Brookfield Business Cash And Equivalents vs. Return On Asset

BBUC Stock   36.73  0.49  1.32%   
Based on Brookfield Business' profitability indicators, Brookfield Business' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Brookfield Business' ability to earn profits and add value for shareholders.
 
Cash And Equivalents  
First Reported
2010-12-31
Previous Quarter
B
Current Value
903.1 M
Quarterly Volatility
70.7 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Brookfield Business' Price To Sales Ratio is very stable compared to the past year. As of the 15th of December 2024, Days Sales Outstanding is likely to grow to 88.68, while EV To Sales is likely to drop 0.86. At this time, Brookfield Business' Net Income Applicable To Common Shares is very stable compared to the past year. As of the 15th of December 2024, Net Income is likely to grow to about 3 B, while Accumulated Other Comprehensive Income is likely to drop (383.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.110.1157
Notably Down
Very volatile
For Brookfield Business profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brookfield Business to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brookfield Business Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brookfield Business's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brookfield Business Corp over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Please note, there is a significant difference between Brookfield Business' value and its price as these two are different measures arrived at by different means. Investors typically determine if Brookfield Business is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brookfield Business' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Brookfield Business Corp Return On Asset vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Brookfield Business's current stock value. Our valuation model uses many indicators to compare Brookfield Business value to that of its competitors to determine the firm's financial worth.
Brookfield Business Corp is rated below average in cash and equivalents category among its peers. It is rated below average in return on asset category among its peers . The ratio of Cash And Equivalents to Return On Asset for Brookfield Business Corp is about  90,303,030,303 . At this time, Brookfield Business' Cash And Equivalents is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brookfield Business by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brookfield Business' 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.

Brookfield Return On Asset 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.

Brookfield Business

Cash

 = 

Bank Deposits

+

Liquidities

 = 
894 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).
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.

Brookfield Business

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0099
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.

Brookfield Return On Asset Comparison

Brookfield Business is currently under evaluation in return on asset category among its peers.

Brookfield Business Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Brookfield Business, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brookfield Business will eventually generate negative long term returns. The profitability progress is the general direction of Brookfield Business' change in net profit over the period of time. It can combine multiple indicators of Brookfield Business, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-365 M-383.2 M
Interest Income461.1 M377.9 M
Operating Income838.2 M502.9 M
Income Before Tax-911 M-865.5 M
Total Other Income Expense Net-654 M-686.7 M
Net Income Applicable To Common SharesB1.1 B
Net Income2.8 BB
Income Tax Expense72 M75.6 M
Net Interest Income-878 M-921.9 M
Net Loss-983 M-933.9 M
Change To Netincome-953.1 M-905.4 M
Net Income Per Share 5.25  5.51 
Income Quality 0.27  0.28 
Net Loss(0.57)(0.54)

Brookfield Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Brookfield Business. 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 Brookfield Business 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 Brookfield Business' important profitability drivers and their relationship over time.

Use Brookfield Business 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 Brookfield Business 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 Brookfield Business will appreciate offsetting losses from the drop in the long position's value.

Brookfield Business Pair Trading

Brookfield Business Corp Pair Trading Analysis

The ability to find closely correlated positions to Brookfield Business could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brookfield Business 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 Brookfield Business - 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 Brookfield Business Corp to buy it.
The correlation of Brookfield Business 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 Brookfield Business moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brookfield Business Corp 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 Brookfield Business 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Brookfield Business position

In addition to having Brookfield Business 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 Video Games Thematic Idea Now

Video Games
Video Games Theme
Companies that are involved in the building and marketing of video games or gaming software. The Video Games theme has 24 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 Video Games Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Brookfield Business Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Brookfield Business' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Brookfield Business Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Brookfield Business Corp Stock:
Check out Trending Equities.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
To fully project Brookfield Business' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Brookfield Business Corp 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 Brookfield Business' income statement, its balance sheet, and the statement of cash flows.
Potential Brookfield Business investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Brookfield Business investors may work on each financial statement separately, they are all related. The changes in Brookfield Business's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Brookfield Business's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.