Red Hat Current Liabilities vs. Retained Earnings

Based on Red Hat's profitability indicators, Red Hat may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess Red Hat's ability to earn profits and add value for shareholders.
For Red Hat profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Red Hat to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Red Hat utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Red Hat's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Red Hat over time as well as its relative position and ranking within its peers.
  
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.
Please note, there is a significant difference between Red Hat's value and its price as these two are different measures arrived at by different means. Investors typically determine if Red Hat is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Red Hat's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Red Hat Retained Earnings vs. Current Liabilities Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Red Hat's current stock value. Our valuation model uses many indicators to compare Red Hat value to that of its competitors to determine the firm's financial worth.
Red Hat is currently regarded as top stock in current liabilities category among related companies. It is currently regarded as top stock in retained earnings category among related companies reporting about  0.68  of Retained Earnings per Current Liabilities. The ratio of Current Liabilities to Retained Earnings for Red Hat is roughly  1.46 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Red Hat by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Red Hat'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. 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 Red Hat's earnings, one of the primary drivers of an investment's value.

Red Retained Earnings vs. Current Liabilities

Current Liabilities is the company's short term debt. This usually includes obligations that are due within the next 12 months or within one fiscal year. Current liabilities are very important in analyzing a company's financial health as it requires the company to convert some of its current assets into cash.

Red Hat

Current Liabilities

 = 

Payables

+

Accrued Debt

 = 
1.56 B
Current liabilities appear on the company's balance sheet and include all short term debt accounts, accounts and notes payable, accrued liabilities as well as current payments due on the long-term loans. One of the most useful applications of Current Liabilities is the current ratio which is defined as current assets divided by its current liabilities. High current ratios mean that current assets are more than sufficient to pay off current liabilities.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.

Red Hat

Retained Earnings

 = 

Beginning RE + Income

-

Dividends

 = 
1.07 B
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.

Red Retained Earnings Comparison

Red Hat is currently under evaluation in retained earnings category among related companies.

Red Hat Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Red Hat, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Red Hat will eventually generate negative long term returns. The profitability progress is the general direction of Red Hat's change in net profit over the period of time. It can combine multiple indicators of Red Hat, 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.
Red Hat, Inc. provides open source software solutions to develop and offer operating system, virtualization, management, middleware, cloud, and storage technologies to various enterprises worldwide. Red Hat, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina. Red Hat operates under Software - Application classification in USA and is traded on New York Stock Exchange. It employs 13360 people.

Red Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Red Hat. 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 Red Hat 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 Red Hat's important profitability drivers and their relationship over time.

Use Red Hat 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 Red Hat 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 Red Hat will appreciate offsetting losses from the drop in the long position's value.

Red Hat Pair Trading

Red Hat Pair Trading Analysis

The ability to find closely correlated positions to Pitney Bowes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pitney Bowes 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 Pitney Bowes - 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 Pitney Bowes to buy it.
The correlation of Pitney Bowes 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 Pitney Bowes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pitney Bowes 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 Pitney Bowes 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Red Hat position

In addition to having Red Hat 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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Shipbuilding Railroad Equipment
Shipbuilding Railroad Equipment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipbuilding Railroad Equipment theme has 15 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 Shipbuilding Railroad Equipment Theme or any other thematic opportunities.
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.
Note that the Red Hat information on this page should be used as a complementary analysis to other Red Hat's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Consideration for investing in Red Stock

If you are still planning to invest in Red Hat check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Red Hat's history and understand the potential risks before investing.
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