Deere Interest Expense vs Operating Income Analysis

DE Stock  USD 409.14  12.09  3.04%   
Deere financial indicator trend analysis is much more than just examining Deere Company latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Deere Company is a good investment. Please check the relationship between Deere Interest Expense and its Operating Income accounts. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Deere Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.

Interest Expense vs Operating Income

Interest Expense vs Operating Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Deere Company Interest Expense account and Operating Income. At this time, the significance of the direction appears to have almost identical trend.
The correlation between Deere's Interest Expense and Operating Income is 0.93. Overlapping area represents the amount of variation of Interest Expense that can explain the historical movement of Operating Income in the same time period over historical financial statements of Deere Company, assuming nothing else is changed. The correlation between historical values of Deere's Interest Expense and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Interest Expense of Deere Company are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Interest Expense i.e., Deere's Interest Expense and Operating Income go up and down completely randomly.

Correlation Coefficient

0.93
Relationship DirectionPositive 
Relationship StrengthVery Strong

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Operating Income

Operating Income is the amount of profit realized from Deere Company operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Deere Company is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.
Most indicators from Deere's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Deere Company current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Deere Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
At present, Deere's Enterprise Value Multiple is projected to slightly decrease based on the last few years of reporting.
 2021 2022 2023 2024 (projected)
Interest Expense1.1B2.5B2.8B3.0B
Depreciation And Amortization1.9B2.0B2.3B2.4B

Deere fundamental ratios Correlations

1.00.720.990.950.930.990.980.80.970.420.820.99-0.720.950.960.01-0.950.990.931.00.98-0.050.690.740.23
1.00.710.990.930.941.00.980.80.970.380.820.99-0.740.950.940.01-0.951.00.940.990.98-0.050.680.730.2
0.720.710.80.820.470.730.810.440.620.180.450.77-0.460.490.75-0.48-0.690.670.470.750.79-0.70.430.340.17
0.990.990.80.950.880.990.980.750.940.350.781.0-0.690.90.96-0.1-0.930.980.880.991.0-0.170.650.670.25
0.950.930.820.950.80.930.970.720.910.520.740.94-0.670.80.95-0.03-0.90.910.80.950.93-0.210.730.680.2
0.930.940.470.880.80.930.880.770.970.460.770.89-0.810.970.840.27-0.910.941.00.90.880.190.740.810.01
0.991.00.730.990.930.930.980.730.970.380.760.99-0.720.940.95-0.03-0.950.990.930.990.98-0.080.690.720.22
0.980.980.810.980.970.880.980.760.960.420.770.98-0.750.880.94-0.05-0.950.960.880.980.98-0.20.710.710.12
0.80.80.440.750.720.770.730.760.780.320.990.75-0.640.810.660.27-0.750.80.770.790.750.140.450.640.07
0.970.970.620.940.910.970.970.960.780.520.780.95-0.790.950.930.18-0.950.970.970.950.930.060.80.80.07
0.420.380.180.350.520.460.380.420.320.520.30.36-0.530.40.520.4-0.490.380.460.380.280.190.630.67-0.12
0.820.820.450.780.740.770.760.770.990.780.30.79-0.590.840.70.2-0.750.830.770.830.780.160.420.630.22
0.990.990.771.00.940.890.990.980.750.950.360.79-0.690.920.95-0.09-0.940.990.891.00.99-0.120.640.690.27
-0.72-0.74-0.46-0.69-0.67-0.81-0.72-0.75-0.64-0.79-0.53-0.59-0.69-0.72-0.62-0.240.85-0.72-0.81-0.69-0.70.08-0.65-0.90.26
0.950.950.490.90.80.970.940.880.810.950.40.840.92-0.720.860.15-0.90.970.970.930.890.20.630.770.2
0.960.940.750.960.950.840.950.940.660.930.520.70.95-0.620.86-0.03-0.890.940.840.950.93-0.090.740.70.31
0.010.01-0.48-0.1-0.030.27-0.03-0.050.270.180.40.2-0.09-0.240.15-0.03-0.030.020.27-0.05-0.110.690.470.34-0.4
-0.95-0.95-0.69-0.93-0.9-0.91-0.95-0.95-0.75-0.95-0.49-0.75-0.940.85-0.9-0.89-0.03-0.94-0.91-0.93-0.930.11-0.69-0.82-0.06
0.991.00.670.980.910.940.990.960.80.970.380.830.99-0.720.970.940.02-0.940.940.990.970.010.660.740.24
0.930.940.470.880.81.00.930.880.770.970.460.770.89-0.810.970.840.27-0.910.940.90.880.190.740.810.01
1.00.990.750.990.950.90.990.980.790.950.380.831.0-0.690.930.95-0.05-0.930.990.90.98-0.080.650.710.28
0.980.980.791.00.930.880.980.980.750.930.280.780.99-0.70.890.93-0.11-0.930.970.880.98-0.180.620.660.22
-0.05-0.05-0.7-0.17-0.210.19-0.08-0.20.140.060.190.16-0.120.080.2-0.090.690.110.010.19-0.08-0.180.080.160.11
0.690.680.430.650.730.740.690.710.450.80.630.420.64-0.650.630.740.47-0.690.660.740.650.620.080.68-0.17
0.740.730.340.670.680.810.720.710.640.80.670.630.69-0.90.770.70.34-0.820.740.810.710.660.160.680.04
0.230.20.170.250.20.010.220.120.070.07-0.120.220.270.260.20.31-0.4-0.060.240.010.280.220.11-0.170.04
Click cells to compare fundamentals

