Restaurant Brands Cash And Equivalents vs. Profit Margin
| 0R6 Stock | EUR 62.82 0.04 0.06% |
For Restaurant Brands profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Restaurant Brands to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Restaurant Brands International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Restaurant Brands's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Restaurant Brands International over time as well as its relative position and ranking within its peers.
Restaurant |
Restaurant Brands Profit Margin vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Restaurant Brands's current stock value. Our valuation model uses many indicators to compare Restaurant Brands value to that of its competitors to determine the firm's financial worth. Restaurant Brands International is rated below average in cash and equivalents category among its peers. It is rated fourth in profit margin category among its peers . The ratio of Cash And Equivalents to Profit Margin for Restaurant Brands International is about 5,819,354,839 . 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 Restaurant Brands' earnings, one of the primary drivers of an investment's value.Restaurant Profit Margin vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Restaurant Brands |
| = | 902 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Restaurant Brands |
| = | 0.15 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Restaurant Profit Margin Comparison
Restaurant Brands is rated third in profit margin category among its peers.
Restaurant Brands Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Restaurant Brands, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Restaurant Brands will eventually generate negative long term returns. The profitability progress is the general direction of Restaurant Brands' change in net profit over the period of time. It can combine multiple indicators of Restaurant Brands, 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.
Restaurant Brands International Inc. owns, operates, and franchises quick service restaurants under the Tim Hortons , Burger King , and Popeyes brand names. Restaurant Brands International Inc. was founded in 1954 and is headquartered in Toronto, Canada. RESTAURANT BRANDS operates under Restaurants classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6000 people.
Restaurant Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Restaurant Brands. 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 Restaurant Brands 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 Restaurant Brands' important profitability drivers and their relationship over time.
Use Restaurant Brands 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 Restaurant Brands 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 Restaurant Brands will appreciate offsetting losses from the drop in the long position's value.Restaurant Brands Pair Trading
Restaurant Brands International Pair Trading Analysis
The ability to find closely correlated positions to Restaurant Brands could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Restaurant Brands 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 Restaurant Brands - 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 Restaurant Brands International to buy it.
The correlation of Restaurant Brands 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 Restaurant Brands moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Restaurant Brands 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 Restaurant Brands 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 Restaurant Brands position
In addition to having Restaurant Brands 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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Additional Information and Resources on Investing in Restaurant Stock
When determining whether Restaurant Brands is a strong investment it is important to analyze Restaurant Brands' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Restaurant Brands' future performance. For an informed investment choice regarding Restaurant Stock, refer to the following important reports:Check out Trending Equities. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Restaurant Brands' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Restaurant Brands 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 Restaurant Brands' income statement, its balance sheet, and the statement of cash flows.