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 Cash and its Retained Earnings 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.
Cash vs Retained Earnings
Cash vs Retained Earnings Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Rio Tinto PLC Cash account and Retained Earnings. At this time, the significance of the direction appears to have fragmental relationship.
The correlation between Rio Tinto's Cash and Retained Earnings is 0.41. Overlapping area represents the amount of variation of Cash that can explain the historical movement of Retained Earnings 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 Cash and Retained Earnings is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Cash of Rio Tinto PLC are associated (or correlated) with its Retained Earnings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Retained Earnings has no effect on the direction of Cash i.e., Rio Tinto's Cash and Retained Earnings go up and down completely randomly.
Cash refers to the most liquid asset of Rio Tinto PLC, which is listed under current asset account on Rio Tinto PLC balance sheet and usually includes currency, coins, checking accounts, and not deposited checks received from Rio Tinto customers. The amounts must be unrestricted with restricted cash listed in a different Rio Tinto account. The total amount of money in the form of currency that a company has in its possession. This includes all bills, coins, and funds in bank accounts.
Retained Earnings
The cumulative amount of net income that a company retains for reinvestment in its operations, rather than distributing it to shareholders as dividends.
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.