This firm has accumulated 2.55
B in total debt with debt to equity ratio (D/E) of 0.09, which may suggest the company is not taking enough advantage from borrowing. The company has a current ratio of 1.28, suggesting that it may not be capable to disburse its financial obligations in time and when they become due. LOreal ADR next dividend is scheduled to be issued on the 23rd of April 2021. The entity had
10:1 split on the 3rd of July 2000.
LOreal Co financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of LOreal Co, including all of LOreal Co's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of LOreal Co assets, the company is considered highly leveraged. Understanding the
composition and structure of overall LOreal Co debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
How important is LOreal Co's Liquidity
LOreal Co
financial leverage refers to using borrowed capital as a funding source to finance LOreal Co ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LOreal Co financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to LOreal Co's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of LOreal Co's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between LOreal Co's total debt and its cash.
Is LOreal Co valued reasonably by the market?
LOreal ADR reported the revenue of 27.99
B. Net Income was 3.56
B with profit before overhead, payroll, taxes, and interest of 20.46
B.
Momentum Analysis of LOreal ADR suggests possible reversal in June
Standard deviation is down to 1.21. It may suggest a possible volatility slide.
As of the 14th of May 2021, LOreal ADR secures the Mean Deviation of 1.02,
downside deviation of 1.22, and Risk Adjusted Performance of 0.141. In connection with
fundamental indicators, the
technical analysis model lets you check existing technical drivers of LOreal ADR, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down nineteen
technical drivers for LOreal ADR, which can be compared to its peers in the industry. Please verify
LOreal ADR variance and
potential upside to decide if LOreal ADR is priced some-what accurately, providing market reflects its recent price of 85.91 per share. Given that LOreal ADR has
jensen alpha of 0.1214, we recommend you to check LOreal ADR's last-minute market performance to make sure the company can sustain itself at a future point.
Our Conclusion on LOreal ADR
While many other companies within the household & personal products industry are still a little expensive, even after the recent corrections, LOreal ADR may offer a potential longer-term growth to investors. The inconsistency in the assessment between current LOreal valuation and our trade advice on LOreal ADR is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to LOreal ADR.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of LOreal Co ADR. Please refer to our
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