Tata Steel Return On Asset vs. Cash And Equivalents
| TSTH Stock | THB 0.72 0.01 1.41% |
For Tata Steel profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tata Steel to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tata Steel Public utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tata Steel's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tata Steel Public over time as well as its relative position and ranking within its peers.
Tata |
Tata Steel Public Cash And Equivalents vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Tata Steel's current stock value. Our valuation model uses many indicators to compare Tata Steel value to that of its competitors to determine the firm's financial worth. Tata Steel Public is currently regarded as top stock in return on asset category among its peers. It also is currently regarded as top stock in cash and equivalents category among its peers creating about 25,213,262,599 of Cash And Equivalents per Return On Asset. 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 Tata Steel's earnings, one of the primary drivers of an investment's value.Tata Cash And Equivalents vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Tata Steel |
| = | 0.0377 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Tata Steel |
| = | 950.54 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Tata Cash And Equivalents Comparison
Tata Steel is currently under evaluation in cash and equivalents category among its peers.
Tata Steel Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Tata Steel, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tata Steel will eventually generate negative long term returns. The profitability progress is the general direction of Tata Steel's change in net profit over the period of time. It can combine multiple indicators of Tata Steel, 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.
Tata Steel Public Company Limited, together with its subsidiaries, manufactures, distributes, and trades in steel bars, wire rods, and small section products primarily in Thailand. Tata Steel Public Company Limited is a subsidiary of T S Global Holdings Pte. TATA STEEL operates under Steel classification in Thailand and is traded on Stock Exchange of Thailand.
Tata Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Tata Steel. 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 Tata Steel 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 Tata Steel's important profitability drivers and their relationship over time.
Use Tata Steel 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 Tata Steel 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 Tata Steel will appreciate offsetting losses from the drop in the long position's value.Tata Steel Pair Trading
Tata Steel Public Pair Trading Analysis
The ability to find closely correlated positions to Tata Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tata Steel 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 Tata Steel - 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 Tata Steel Public to buy it.
The correlation of Tata Steel 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 Tata Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tata Steel Public 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 Tata Steel 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 Tata Steel position
In addition to having Tata Steel 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 Tata Stock
To fully project Tata Steel's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tata Steel Public 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 Tata Steel's income statement, its balance sheet, and the statement of cash flows.