BHP Free Cash Flow vs Invested Capital Analysis

BHP Stock

USD 57.99 0.42 0.72%

BHP Group financial indicator trend analysis is way more than just evaluating BHP Group Limited prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether BHP Group Limited is a good investment. Please check the relationship between BHP Group Free Cash Flow and its Invested Capital accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in BHP Group Limited. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.

Free Cash Flow vs Invested Capital

Free Cash Flow vs Invested Capital Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of BHP Group Limited Free Cash Flow account and Invested Capital. At this time, the significance of the direction appears to have weak contrarian relationship.

The correlation between BHP Group's Free Cash Flow and Invested Capital is -0.14. Overlapping area represents the amount of variation of Free Cash Flow that can explain the historical movement of Invested Capital in the same time period over historical financial statements of BHP Group Limited, assuming nothing else is changed. The correlation between historical values of BHP Group's Free Cash Flow and Invested Capital is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Free Cash Flow of BHP Group Limited are associated (or correlated) with its Invested Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Invested Capital has no effect on the direction of Free Cash Flow i.e., BHP Group's Free Cash Flow and Invested Capital go up and down completely randomly.

Correlation Coefficient

-0.14

Relationship Direction	Negative
Relationship Strength	Insignificant

View All Relationships

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to BHP Group Limited. There are two different methods for calculating BHP Group Limited invested capital: operating approach and financing approach. Understanding BHP Group invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed.

Most indicators from BHP Group's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into BHP Group Limited 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 Trending Equities to better understand how to build diversified portfolios, which includes a position in BHP Group Limited. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.

As of 04/19/2024, Discontinued Operations is likely to grow to about 12.9 B, while Selling General Administrative is likely to drop slightly above 3.6 B.

	2021	2022	2023	2024 (projected)
Gross Profit	39.7B	27.7B	31.8B	16.5B
Total Revenue	65.1B	53.8B	61.9B	35.3B

