Eaton Plc Cash And Equivalents vs. Net Income
| E1TN34 Stock | BRL 147.45 0.29 0.20% |
For Eaton Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eaton Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eaton plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eaton Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eaton plc over time as well as its relative position and ranking within its peers.
Eaton |
Eaton plc Net Income vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Eaton Plc's current stock value. Our valuation model uses many indicators to compare Eaton Plc value to that of its competitors to determine the firm's financial worth. Eaton plc is one of the top stocks in cash and equivalents category among its peers. It also is one of the top stocks in net income category among its peers making up about 4.40 of Net Income per Cash And Equivalents. Comparative valuation analysis is a catch-all model that can be used if you cannot value Eaton Plc by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Eaton Plc'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.Eaton Net Income 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.
Eaton Plc |
| = | 505 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).
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.
Eaton Plc |
| = | 2.22 B |
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.
Eaton Net Income Comparison
Eaton Plc is currently under evaluation in net income category among its peers.
Eaton Plc Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Eaton Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eaton Plc will eventually generate negative long term returns. The profitability progress is the general direction of Eaton Plc's change in net profit over the period of time. It can combine multiple indicators of Eaton Plc, 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.
Eaton Corporation plc operates as a power management company worldwide. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland. EATON CORP operates under Specialty Industrial Machinery classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 85947 people.
Eaton Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Eaton Plc. 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 Eaton Plc 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 Eaton Plc's important profitability drivers and their relationship over time.
Use Eaton Plc 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 Eaton Plc 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 Eaton Plc will appreciate offsetting losses from the drop in the long position's value.Eaton Plc Pair Trading
Eaton plc Pair Trading Analysis
The ability to find closely correlated positions to Eaton Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eaton Plc 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 Eaton Plc - 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 Eaton plc to buy it.
The correlation of Eaton Plc 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 Eaton Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eaton plc 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 Eaton Plc 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 Eaton Plc position
In addition to having Eaton Plc 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 Theme ETFs Thematic Idea Now
Theme ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Theme ETFs theme has 484 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 Theme ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in Eaton Stock
When determining whether Eaton plc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Eaton Plc'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 Eaton Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Eaton Plc Stock:Check out Investing Opportunities. For information on how to trade Eaton Stock refer to our How to Trade Eaton Stock guide.You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Eaton Plc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Eaton plc 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 Eaton Plc's income statement, its balance sheet, and the statement of cash flows.