Wipro Return On Asset vs. Total Debt
| WIPRO Stock | 305.20 7.55 2.41% |
For Wipro profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wipro to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wipro Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wipro's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wipro Limited over time as well as its relative position and ranking within its peers.
Wipro |
Wipro Limited Total Debt vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Wipro's current stock value. Our valuation model uses many indicators to compare Wipro value to that of its competitors to determine the firm's financial worth. Wipro Limited is rated first in return on asset category among its peers. It is rated first in total debt category among its peers making up about 2,152,274,509,804 of Total Debt per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Wipro by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Wipro'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.Wipro Total Debt 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.
Wipro |
| = | 0.0765 |
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.
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.
Wipro |
| = | 164.65 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.
Wipro Total Debt vs Competition
Wipro Limited is rated first in total debt category among its peers. Total debt of Information Technology industry is at this time estimated at about 690.37 Billion. Wipro totals roughly 164.65 Billion in total debt claiming about 24% of equities under Information Technology industry.
Wipro Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Wipro, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wipro will eventually generate negative long term returns. The profitability progress is the general direction of Wipro's change in net profit over the period of time. It can combine multiple indicators of Wipro, 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 | ||
| Accumulated Other Comprehensive Income | 105.2 B | 110.5 B | |
| Operating Income | 135.4 B | 71.4 B | |
| Income Before Tax | 147.2 B | 79.8 B | |
| Total Other Income Expense Net | 11.8 B | 12.4 B | |
| Net Income | 110.5 B | 64 B | |
| Income Tax Expense | 36.1 B | 37.9 B | |
| Net Income From Continuing Ops | 111.1 B | 106.4 B | |
| Net Income Applicable To Common Shares | 130.5 B | 104.4 B | |
| Interest Income | 19.5 B | 12.6 B | |
| Net Interest Income | 6.9 B | 9.7 B | |
| Change To Netincome | 81.7 M | 85.7 M |
Wipro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Wipro. 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 Wipro 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 Wipro's important profitability drivers and their relationship over time.
Use Wipro 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 Wipro 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 Wipro will appreciate offsetting losses from the drop in the long position's value.Wipro Pair Trading
Wipro Limited Pair Trading Analysis
The ability to find closely correlated positions to Wipro could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wipro 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 Wipro - 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 Wipro Limited to buy it.
The correlation of Wipro 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 Wipro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wipro Limited 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 Wipro 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 Wipro position
In addition to having Wipro 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 High Dividend Yield ETFs Thematic Idea Now
High Dividend Yield ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The High Dividend Yield ETFs theme has 107 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 High Dividend Yield ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Wipro Stock
To fully project Wipro's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Wipro Limited 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 Wipro's income statement, its balance sheet, and the statement of cash flows.