COMPASS GROUP EBITDA vs. Total Debt
| XGR Stock | EUR 30.40 0.20 0.65% |
For COMPASS GROUP profitability analysis, we use financial ratios and fundamental drivers that measure the ability of COMPASS GROUP to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well COMPASS GROUP utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between COMPASS GROUP's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of COMPASS GROUP over time as well as its relative position and ranking within its peers.
COMPASS |
COMPASS GROUP Total Debt vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining COMPASS GROUP's current stock value. Our valuation model uses many indicators to compare COMPASS GROUP value to that of its competitors to determine the firm's financial worth. COMPASS GROUP is rated below average in ebitda category among its peers. It is rated below average in total debt category among its peers making up about 12.87 of Total Debt per EBITDA. 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 COMPASS GROUP's earnings, one of the primary drivers of an investment's value.COMPASS Total Debt vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
COMPASS GROUP |
| = | 345 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
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.
COMPASS GROUP |
| = | 4.44 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.
COMPASS Total Debt vs Competition
COMPASS GROUP is rated below average in total debt category among its peers. Total debt of Restaurants industry is at this time estimated at about 99.46 Billion. COMPASS GROUP holds roughly 4.44 Billion in total debt claiming about 4% of equities listed under Restaurants industry.
COMPASS GROUP Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in COMPASS GROUP, profitability is also one of the essential criteria for including it into their portfolios because, without profit, COMPASS GROUP will eventually generate negative long term returns. The profitability progress is the general direction of COMPASS GROUP's change in net profit over the period of time. It can combine multiple indicators of COMPASS GROUP, 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.
Compass Group PLC, together with its subsidiaries, operates as a food and support services company in North America, Europe, and internationally. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom. COMPASS ADR1 operates under Restaurants classification in Germany and is traded on Frankfurt Stock Exchange. It employs 548143 people.
COMPASS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on COMPASS GROUP. 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 COMPASS GROUP 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 COMPASS GROUP's important profitability drivers and their relationship over time.
Use COMPASS GROUP 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 COMPASS GROUP 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 COMPASS GROUP will appreciate offsetting losses from the drop in the long position's value.COMPASS GROUP Pair Trading
COMPASS GROUP Pair Trading Analysis
The ability to find closely correlated positions to COMPASS GROUP could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace COMPASS GROUP 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 COMPASS GROUP - 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 COMPASS GROUP to buy it.
The correlation of COMPASS GROUP 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 COMPASS GROUP moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if COMPASS GROUP 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 COMPASS GROUP 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 COMPASS GROUP position
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Other Information on Investing in COMPASS Stock
To fully project COMPASS GROUP's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of COMPASS GROUP 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 COMPASS GROUP's income statement, its balance sheet, and the statement of cash flows.