BROWN FORMAN Net Income vs. Total Debt
Considering BROWN FORMAN's profitability and operating efficiency indicators, BROWN FORMAN P may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in January. Profitability indicators assess BROWN FORMAN's ability to earn profits and add value for shareholders.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
For BROWN FORMAN profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BROWN FORMAN to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BROWN FORMAN P utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BROWN FORMAN's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BROWN FORMAN P over time as well as its relative position and ranking within its peers.
BROWN |
Is Beer and Liquor space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of BROWN FORMAN. If investors know BROWN will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about BROWN FORMAN listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of BROWN FORMAN P is measured differently than its book value, which is the value of BROWN that is recorded on the company's balance sheet. Investors also form their own opinion of BROWN FORMAN's value that differs from its market value or its book value, called intrinsic value, which is BROWN FORMAN's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because BROWN FORMAN's market value can be influenced by many factors that don't directly affect BROWN FORMAN's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between BROWN FORMAN's value and its price as these two are different measures arrived at by different means. Investors typically determine if BROWN FORMAN is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BROWN FORMAN's 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.
BROWN FORMAN P Total Debt vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BROWN FORMAN's current stock value. Our valuation model uses many indicators to compare BROWN FORMAN value to that of its competitors to determine the firm's financial worth. BROWN FORMAN P is number one stock in net income category among its peers. It also is the top company in total debt category among its peers making up about 1.87 of Total Debt per Net Income. 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 BROWN FORMAN's earnings, one of the primary drivers of an investment's value.BROWN Total Debt vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
BROWN FORMAN |
| = | 341.11 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
BROWN FORMAN |
| = | 638.33 M |
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.
BROWN Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BROWN FORMAN. 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 BROWN FORMAN 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 BROWN FORMAN's important profitability drivers and their relationship over time.
Use BROWN FORMAN 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 BROWN FORMAN 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 BROWN FORMAN will appreciate offsetting losses from the drop in the long position's value.BROWN FORMAN Pair Trading
BROWN FORMAN P Pair Trading Analysis
The ability to find closely correlated positions to Principal Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Principal Financial 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 Principal Financial - 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 Principal Financial Group to buy it.
The correlation of Principal Financial 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 Principal Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Principal Financial 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 Principal Financial 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 BROWN FORMAN position
In addition to having BROWN FORMAN 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 Services Thematic Idea Now
Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 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 Services Theme or any other thematic opportunities.
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Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Tools for BROWN Stock
When running BROWN FORMAN's price analysis, check to measure BROWN FORMAN'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 BROWN FORMAN is operating at the current time. Most of BROWN FORMAN's value examination focuses on studying past and present price action to predict the probability of BROWN FORMAN's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BROWN FORMAN's price. Additionally, you may evaluate how the addition of BROWN FORMAN to your portfolios can decrease your overall portfolio volatility.
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