APA Return On Equity vs. Total Debt
| APA Stock | MXN 430.00 0.00 0.00% |
For APA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of APA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well APA Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between APA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of APA Corporation over time as well as its relative position and ranking within its peers.
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APA Corporation Total Debt vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining APA's current stock value. Our valuation model uses many indicators to compare APA value to that of its competitors to determine the firm's financial worth. APA Corporation is number one stock in return on equity category among its peers. It also is the top company in total debt category among its peers making up about 19,521,006,155 of Total Debt per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value APA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for APA'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.APA Total Debt 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.
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| = | 0.37 |
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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
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| = | 7.29 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
APA Total Debt vs Competition
APA Corporation is the top company in total debt category among its peers. Total debt of Oil & Gas E&P industry is presently estimated at about 1.29 Trillion. APA maintains roughly 7.29 Billion in total debt contributing less than 1% to all equities under Oil & Gas E&P industry.
APA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in APA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, APA will eventually generate negative long term returns. The profitability progress is the general direction of APA's change in net profit over the period of time. It can combine multiple indicators of APA, 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.
Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids . Apache Corporation was founded in 1954 and is based in Houston, Texas. APACHE CORP operates under Oil Gas EP classification in Mexico and is traded on Mexico Stock Exchange. It employs 3420 people.
APA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on APA. 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 APA 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 APA's important profitability drivers and their relationship over time.
Use APA 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 APA 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 APA will appreciate offsetting losses from the drop in the long position's value.APA Pair Trading
APA Corporation Pair Trading Analysis
The ability to find closely correlated positions to APA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace APA 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 APA - 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 APA Corporation to buy it.
The correlation of APA 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 APA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if APA Corporation 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 APA 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 APA position
In addition to having APA 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 Defense Thematic Idea Now
Defense
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 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 Defense Theme or any other thematic opportunities.
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Additional Tools for APA Stock Analysis
When running APA's price analysis, check to measure APA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy APA is operating at the current time. Most of APA's value examination focuses on studying past and present price action to predict the probability of APA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move APA's price. Additionally, you may evaluate how the addition of APA to your portfolios can decrease your overall portfolio volatility.