PT Adaro Return On Equity vs. Revenue
| A64 Stock | EUR 0.15 0.01 6.25% |
For PT Adaro profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PT Adaro to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PT Adaro Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PT Adaro's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PT Adaro Energy over time as well as its relative position and ranking within its peers.
A64 |
PT Adaro Energy Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining PT Adaro's current stock value. Our valuation model uses many indicators to compare PT Adaro value to that of its competitors to determine the firm's financial worth. PT Adaro Energy is number one stock in return on equity category among its peers. It is rated second in revenue category among its peers totaling about 7,755,862,471 of Revenue per Return On Equity. 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 PT Adaro's earnings, one of the primary drivers of an investment's value.A64 Revenue 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.
PT Adaro |
| = | 0.51 |
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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
PT Adaro |
| = | 3.99 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
A64 Revenue vs Competition
PT Adaro Energy is rated second in revenue category among its peers. Market size based on revenue of Coal industry is presently estimated at about 24.6 Billion. PT Adaro retains roughly 3.99 Billion in revenue claiming about 16% of stocks in Coal industry.
PT Adaro Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in PT Adaro, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PT Adaro will eventually generate negative long term returns. The profitability progress is the general direction of PT Adaro's change in net profit over the period of time. It can combine multiple indicators of PT Adaro, 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.
PT Adaro Energy Tbk, together with its subsidiaries, engages in trading, hauling, services, industry, workshop, mining, and construction activities of coal industry in Indonesia. PT Adaro Energy Tbk was founded in 2004 and is headquartered in Jakarta, Indonesia. PT Adaro operates under Coal classification in Germany and is traded on Frankfurt Stock Exchange. It employs 10436 people.
A64 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on PT Adaro. 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 PT Adaro 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 PT Adaro's important profitability drivers and their relationship over time.
Use PT Adaro 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 PT Adaro 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 PT Adaro will appreciate offsetting losses from the drop in the long position's value.PT Adaro Pair Trading
PT Adaro Energy Pair Trading Analysis
The ability to find closely correlated positions to PT Adaro could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PT Adaro 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 PT Adaro - 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 PT Adaro Energy to buy it.
The correlation of PT Adaro 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 PT Adaro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PT Adaro Energy 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 PT Adaro 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 PT Adaro position
In addition to having PT Adaro 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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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 Strategy ETFs Theme or any other thematic opportunities.
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Other Information on Investing in A64 Stock
To fully project PT Adaro's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PT Adaro Energy 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 PT Adaro's income statement, its balance sheet, and the statement of cash flows.