Whitehaven Coal Price To Sales vs. Return On Equity
| WC2 Stock | EUR 3.70 0.14 3.93% |
For Whitehaven Coal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Whitehaven Coal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Whitehaven Coal Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Whitehaven Coal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Whitehaven Coal Limited over time as well as its relative position and ranking within its peers.
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Whitehaven Coal Return On Equity vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Whitehaven Coal's current stock value. Our valuation model uses many indicators to compare Whitehaven Coal value to that of its competitors to determine the firm's financial worth. Whitehaven Coal Limited is rated first in price to sales category among its peers. It is rated first in return on equity category among its peers reporting about 0.72 of Return On Equity per Price To Sales. The ratio of Price To Sales to Return On Equity for Whitehaven Coal Limited is roughly 1.40 . 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 Whitehaven Coal's earnings, one of the primary drivers of an investment's value.Whitehaven Return On Equity vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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| = | 1.17 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.84 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Whitehaven Return On Equity Comparison
Whitehaven Coal is currently under evaluation in return on equity category among its peers.
Whitehaven Coal Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Whitehaven Coal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Whitehaven Coal will eventually generate negative long term returns. The profitability progress is the general direction of Whitehaven Coal's change in net profit over the period of time. It can combine multiple indicators of Whitehaven Coal, 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.
Whitehaven Coal Limited develops and operates coal mines in New South Wales. Whitehaven Coal Limited was founded in 1999 and is headquartered in Sydney, Australia. WHITEHAVEN COAL operates under Coal classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1600 people.
Whitehaven Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Whitehaven Coal. 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 Whitehaven Coal 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 Whitehaven Coal's important profitability drivers and their relationship over time.
Use Whitehaven Coal 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 Whitehaven Coal 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 Whitehaven Coal will appreciate offsetting losses from the drop in the long position's value.Whitehaven Coal Pair Trading
Whitehaven Coal Limited Pair Trading Analysis
The ability to find closely correlated positions to Whitehaven Coal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Whitehaven Coal 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 Whitehaven Coal - 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 Whitehaven Coal Limited to buy it.
The correlation of Whitehaven Coal 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 Whitehaven Coal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Whitehaven Coal 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 Whitehaven Coal 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 Whitehaven Coal position
In addition to having Whitehaven Coal 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 Whitehaven Stock
To fully project Whitehaven Coal's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Whitehaven Coal 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 Whitehaven Coal's income statement, its balance sheet, and the statement of cash flows.