Rani Therapeutics Return On Equity vs. Current Ratio
| RANI Stock | USD 2.02 0.03 1.51% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (2.64) | Current Value (2.51) | Quarterly Volatility 1.0866639 |
For Rani Therapeutics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rani Therapeutics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rani Therapeutics Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rani Therapeutics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rani Therapeutics Holdings over time as well as its relative position and ranking within its peers.
Rani |
Is Biotechnology 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 Rani Therapeutics. If investors know Rani 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 Rani Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.05) | Quarterly Revenue Growth (1.00) | Return On Assets (0.57) | Return On Equity (2.25) |
The market value of Rani Therapeutics is measured differently than its book value, which is the value of Rani that is recorded on the company's balance sheet. Investors also form their own opinion of Rani Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Rani Therapeutics' 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 Rani Therapeutics' market value can be influenced by many factors that don't directly affect Rani Therapeutics' 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 Rani Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Rani Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rani Therapeutics' 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.
Rani Therapeutics Current Ratio vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Rani Therapeutics's current stock value. Our valuation model uses many indicators to compare Rani Therapeutics value to that of its competitors to determine the firm's financial worth. Rani Therapeutics Holdings is rated below average in return on equity category among its peers. It is rated below average in current ratio category among its peers . As of now, Rani Therapeutics' Return On Equity is decreasing as compared to previous years. 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 Rani Therapeutics' earnings, one of the primary drivers of an investment's value.Rani Current Ratio 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.
Rani Therapeutics |
| = | -2.25 |
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.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Rani Therapeutics |
| = | 14.02 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Rani Current Ratio Comparison
Rani Therapeutics is currently under evaluation in current ratio category among its peers.
Rani Therapeutics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Rani Therapeutics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rani Therapeutics will eventually generate negative long term returns. The profitability progress is the general direction of Rani Therapeutics' change in net profit over the period of time. It can combine multiple indicators of Rani Therapeutics, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -12 K | -12.6 K | |
| Net Interest Income | -1.1 M | -1 M | |
| Interest Income | 3.4 M | 3.6 M | |
| Operating Income | -66.1 M | -69.4 M | |
| Net Loss | -71.2 M | -74.7 M | |
| Income Before Tax | -67.9 M | -71.3 M | |
| Total Other Income Expense Net | -1.8 M | -1.7 M | |
| Net Loss | -55.1 M | -52.3 M | |
| Net Loss | -34 M | -35.7 M | |
| Income Tax Expense | -33.9 M | -32.2 M | |
| Non Operating Income Net Other | 1.1 M | 998.4 K | |
| Change To Netincome | 18.1 M | 19.1 M | |
| Net Loss | (1.33) | (1.40) | |
| Income Quality | 1.51 | 0.76 | |
| Net Income Per E B T | 0.50 | 0.99 |
Rani Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Rani Therapeutics. 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 Rani Therapeutics 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 Rani Therapeutics' important profitability drivers and their relationship over time.
Use Rani Therapeutics 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 Rani Therapeutics 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 Rani Therapeutics will appreciate offsetting losses from the drop in the long position's value.Rani Therapeutics Pair Trading
Rani Therapeutics Holdings Pair Trading Analysis
The ability to find closely correlated positions to Rani Therapeutics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rani Therapeutics 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 Rani Therapeutics - 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 Rani Therapeutics Holdings to buy it.
The correlation of Rani Therapeutics 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 Rani Therapeutics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rani Therapeutics 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 Rani Therapeutics 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 Rani Therapeutics position
In addition to having Rani Therapeutics 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?
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Check out Your Equity Center. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
To fully project Rani Therapeutics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rani Therapeutics 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 Rani Therapeutics' income statement, its balance sheet, and the statement of cash flows.