Advance Auto Return On Equity vs. Cash And Equivalents
| A1AP34 Stock | BRL 16.85 0.05 0.30% |
For Advance Auto profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Advance Auto to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Advance Auto Parts utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Advance Auto's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Advance Auto Parts over time as well as its relative position and ranking within its peers.
Advance |
Advance Auto Parts Cash And Equivalents vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Advance Auto's current stock value. Our valuation model uses many indicators to compare Advance Auto value to that of its competitors to determine the firm's financial worth. Advance Auto Parts is number one stock in return on equity category among its peers. It also is number one stock in cash and equivalents category among its peers creating about 5,457,098,574 of Cash And Equivalents per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Advance Auto by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Advance Auto's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Advance Cash And Equivalents 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.
Advance Auto |
| = | 0.16 |
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.
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.
Advance Auto |
| = | 880.23 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).
Advance Cash And Equivalents Comparison
Advance Auto is currently under evaluation in cash and equivalents category among its peers.
Advance Auto Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Advance Auto, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Advance Auto will eventually generate negative long term returns. The profitability progress is the general direction of Advance Auto's change in net profit over the period of time. It can combine multiple indicators of Advance Auto, 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.
Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company was founded in 1929 and is based in Raleigh, North Carolina. ADVANCE AUTODRN operates under Specialty Retail classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 40000 people.
Advance Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Advance Auto. 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 Advance Auto 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 Advance Auto's important profitability drivers and their relationship over time.
Use Advance Auto 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 Advance Auto 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 Advance Auto will appreciate offsetting losses from the drop in the long position's value.Advance Auto Pair Trading
Advance Auto Parts Pair Trading Analysis
The ability to find closely correlated positions to Advance Auto could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advance Auto 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 Advance Auto - 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 Advance Auto Parts to buy it.
The correlation of Advance Auto 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 Advance Auto moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advance Auto Parts 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 Advance Auto 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 Advance Auto position
In addition to having Advance Auto 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?
Run Momentum Thematic Idea Now
Momentum
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Momentum Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in Advance Stock
When determining whether Advance Auto Parts is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Advance Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Advance Auto Parts Stock. Highlighted below are key reports to facilitate an investment decision about Advance Auto Parts Stock:Check out Trending Equities. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Advance Auto's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Advance Auto Parts 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 Advance Auto's income statement, its balance sheet, and the statement of cash flows.