Atlas Copco Debt To Equity vs. Return On Asset
| ATLPF Stock | USD 16.56 0.21 1.28% |
For Atlas Copco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Atlas Copco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Atlas Copco AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Atlas Copco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Atlas Copco AB over time as well as its relative position and ranking within its peers.
Atlas |
Atlas Copco AB Return On Asset vs. Debt To Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Atlas Copco's current stock value. Our valuation model uses many indicators to compare Atlas Copco value to that of its competitors to determine the firm's financial worth. Atlas Copco AB is rated fourth in debt to equity category among its peers. It is number one stock in return on asset category among its peers reporting about 0.27 of Return On Asset per Debt To Equity. The ratio of Debt To Equity to Return On Asset for Atlas Copco AB is roughly 3.64 . 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 Atlas Copco's earnings, one of the primary drivers of an investment's value.Atlas Return On Asset vs. Debt To Equity
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Atlas Copco |
| = | 0.45 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Atlas Copco |
| = | 0.12 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Atlas Return On Asset Comparison
Atlas Copco is currently under evaluation in return on asset category among its peers.
Atlas Copco Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Atlas Copco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Atlas Copco will eventually generate negative long term returns. The profitability progress is the general direction of Atlas Copco's change in net profit over the period of time. It can combine multiple indicators of Atlas Copco, 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.
Atlas Copco AB, together with its subsidiaries, provides productivity solutions. The company was founded in 1873 and is headquartered in Nacka, Sweden. Atlas Copco operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 47986 people.
Atlas Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Atlas Copco. 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 Atlas Copco 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 Atlas Copco's important profitability drivers and their relationship over time.
Use Atlas Copco 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 Atlas Copco 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 Atlas Copco will appreciate offsetting losses from the drop in the long position's value.Atlas Copco Pair Trading
Atlas Copco AB Pair Trading Analysis
The ability to find closely correlated positions to Atlas Copco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Atlas Copco 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 Atlas Copco - 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 Atlas Copco AB to buy it.
The correlation of Atlas Copco 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 Atlas Copco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Atlas Copco AB 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 Atlas Copco 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 Atlas Copco position
In addition to having Atlas Copco 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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Other Information on Investing in Atlas Pink Sheet
To fully project Atlas Copco's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Atlas Copco AB 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 Atlas Copco's income statement, its balance sheet, and the statement of cash flows.