Coca Cola Return On Equity vs. Net Income
| EEE Stock | EUR 33.90 0.10 0.30% |
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 Coca Cola HBC AG 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 Coca Cola HBC AG over time as well as its relative position and ranking within its peers.
Coca |
Coca Cola HBC Net Income vs. Return On Equity 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. Coca Cola HBC AG is rated # 3 in return on equity category among its peers. It is one of the top stocks in net income category among its peers making up about 3,525,773,196 of Net Income per Return On Equity. 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 Net Income vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Coca Cola |
| = | 0.16 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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.
Coca Cola |
| = | 547.2 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.
Coca Net Income Comparison
Coca Cola is currently under evaluation in net income category among its peers.
Coca Cola Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Coca Cola, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Coca Cola will eventually generate negative long term returns. The profitability progress is the general direction of Coca Cola's change in net profit over the period of time. It can combine multiple indicators of Coca Cola, 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.
Coca-Cola HBC AG produces, distributes, and sells non-alcoholic ready-to-drink beverages. The company was founded in 1969 and is headquartered in Steinhausen, Switzerland. COCA COLA is traded on Athens Stock Exchange in Greece.
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
Coca Cola HBC AG 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 Coca Cola HBC AG 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 HBC 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 Emerging Markets Funds Thematic Idea Now
Emerging Markets Funds
Fund or Etfs that invest in markets of developing countries. The Emerging Markets Funds theme has 41 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 Emerging Markets Funds Theme or any other thematic opportunities.
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Additional Tools for Coca Stock Analysis
When running Coca Cola's price analysis, check to measure Coca Cola'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 Coca Cola is operating at the current time. Most of Coca Cola's value examination focuses on studying past and present price action to predict the probability of Coca Cola's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Coca Cola's price. Additionally, you may evaluate how the addition of Coca Cola to your portfolios can decrease your overall portfolio volatility.