Deere Account Relationship Matchups

Deere fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets75.1B84.1B90.0B104.1B119.7B125.7B
Short Long Term Debt Total46.0B48.4B51.9B63.4B72.9B76.6B
Other Current Liab(1.5B)(1.7B)10.0B11.5B13.3B13.9B
Total Current Liabilities23.5B27.9B33.1B41.1B47.2B49.6B
Total Stockholder Equity12.9B18.4B20.3B21.8B25.1B26.3B
Property Plant And Equipment Net13.1B12.8B12.7B13.8B15.9B16.7B
Net Debt38.9B40.4B47.1B56.0B64.3B67.6B
Retained Earnings31.6B36.4B42.2B50.9B58.6B61.5B
Cash7.1B8.0B4.8B7.5B8.6B9.0B
Non Current Assets Total22.5B24.2B24.6B26.2B30.1B31.6B
Non Currrent Assets Other3.3B5.6B6.0B2.5B2.9B2.0B
Cash And Short Term Investments7.7B8.7B5.5B8.4B9.7B10.1B
Net Receivables39.9B44.4B51.5B61.4B70.6B74.1B
Liabilities And Stockholders Equity75.1B84.1B90.0B104.1B119.7B125.7B
Non Current Liabilities Total38.7B37.8B36.5B41.1B47.3B49.7B
Inventory5.0B6.8B8.5B8.2B9.4B9.9B
Other Current Assets37.9B42.3B1.1B162M186.3M177.0M
Other Stockholder Equity(18.1B)(20.5B)(24.1B)(31.3B)(28.2B)(26.8B)
Total Liab62.1B65.7B69.7B82.2B94.5B99.3B
Property Plant And Equipment Gross13.1B12.8B12.7B13.8B15.9B16.7B
Total Current Assets52.6B60.0B65.5B77.9B89.6B94.1B
Accumulated Other Comprehensive Income(5.5B)(2.5B)(3.1B)(3.1B)(2.8B)(2.9B)
Short Term Debt13.3B15.5B18.3B24.9B28.7B30.1B
Accounts Payable10.1B12.2B3.9B3.5B4.0B5.5B
Intangible Assets1.3B1.3B1.2B1.1B1.3B1.4B
Common Stock Total Equity4.6B4.9B5.1B5.2B5.9B3.6B
Short Term Investments641M728M734M946M1.1B841.9M
Common Stock4.9B5.1B5.2B5.3B6.1B3.7B
Other Liab6.0B5.1B3.0B2.7B3.1B5.5B
Other Assets3.4B31.2B7.1B6.1B7.1B6.2B
Long Term Debt37.4B32.9B33.6B38.5B44.2B22.3B
Treasury Stock(16.3B)(17.5B)(18.1B)(20.5B)(18.5B)(17.6B)
Property Plant Equipment6.1B12.8B6.0B7.2B8.2B5.4B
Current Deferred Revenue1.6B1.8B956M1.1B1.3B851.5M
Good Will3.1B3.3B3.7B3.9B4.5B4.7B
Net Tangible Assets8.5B13.9B15.4B16.3B18.7B19.7B
Noncontrolling Interest In Consolidated Entity3.4M4M7M3M2.7M2.6M
Retained Earnings Total Equity29.9B31.6B36.4B42.2B48.6B26.4B
Long Term Debt Total34.6B37.4B37.5B33.6B38.6B29.0B

Pair Trading with Deere

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 Deere 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 Deere will appreciate offsetting losses from the drop in the long position's value.

Moving together with Deere Stock

  0.7MNTX Manitex International Financial Report 2nd of May 2024 PairCorr

Moving against Deere Stock

  0.58REVG Rev Group Financial Report 13th of June 2024 PairCorr
  0.45GENC Gencor IndustriesPairCorr
The ability to find closely correlated positions to Deere could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Deere 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 Deere - 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 Deere Company to buy it.
The correlation of Deere 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 Deere moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Deere Company 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 Deere 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
When determining whether Deere Company is a strong investment it is important to analyze Deere's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Deere's future performance. For an informed investment choice regarding Deere Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Deere Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
Note that the Deere Company information on this page should be used as a complementary analysis to other Deere'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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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When running Deere's price analysis, check to measure Deere's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Deere is operating at the current time. Most of Deere's value examination focuses on studying past and present price action to predict the probability of Deere's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Deere's price. Additionally, you may evaluate how the addition of Deere to your portfolios can decrease your overall portfolio volatility.
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Is Deere's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Deere. If investors know Deere will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Deere listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.05)
Dividend Share
5.32
Earnings Share
34.31
Revenue Per Share
211.12
Quarterly Revenue Growth
(0.04)
The market value of Deere Company is measured differently than its book value, which is the value of Deere that is recorded on the company's balance sheet. Investors also form their own opinion of Deere's value that differs from its market value or its book value, called intrinsic value, which is Deere's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Deere's market value can be influenced by many factors that don't directly affect Deere's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Deere's value and its price as these two are different measures arrived at by different means. Investors typically determine if Deere is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Deere'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.