Alcoa Earnings before Tax vs Invested Capital Analysis

    AA -- USA Stock  

    USD 44.82  0.45  0.99%

    Alcoa financial indicator trend analysis is way more than just evaluating Alcoa prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Alcoa is a good investment. Please check the relationship between Alcoa Earnings before Tax and its Invested Capital accounts. Check also Trending Equities.

    Earnings before Tax vs Invested Capital

    Accounts Relationship

    Earnings before Tax vs Invested Capital

    Significance: Weak Contrarian Relationship

    Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Alcoa Earnings before Tax account and Invested Capital

    Correlation Coefficient

    -0.02
    Relationship DirectionNegative 
    Relationship StrengthInsignificant

    Earnings before Tax

    Earnings Before Tax is calculated by adding Income Tax Expense back to Net Income.

    Invested Capital

    Invested capital represents the total cash investment that shareholders and debt holders have contributed to Alcoa Corporation. There are two different methods for calculating Alcoa invested capital: operating approach and financing approach. Understanding ##company1# invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed. Invested capital is an input into the calculation of Return on Invested Capital, and is calculated as: Total Debt plus Total Assets minus Goodwill and Intangible Assets minus Cash and Equivalents minus Current Liabilities. Please note this calculation method is subject to change.

    Did you try this?

    Run Premium Stories Now
       

    Premium Stories

    Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
    All  Next Launch Premium Stories

    Generate Optimal Portfolios

    Align your risk and return expectations
    Fix your portfolio
    By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
    Check also Trending Equities. Please also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.