Rolls Royce Cash Flow From Operations vs. Price To Earnings To Growth
| RR Stock | 581.00 2.80 0.48% |
For Rolls Royce profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rolls Royce to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rolls Royce Holdings PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rolls Royce's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rolls Royce Holdings PLC over time as well as its relative position and ranking within its peers.
Rolls |
Rolls Royce Holdings Price To Earnings To Growth vs. Cash Flow From Operations Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Rolls Royce's current stock value. Our valuation model uses many indicators to compare Rolls Royce value to that of its competitors to determine the firm's financial worth.Rolls Price To Earnings To Growth vs. Cash Flow From Operations
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.
Rolls Royce |
| = | 2.48 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.
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
Rolls Royce |
| = | 0.54 X |
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.
Rolls Price To Earnings To Growth Comparison
Rolls Royce is currently under evaluation in price to earnings to growth category among its peers.
Rolls Royce Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Rolls Royce, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rolls Royce will eventually generate negative long term returns. The profitability progress is the general direction of Rolls Royce's change in net profit over the period of time. It can combine multiple indicators of Rolls Royce, 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 | 835 M | 876.8 M | |
| Operating Income | 1.9 B | 2 B | |
| Income Before Tax | 2.4 B | 2.5 B | |
| Total Other Income Expense Net | 483 M | 507.1 M | |
| Net Income | 2.4 B | 2.5 B | |
| Income Tax Expense | 23 M | 21.9 M | |
| Net Loss | -1.1 B | -1.1 B | |
| Net Income From Continuing Ops | 2.4 B | 2.5 B | |
| Net Interest Income | -426 M | -447.3 M | |
| Interest Income | 164 M | 172.2 M | |
| Change To Netincome | 2.5 B | 2.7 B |
Rolls Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Rolls Royce. 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 Rolls Royce 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 Rolls Royce's important profitability drivers and their relationship over time.
Use Rolls Royce 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 Rolls Royce 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 Rolls Royce will appreciate offsetting losses from the drop in the long position's value.Rolls Royce Pair Trading
Rolls Royce Holdings PLC Pair Trading Analysis
The ability to find closely correlated positions to Rolls Royce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rolls Royce 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 Rolls Royce - 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 Rolls Royce Holdings PLC to buy it.
The correlation of Rolls Royce 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 Rolls Royce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rolls Royce Holdings 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 Rolls Royce 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 Rolls Royce position
In addition to having Rolls Royce 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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Other Information on Investing in Rolls Stock
To fully project Rolls Royce's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rolls Royce Holdings 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 Rolls Royce's income statement, its balance sheet, and the statement of cash flows.