Georgia Power EBITDA vs. Cash Flow From Operations

GPJA Stock  USD 22.38  0.19  0.84%   
Considering Georgia Power's profitability and operating efficiency indicators, Georgia Power's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Georgia Power's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
4.8 B
Current Value
4.2 B
Quarterly Volatility
1.3 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Georgia Power's Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.31, whereas Days Sales Outstanding is forecasted to decline to 37.06. At present, Georgia Power's Income Tax Expense is projected to decrease significantly based on the last few years of reporting. The current year's Change To Netincome is expected to grow to about 176.7 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (9.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.370.4915
Way Down
Slightly volatile
Net Profit Margin0.120.2056
Way Down
Very volatile
Operating Profit Margin0.310.29
Notably Up
Very volatile
Pretax Profit Margin0.230.2499
Significantly Down
Slightly volatile
Return On Assets0.04040.0366
Significantly Up
Very volatile
Return On Equity0.120.0973
Fairly Up
Pretty Stable
For Georgia Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Georgia Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Georgia Power Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Georgia Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Georgia Power Co over time as well as its relative position and ranking within its peers.
  

Georgia Power's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
Is Electric Utilities 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 Georgia Power. If investors know Georgia 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 Georgia Power 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 Georgia Power is measured differently than its book value, which is the value of Georgia that is recorded on the company's balance sheet. Investors also form their own opinion of Georgia Power's value that differs from its market value or its book value, called intrinsic value, which is Georgia Power'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 Georgia Power's market value can be influenced by many factors that don't directly affect Georgia Power'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 Georgia Power's value and its price as these two are different measures arrived at by different means. Investors typically determine if Georgia Power is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Georgia Power'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.

Georgia Power Cash Flow From Operations vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Georgia Power's current stock value. Our valuation model uses many indicators to compare Georgia Power value to that of its competitors to determine the firm's financial worth.
Georgia Power Co is rated # 2 in ebitda category among its peers. It also is rated # 2 in cash flow from operations category among its peers making about  0.57  of Cash Flow From Operations per EBITDA. The ratio of EBITDA to Cash Flow From Operations for Georgia Power Co is roughly  1.76 . At present, Georgia Power's EBITDA is projected to decrease significantly based on the last few years of reporting. 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 Georgia Power's earnings, one of the primary drivers of an investment's value.

Georgia Cash Flow From Operations vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Georgia Power

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
4.85 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.

Georgia Power

Operating Cash Flow

 = 

EBITDA

-

Taxes

 = 
2.75 B
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.

Georgia Cash Flow From Operations Comparison

Georgia Power is currently under evaluation in cash flow from operations category among its peers.

Georgia Power Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Georgia Power, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Georgia Power will eventually generate negative long term returns. The profitability progress is the general direction of Georgia Power's change in net profit over the period of time. It can combine multiple indicators of Georgia Power, 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-9 M-9.4 M
Operating Income2.9 B2.9 B
Income Before Tax2.5 B2.1 B
Total Other Income Expense Net-406 M-385.7 M
Net Income2.1 B1.6 B
Income Tax Expense448 M528.7 M
Net Income From Continuing Ops1.6 B1.5 B
Net Income Applicable To Common Shares1.6 B1.4 B
Change To Netincome168.3 M176.7 M
Net Income Per Share 224.59  128.52 
Income Quality 1.32  1.69 
Net Income Per E B T 0.82  0.62 

Georgia Profitability Driver Comparison

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

Use Georgia Power 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 Georgia Power 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 Georgia Power will appreciate offsetting losses from the drop in the long position's value.

Georgia Power Pair Trading

Georgia Power Co Pair Trading Analysis

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

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When determining whether Georgia Power offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Georgia Power'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 Georgia Power Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Georgia Power Co Stock:
Check out Risk vs Return Analysis.
You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
To fully project Georgia Power's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Georgia Power 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 Georgia Power's income statement, its balance sheet, and the statement of cash flows.
Potential Georgia Power investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Georgia Power investors may work on each financial statement separately, they are all related. The changes in Georgia Power's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Georgia Power'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.