Shriram Finance Total Debt vs. Operating Margin

SHRIRAMFIN   3,132  23.25  0.74%   
Based on the measurements of profitability obtained from Shriram Finance's financial statements, Shriram Finance Limited 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 Shriram Finance's ability to earn profits and add value for shareholders.
For Shriram Finance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shriram Finance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shriram Finance Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shriram Finance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shriram Finance Limited over time as well as its relative position and ranking within its peers.
  
Check out World Market Map.
Please note, there is a significant difference between Shriram Finance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shriram Finance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shriram Finance'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.

Shriram Finance Operating Margin vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Shriram Finance's current stock value. Our valuation model uses many indicators to compare Shriram Finance value to that of its competitors to determine the firm's financial worth.
Shriram Finance Limited is rated third in total debt category among its peers. It is currently regarded as top stock in operating margin category among its peers . The ratio of Total Debt to Operating Margin for Shriram Finance Limited is about  2,423,430,450,826 . 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 Shriram Finance's earnings, one of the primary drivers of an investment's value.

Shriram Total Debt vs. Competition

Shriram Finance Limited is rated third in total debt category among its peers. Total debt of Financials industry is at this time estimated at about 22.92 Trillion. Shriram Finance holds roughly 1.51 Trillion in total debt claiming about 7% of equities under Financials industry.
Total debt  Valuation  Revenue  Workforce  Capitalization

Shriram Operating Margin 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.

Shriram Finance

Total Debt

 = 

Bonds

+

Notes

 = 
1.51 T
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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Shriram Finance

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.62 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Shriram Operating Margin Comparison

Shriram Finance is currently under evaluation in operating margin category among its peers.

Shriram Finance Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Shriram Finance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shriram Finance will eventually generate negative long term returns. The profitability progress is the general direction of Shriram Finance's change in net profit over the period of time. It can combine multiple indicators of Shriram Finance, 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 Income263.5 M250.3 M
Operating Income99.9 B104.9 B
Income Before Tax99.6 B104.6 B
Total Other Income Expense Net-333.3 M-316.6 M
Net Income73.7 B77.3 B
Income Tax Expense25.7 B27 B
Net Interest Income102.5 B91.6 B
Interest Income315.5 M299.8 M
Net Income From Continuing Ops31.3 B28.4 B
Net Income Applicable To Common Shares69.1 B41.2 B

Shriram Profitability Driver Comparison

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

Use Shriram Finance 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 Shriram Finance 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 Shriram Finance will appreciate offsetting losses from the drop in the long position's value.

Shriram Finance Pair Trading

Shriram Finance Limited Pair Trading Analysis

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

In addition to having Shriram Finance 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 Food Products Thematic Idea Now

Food Products
Food Products Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Food Products theme has 61 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 Food Products Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in Shriram Stock

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