Westpac Banking Total Debt vs. Net Income
| WBCPJ Stock | 103.75 0.01 0.01% |
For Westpac Banking profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Westpac Banking to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Westpac Banking utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Westpac Banking's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Westpac Banking over time as well as its relative position and ranking within its peers.
Westpac |
Westpac Banking Net Income vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Westpac Banking's current stock value. Our valuation model uses many indicators to compare Westpac Banking value to that of its competitors to determine the firm's financial worth. Westpac Banking is rated first in total debt category among its peers. It is rated first in net income category among its peers making up about 0.32 of Net Income per Total Debt. The ratio of Total Debt to Net Income for Westpac Banking is roughly 3.15 . At present, Westpac Banking's Net Income is projected to decrease significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Westpac Banking by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Westpac Banking's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Westpac Total Debt vs. Competition
Westpac Banking is rated first in total debt category among its peers. Total debt of Energy industry is at this time estimated at about 26.59 Billion. Westpac Banking totals roughly 22.69 Billion in total debt claiming about 85% of equities under Energy industry.
Westpac Net Income 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.
Westpac Banking |
| = | 22.69 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.
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.
Westpac Banking |
| = | 7.2 B |
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.
Westpac Net Income Comparison
Westpac Banking is currently under evaluation in net income category among its peers.
Westpac Banking Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Westpac Banking, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Westpac Banking will eventually generate negative long term returns. The profitability progress is the general direction of Westpac Banking's change in net profit over the period of time. It can combine multiple indicators of Westpac Banking, 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 | ||
| Net Interest Income | 18.3 B | 18.3 B | |
| Income Before Tax | 10.3 B | 7.5 B | |
| Net Income Applicable To Common Shares | 4.9 B | 5.1 B | |
| Net Income | 7.2 B | 5 B | |
| Interest Income | 43.8 B | 33.5 B | |
| Net Income From Continuing Ops | 7.2 B | 5 B | |
| Income Tax Expense | 1.8 B | 2.4 B | |
| Change To Netincome | 3.7 B | 3.9 B |
Westpac Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Westpac Banking. 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 Westpac Banking 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 Westpac Banking's important profitability drivers and their relationship over time.
Use Westpac Banking 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 Westpac Banking 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 Westpac Banking will appreciate offsetting losses from the drop in the long position's value.Westpac Banking Pair Trading
Westpac Banking Pair Trading Analysis
The ability to find closely correlated positions to Westpac Banking could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Westpac Banking 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 Westpac Banking - 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 Westpac Banking to buy it.
The correlation of Westpac Banking 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 Westpac Banking moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Westpac Banking 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 Westpac Banking 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 Westpac Banking position
In addition to having Westpac Banking 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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Dynamically calculated list of top equities currently trending upward via a buy-out by investors. The Most Shorted Equities theme has 73 constituents at this time.
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Other Information on Investing in Westpac Stock
To fully project Westpac Banking's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Westpac Banking 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 Westpac Banking's income statement, its balance sheet, and the statement of cash flows.