Alcoa Invested Capital vs Enterprise Value Analysis

AA -- USA Stock  

USD 40.32  1.24  2.98%

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 Invested Capital and its Enterprise Value accounts. Check also Trending Equities.

Invested Capital vs Enterprise Value

Accounts Relationship

Invested Capital vs Enterprise Value

Significance: Pay attention

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Alcoa Invested Capital account and Enterprise Value

Correlation Coefficient

-0.81
Relationship DirectionNegative 
Relationship StrengthSignificant

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

Enterprise Value

Enterprise Value (or EV) is usually referred to as Alcoa theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Alcoa debt, but would also pocket its cash. Enterprise Value is more accurate representation of Alcoa value then its market capitalization because it takes into account all of Alcoa Corporation existing debt. Enterprise value is a measure of the value of a business as a whole

Did you try this?

Run Idea Breakdown Now
   

Idea Breakdown

Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
All  Next Launch Idea Breakdown

Build Efficient 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 Transaction History module to view history of all your transactions and understand their impact on performance.
vendors/bower_components/jquery.easy-pie-chart/dist/jquery.easypiechart.min.js">