Alcoa Invested Capital vs Market Capitalization Analysis

    Invested Capital vs Market Capitalization

    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 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.

    Market Capitalization

    Market capitalization (or market cap) is the total value of the shares outstanding of Alcoa Corporation. It is equal to Alcoa current share price times the number of Alcoa outstanding shares. Represents the product of Total Shares (Basic) , Adjusted Share Price and Entity Share Factor.

    Accounts Relationship

    Invested Capital vs Market Capitalization

    Significance: Strong Contrarian Relationship

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

    Correlation Coefficient

    -0.63
    Relationship DirectionNegative 
    Relationship StrengthWeak