilities. Liabilities are the debts or obligations of Rio Tinto 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 Rio currently owns. An asset can also be divided into two categories, current and non-current.