Facebook Earnings before Tax vs Invested Capital Analysis

FB -- USA Stock  

USD 197.49  4.01  1.99%

Facebook financial indicator trend analysis is much more than just examining Facebook latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Facebook is a good investment. Please check the relationship between Facebook Earnings before Tax and its Invested Capital accounts. Additionally see Investing Opportunities.

Earnings before Tax vs Invested Capital

Accounts Relationship

Earnings before Tax vs Invested Capital

Significance: Almost Identical Trend

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Facebook Earnings before Tax account and Invested Capital

Correlation Coefficient

0.98
Relationship DirectionPositive 
Relationship StrengthVery Strong

Earnings before Tax

Earnings Before Tax is calculated by adding Income Tax Expense back to Net Income.

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to Facebook. There are two different methods for calculating Facebook 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, 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.

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Additionally see Investing Opportunities. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.