Gross Profit Total Revenue

BHP Group fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Stockholder Equity	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Other Current Assets	Accounts Payable	Other Liab	Other Assets	Long Term Debt
Total Assets		0.92	0.47	0.53	0.98	0.99	0.69	0.98	0.16	0.98	-0.65	0.16	0.71	0.91	0.64	0.8	-0.64	0.98	0.57	0.16	0.7	0.09	0.86	0.46	0.72	0.82
Short Long Term Debt Total	0.92		0.15	0.32	0.89	0.92	0.84	0.9	0.03	0.92	-0.75	0.03	0.45	0.81	0.64	0.56	-0.75	0.89	0.35	0.14	0.77	0.09	0.69	0.3	0.85	0.92
Other Current Liab	0.47	0.15		0.68	0.48	0.43	-0.01	0.46	0.19	0.4	-0.15	0.2	0.8	0.46	0.06	0.79	0.01	0.51	0.56	0.13	0.15	0.06	0.59	0.32	0.06	0.07
Total Current Liabilities	0.53	0.32	0.68		0.5	0.53	0.23	0.47	0.31	0.51	-0.02	0.31	0.78	0.56	0.35	0.8	-0.07	0.59	0.43	0.75	0.24	-0.05	0.68	0.49	0.03	0.21
Total Stockholder Equity	0.98	0.89	0.48	0.5		0.98	0.72	1.0	0.06	0.97	-0.7	0.06	0.73	0.84	0.54	0.78	-0.64	0.93	0.5	0.08	0.78	0.1	0.85	0.32	0.75	0.84
Property Plant And Equipment Net	0.99	0.92	0.43	0.53	0.98		0.76	0.97	0.03	1.0	-0.64	0.03	0.74	0.86	0.63	0.81	-0.62	0.96	0.44	0.2	0.75	-0.03	0.87	0.41	0.72	0.81
Net Debt	0.69	0.84	-0.01	0.23	0.72	0.76		0.75	-0.46	0.77	-0.79	-0.46	0.41	0.43	0.33	0.41	-0.66	0.62	-0.13	0.16	0.93	-0.05	0.53	-0.15	0.83	0.83
Retained Earnings	0.98	0.9	0.46	0.47	1.0	0.97	0.75		0.02	0.97	-0.73	0.02	0.71	0.82	0.51	0.76	-0.67	0.92	0.47	0.07	0.81	0.12	0.84	0.28	0.78	0.85
Cash	0.16	0.03	0.19	0.31	0.06	0.03	-0.46	0.02		0.03	0.28	1.0	-0.03	0.46	0.39	0.11	0.01	0.23	0.73	0.19	-0.44	0.2	0.11	0.71	-0.2	-0.01
Non Current Assets Total	0.98	0.92	0.4	0.51	0.97	1.0	0.77	0.97	0.03		-0.63	0.03	0.72	0.85	0.66	0.79	-0.6	0.96	0.41	0.2	0.75	-0.06	0.86	0.4	0.73	0.82
Non Currrent Assets Other	-0.65	-0.75	-0.15	-0.02	-0.7	-0.64	-0.79	-0.73	0.28	-0.63		0.28	-0.27	-0.4	-0.04	-0.28	0.8	-0.55	-0.1	0.23	-0.85	-0.25	-0.34	0.24	-0.89	-0.85
Cash And Short Term Investments	0.16	0.03	0.2	0.31	0.06	0.03	-0.46	0.02	1.0	0.03	0.28		-0.03	0.46	0.39	0.11	0.01	0.23	0.73	0.19	-0.44	0.2	0.12	0.72	-0.2	-0.01
Net Receivables	0.71	0.45	0.8	0.78	0.73	0.74	0.41	0.71	-0.03	0.72	-0.27	-0.03		0.58	0.31	0.92	-0.15	0.72	0.37	0.33	0.49	-0.18	0.83	0.35	0.26	0.36
Common Stock Shares Outstanding	0.91	0.81	0.46	0.56	0.84	0.86	0.43	0.82	0.46	0.85	-0.4	0.46	0.58		0.75	0.75	-0.57	0.95	0.75	0.23	0.37	0.13	0.83	0.73	0.48	0.65
Non Current Liabilities Total	0.64	0.64	0.06	0.35	0.54	0.63	0.33	0.51	0.39	0.66	-0.04	0.39	0.31	0.75		0.47	-0.24	0.72	0.46	0.32	0.14	-0.11	0.63	0.74	0.35	0.44
Inventory	0.8	0.56	0.79	0.8	0.78	0.81	0.41	0.76	0.11	0.79	-0.28	0.11	0.92	0.75	0.47		-0.21	0.83	0.54	0.41	0.45	-0.07	0.87	0.51	0.29	0.37
Other Stockholder Equity	-0.64	-0.75	0.01	-0.07	-0.64	-0.62	-0.66	-0.67	0.01	-0.6	0.8	0.01	-0.15	-0.57	-0.24	-0.21		-0.58	-0.27	0.13	-0.61	-0.37	-0.45	-0.09	-0.7	-0.82
Total Liab	0.98	0.89	0.51	0.59	0.93	0.96	0.62	0.92	0.23	0.96	-0.55	0.23	0.72	0.95	0.72	0.83	-0.58		0.61	0.26	0.58	0.05	0.87	0.58	0.64	0.74
Total Current Assets	0.57	0.35	0.56	0.43	0.5	0.44	-0.13	0.47	0.73	0.41	-0.1	0.73	0.37	0.75	0.46	0.54	-0.27	0.61		0.08	-0.08	0.52	0.53	0.72	0.1	0.22
Short Term Debt	0.16	0.14	0.13	0.75	0.08	0.2	0.16	0.07	0.19	0.2	0.23	0.19	0.33	0.23	0.32	0.41	0.13	0.26	0.08		0.01	-0.16	0.24	0.41	-0.21	-0.05
Intangible Assets	0.7	0.77	0.15	0.24	0.78	0.75	0.93	0.81	-0.44	0.75	-0.85	-0.44	0.49	0.37	0.14	0.45	-0.61	0.58	-0.08	0.01		0.01	0.52	-0.28	0.84	0.84
Other Current Assets	0.09	0.09	0.06	-0.05	0.1	-0.03	-0.05	0.12	0.2	-0.06	-0.25	0.2	-0.18	0.13	-0.11	-0.07	-0.37	0.05	0.52	-0.16	0.01		0.03	-0.05	0.12	0.12
Accounts Payable	0.86	0.69	0.59	0.68	0.85	0.87	0.53	0.84	0.11	0.86	-0.34	0.12	0.83	0.83	0.63	0.87	-0.45	0.87	0.53	0.24	0.52	0.03		0.5	0.43	0.58
Other Liab	0.46	0.3	0.32	0.49	0.32	0.41	-0.15	0.28	0.71	0.4	0.24	0.72	0.35	0.73	0.74	0.51	-0.09	0.58	0.72	0.41	-0.28	-0.05	0.5		-0.14	0.06
Other Assets	0.72	0.85	0.06	0.03	0.75	0.72	0.83	0.78	-0.2	0.73	-0.89	-0.2	0.26	0.48	0.35	0.29	-0.7	0.64	0.1	-0.21	0.84	0.12	0.43	-0.14		0.92
Long Term Debt	0.82	0.92	0.07	0.21	0.84	0.81	0.83	0.85	-0.01	0.82	-0.85	-0.01	0.36	0.65	0.44	0.37	-0.82	0.74	0.22	-0.05	0.84	0.12	0.58	0.06	0.92

