River Net Income vs. Return On Equity
| RMMC Stock | 177.50 1.00 0.56% |
Net Loss | First Reported 2015-01-31 | Previous Quarter -27.3 M | Current Value 3.7 M | Quarterly Volatility 14.4 M |
For River profitability analysis, we use financial ratios and fundamental drivers that measure the ability of River to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well River and Mercantile utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between River's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of River and Mercantile over time as well as its relative position and ranking within its peers.
River |
River and Mercantile Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining River's current stock value. Our valuation model uses many indicators to compare River value to that of its competitors to determine the firm's financial worth. River and Mercantile is currently regarded as top stock in net income category among its peers. It also is currently regarded as top stock in return on equity category among its peers . The ratio of Net Income to Return On Equity for River and Mercantile is about 45,018 . At this time, River's Net Loss is comparatively stable compared to the past year. 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 River's earnings, one of the primary drivers of an investment's value.River Return On Equity vs. Net Income
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.
River |
| = | 2.21 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.
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.
River |
| = | 48.99 |
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.
River Return On Equity Comparison
River is currently under evaluation in return on equity category among its peers.
River Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in River, profitability is also one of the essential criteria for including it into their portfolios because, without profit, River will eventually generate negative long term returns. The profitability progress is the general direction of River's change in net profit over the period of time. It can combine multiple indicators of River, 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 | ||
| Operating Income | -48.1 M | -45.7 M | |
| Income Before Tax | -48.1 M | -45.7 M | |
| Net Loss | -48.1 M | -45.7 M | |
| Net Interest Income | 43.4 K | 45.6 K | |
| Interest Income | 43.4 K | 45.6 K | |
| Net Income From Continuing Ops | 2 M | 1.9 M | |
| Income Tax Expense | 2 M | 2.7 M | |
| Total Other Income Expense Net | -4.5 K | -4.3 K | |
| Net Income Applicable To Common Shares | 58.3 M | 61.2 M |
River Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on River. 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 River 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 River's important profitability drivers and their relationship over time.
Use River 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 River 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 River will appreciate offsetting losses from the drop in the long position's value.River Pair Trading
River and Mercantile Pair Trading Analysis
The ability to find closely correlated positions to River could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace River 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 River - 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 River and Mercantile to buy it.
The correlation of River 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 River moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if River and Mercantile 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 River 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 River position
In addition to having River 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 Long Short Funds Thematic Idea Now
Long Short Funds
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 42 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 Long Short Funds Theme or any other thematic opportunities.
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Additional Tools for River Stock Analysis
When running River's price analysis, check to measure River'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 River is operating at the current time. Most of River's value examination focuses on studying past and present price action to predict the probability of River's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move River's price. Additionally, you may evaluate how the addition of River to your portfolios can decrease your overall portfolio volatility.