Transalta Total Debt vs. Operating Margin
| TA-PD Preferred Stock | CAD 15.33 0.07 0.46% |
For Transalta profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Transalta to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Transalta A Cum utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Transalta's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Transalta A Cum over time as well as its relative position and ranking within its peers.
Transalta |
Transalta A Cum Operating Margin vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Transalta's current stock value. Our valuation model uses many indicators to compare Transalta value to that of its competitors to determine the firm's financial worth. Transalta A Cum is rated second in total debt category among its peers. It is rated fourth in operating margin category among its peers . The ratio of Total Debt to Operating Margin for Transalta A Cum is about 10,827,137,546 . 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 Transalta's earnings, one of the primary drivers of an investment's value.Transalta Total Debt vs. Competition
Transalta A Cum is rated second in total debt category among its peers. Total debt of Utilities - Independent Power Producers industry is at this time estimated at about 40.2 Billion. Transalta holds roughly 2.33 Billion in total debt claiming about 6% of Utilities - Independent Power Producers industry.
Transalta 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.
Transalta |
| = | 2.33 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.
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.
Transalta |
| = | 0.22 % |
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.
Transalta Operating Margin Comparison
Transalta is rated third in operating margin category among its peers.
Transalta Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Transalta, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Transalta will eventually generate negative long term returns. The profitability progress is the general direction of Transalta's change in net profit over the period of time. It can combine multiple indicators of Transalta, 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.
TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia. TransAlta Corporation was founded in 1909 and is headquartered in Calgary, Canada. TRANSALTA CORP operates under Utilities - Independent Power Producers classification in Canada and is traded on Toronto Stock Exchange. It employs 1883 people.
Transalta Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Transalta. 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 Transalta 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 Transalta's important profitability drivers and their relationship over time.
Use Transalta 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 Transalta 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 Transalta will appreciate offsetting losses from the drop in the long position's value.Transalta Pair Trading
Transalta A Cum Pair Trading Analysis
The ability to find closely correlated positions to Transalta could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Transalta 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 Transalta - 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 Transalta A Cum to buy it.
The correlation of Transalta 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 Transalta moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Transalta A Cum 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 Transalta 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 Transalta position
In addition to having Transalta 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 Office Supplies Thematic Idea Now
Office Supplies
Companies producing and selling office supplies, and accessories. The Office Supplies theme has 43 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 Office Supplies Theme or any other thematic opportunities.
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Additional Tools for Transalta Preferred Stock Analysis
When running Transalta's price analysis, check to measure Transalta'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 Transalta is operating at the current time. Most of Transalta's value examination focuses on studying past and present price action to predict the probability of Transalta's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Transalta's price. Additionally, you may evaluate how the addition of Transalta to your portfolios can decrease your overall portfolio volatility.