Click cells to compare fundamentals

BHP Group Account Relationship Matchups

BHP Group fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	104.8B	108.9B	95.2B	101.3B	116.5B	68.1B
Short Long Term Debt Total	27.0B	21.0B	16.4B	22.3B	25.7B	16.2B
Other Current Liab	3.9B	6.6B	8.9B	5.5B	6.4B	3.8B
Total Current Liabilities	14.8B	16.4B	16.9B	19.0B	21.9B	23.0B
Total Stockholder Equity	47.9B	51.3B	45.0B	43.1B	49.5B	31.9B
Property Plant And Equipment Net	72.4B	73.8B	61.3B	71.8B	82.6B	46.2B
Net Debt	13.6B	5.7B	(808M)	9.9B	11.4B	10.0B
Retained Earnings	43.5B	46.8B	40.3B	39.8B	45.8B	28.1B
Cash	13.4B	15.2B	17.2B	12.4B	14.3B	15.0B
Non Current Assets Total	83.3B	82.2B	64.9B	77.9B	89.6B	52.4B
Non Currrent Assets Other	1.5B	1.7B	(56M)	2.1B	1.9B	2.0B
Cash And Short Term Investments	13.5B	15.5B	17.5B	12.5B	14.3B	15.0B
Net Receivables	3.7B	6.3B	5.7B	5.1B	5.9B	4.1B
Liabilities And Stockholders Equity	104.8B	108.9B	95.2B	101.3B	116.5B	68.1B
Non Current Liabilities Total	37.7B	36.9B	13.2B	33.7B	38.8B	19.6B
Inventory	4.1B	4.4B	4.9B	5.2B	6.0B	3.3B
Other Stockholder Equity	(5M)	(33M)	(12M)	(41M)	(36.9M)	(35.1M)
Total Liab	52.5B	53.3B	46.4B	52.8B	60.7B	33.6B
Total Current Assets	21.5B	26.7B	28.7B	23.4B	26.9B	14.1B
Short Term Debt	5.0B	2.6B	2.6B	7.2B	8.2B	8.7B
Intangible Assets	377M	240M	172M	221M	254.2M	452.3M
Other Current Assets	130M	129M	175M	131M	150.7M	143.1M
Accounts Payable	5.8B	7.0B	5.4B	6.3B	7.2B	4.9B
Other Liab	14.3B	17.4B	14.2B	16.9B	19.5B	10.2B
Other Assets	5.4B	3.6B	1.6B	2.0B	2.3B	2.2B
Long Term Debt	19.4B	18.4B	13.8B	12.7B	14.6B	17.6B
Short Term Investments	84M	230M	303M	29M	26.1M	24.8M
Accumulated Other Comprehensive Income	2.3B	2.4B	12M	(1.4B)	(1.6B)	(1.7B)
Property Plant Equipment	72.4B	73.8B	61.3B	71.8B	82.6B	63.3B
Property Plant And Equipment Gross	72.4B	73.8B	121.1B	135.3B	155.6B	163.4B
Current Deferred Revenue	97M	105M	34M	47M	42.3M	40.2M
Long Term Investments	5.1B	3.4B	2.2B	2.4B	2.1B	2.9B
Short Long Term Debt	5.0B	2.6B	2.6B	1.3B	1.2B	1.1B
Net Tangible Assets	46.6B	47.3B	49.8B	43.6B	39.2B	42.6B

