Coca Cola Return On Asset vs. Revenue
| CCC3 Stock | 59.52 0.92 1.52% |
For Coca Cola profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Coca Cola to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The Coca Cola utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Coca Cola's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The Coca Cola over time as well as its relative position and ranking within its peers.
Coca |
Coca Cola Revenue vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Coca Cola's current stock value. Our valuation model uses many indicators to compare Coca Cola value to that of its competitors to determine the firm's financial worth. The Coca Cola is number one stock in return on asset category among its peers. It also is the top company in revenue category among its peers totaling about 525,721,271,394 of Revenue per Return On Asset. 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 Coca Cola's earnings, one of the primary drivers of an investment's value.Coca Revenue vs. Return On Asset
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.
Coca Cola |
| = | 0.0818 |
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.
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.
Coca Cola |
| = | 43 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.
Coca Revenue vs Competition
The Coca Cola is the top company in revenue category among its peers. Market size based on revenue of Beverages-Non-Alcoholic industry is currently estimated at about 2.39 Trillion. Coca Cola claims roughly 43 Billion in revenue contributing just under 2% to stocks in Beverages-Non-Alcoholic industry.
Coca Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Coca Cola. 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 Coca Cola 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 Coca Cola's important profitability drivers and their relationship over time.
Use Coca Cola 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 Coca Cola 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 Coca Cola will appreciate offsetting losses from the drop in the long position's value.Coca Cola Pair Trading
The Coca Cola Pair Trading Analysis
The ability to find closely correlated positions to Coca Cola could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Coca Cola 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 Coca Cola - 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 The Coca Cola to buy it.
The correlation of Coca Cola 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 Coca Cola moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Coca Cola 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 Coca Cola 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 Coca Cola position
In addition to having Coca Cola 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 Utilities Thematic Idea Now
Utilities
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities theme has 61 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 Utilities Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Coca Stock
When determining whether Coca Cola offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Coca Cola's 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 The Coca Cola Stock. Outlined below are crucial reports that will aid in making a well-informed decision on The Coca Cola Stock:Check out Trending Equities. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Coca Cola's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Coca Cola 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 Coca Cola's income statement, its balance sheet, and the statement of cash flows.