Prudential Plc Total Debt vs. Cash And Equivalents

PRU Stock   633.20  0.20  0.03%   
Based on the measurements of profitability obtained from Prudential Plc's financial statements, Prudential plc may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Prudential Plc's ability to earn profits and add value for shareholders.
For Prudential Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Prudential Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Prudential plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Prudential Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Prudential plc over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Prudential Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prudential Plc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prudential Plc'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.

Prudential plc Cash And Equivalents vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Prudential Plc's current stock value. Our valuation model uses many indicators to compare Prudential Plc value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.150UYNHOCCEIREDVATMPRU 010B20B30B40B50B60B70B 020B40B60B80B100B
Prudential plc is rated top company in total debt category among its peers. It also is considered to be number one stock in cash and equivalents category among its peers creating about  1.28  of Cash And Equivalents per Total Debt. At present, Prudential Plc's Cash And Equivalents 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 Prudential Plc's earnings, one of the primary drivers of an investment's value.

Prudential Total Debt vs. Competition

Prudential plc is rated top company in total debt category among its peers. Total debt of Financials industry is at this time estimated at about 102.33 Billion. Prudential Plc holds roughly 4.87 Billion in total debt claiming about 5% of equities under Financials industry.
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Total debt  Revenue  Capitalization  Workforce  Valuation

Prudential Cash And Equivalents vs. Total Debt

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.

Prudential Plc

Total Debt

 = 

Bonds

+

Notes

 = 
4.87 B
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.
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.

Prudential Plc

Cash

 = 

Bank Deposits

+

Liquidities

 = 
6.26 B
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).

Prudential Cash And Equivalents Comparison

6.3B26.1M84.7M69.5B100%
Prudential Plc is currently under evaluation in cash and equivalents category among its peers.

Prudential Plc Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Prudential Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Prudential Plc will eventually generate negative long term returns. The profitability progress is the general direction of Prudential Plc's change in net profit over the period of time. It can combine multiple indicators of Prudential 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income551.5 M496.4 M
Income Before Tax2.1 B1.5 B
Income Tax Expense385 M487 M
Operating Income1.7 B1.6 B
Net Income2.3 B1.5 B
Total Other Income Expense Net2.1 B2.2 B
Net Income Applicable To Common Shares1.1 B1.3 B
Net Income From Continuing Ops1.7 B1.8 B
Net Interest Income-172 M-180.6 M
Interest Income4.4 B4.7 B
Change To Netincome-576.1 M-547.3 M

Prudential Profitability Driver Comparison

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

Use Prudential 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 Prudential 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 Prudential Plc will appreciate offsetting losses from the drop in the long position's value.

Prudential Plc Pair Trading

Prudential plc Pair Trading Analysis

The ability to find closely correlated positions to Prudential 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 Prudential 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 Prudential 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 Prudential plc to buy it.
The correlation of Prudential 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 Prudential Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Prudential 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 Prudential 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Prudential Plc position

In addition to having Prudential 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.

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Non-Metallic and Industrial Metal Mining
Non-Metallic and Industrial Metal Mining Theme
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Other Information on Investing in Prudential Stock

To fully project Prudential Plc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Prudential 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 Prudential Plc's income statement, its balance sheet, and the statement of cash flows.
Potential Prudential Plc investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Prudential Plc investors may work on each financial statement separately, they are all related. The changes in Prudential Plc's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Prudential Plc'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.