Pair Trading with BHP Group

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

Moving together with BHP Stock

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0.79	VZLA	Vizsla Resources Corp Financial Report 18th of July 2024	Pair Corr

Moving against BHP Stock

0.56	IPX	IperionX Limited American	Pair Corr
0.54	ELBM	Electra Battery Materials Financial Report 8th of May 2024	Pair Corr
0.47	NMG	Nouveau Monde Graphite Financial Report 8th of May 2024	Pair Corr

The ability to find closely correlated positions to BHP Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BHP Group 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 BHP Group - 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 BHP Group Limited to buy it.

The correlation of BHP Group 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 BHP Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BHP Group Limited 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 BHP Group 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 Correlation Correlation Matching

When determining whether BHP Group Limited is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if BHP Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Bhp Group Limited Stock. Highlighted below are key reports to facilitate an investment decision about Bhp Group Limited Stock:

How To Invest In BHP

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Is BHP Stock a good investment?

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What is BHP Group's Net Worth?

Details

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Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in BHP Group Limited. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.

Note that the BHP Group Limited information on this page should be used as a complementary analysis to other BHP Group'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Complementary Tools for BHP Stock analysis

When running BHP Group's price analysis, check to measure BHP Group'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 BHP Group is operating at the current time. Most of BHP Group's value examination focuses on studying past and present price action to predict the probability of BHP Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BHP Group's price. Additionally, you may evaluate how the addition of BHP Group to your portfolios can decrease your overall portfolio volatility.

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Is BHP Group'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 BHP Group. If investors know BHP 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 BHP Group 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

(0.86)

Dividend Share

1.52

Earnings Share

2.92

Revenue Per Share

21.974

Quarterly Revenue Growth

0.057

The market value of BHP Group Limited is measured differently than its book value, which is the value of BHP that is recorded on the company's balance sheet. Investors also form their own opinion of BHP Group's value that differs from its market value or its book value, called intrinsic value, which is BHP Group'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 BHP Group's market value can be influenced by many factors that don't directly affect BHP Group'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 BHP Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if BHP Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BHP Group'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.

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BHP Free Cash Flow vs Invested Capital Analysis

Free Cash Flow vs Invested Capital

Free Cash Flow vs Invested Capital Correlation Analysis

Correlation Coefficient

Free Cash Flow

Invested Capital

BHP Group fundamental ratios Correlations

BHP Group Account Relationship Matchups

High Positive Relationship

High Negative Relationship

BHP Group fundamental ratios Accounts

Pair Trading with BHP Group

Moving together with BHP Stock

Moving against BHP Stock

Complementary Tools for BHP Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Retained Earnings	+ 1.0	Total Stockholder Equity
Non Current Assets Total	+ 1.0	Property Plant And Equipment Net
Cash And Short Term Investments	+ 1.0	Cash
Property Plant And Equipment Net	+ 0.99	Total Assets
Total Stockholder Equity	+ 0.98	Total Assets
Retained Earnings	+ 0.98	Total Assets

Other Assets	- 0.89	Non Currrent Assets Other
Long Term Debt	- 0.85	Non Currrent Assets Other
Intangible Assets	- 0.85	Non Currrent Assets Other
Long Term Debt	- 0.82	Other Stockholder Equity
Non Currrent Assets Other	- 0.79	Net Debt
Other Stockholder Equity	- 0.75	Short Long Term Debt Total