Bridgestone EBITDA vs. Net Income
| BRDCF Stock | USD 42.76 0.14 0.33% |
For Bridgestone profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bridgestone to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bridgestone utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bridgestone's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bridgestone over time as well as its relative position and ranking within its peers.
Bridgestone |
Bridgestone Net Income vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Bridgestone's current stock value. Our valuation model uses many indicators to compare Bridgestone value to that of its competitors to determine the firm's financial worth. Bridgestone is number one stock in ebitda category among related companies. It is number one stock in net income category among related companies making up about 0.61 of Net Income per EBITDA. The ratio of EBITDA to Net Income for Bridgestone is roughly 1.64 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Bridgestone by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Bridgestone's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Bridgestone's earnings, one of the primary drivers of an investment's value.Bridgestone Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Bridgestone |
| = | 644.26 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Bridgestone |
| = | 394.04 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Bridgestone Net Income Comparison
Bridgestone is currently under evaluation in net income category among related companies.
Bridgestone Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Bridgestone, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bridgestone will eventually generate negative long term returns. The profitability progress is the general direction of Bridgestone's change in net profit over the period of time. It can combine multiple indicators of Bridgestone, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products. The company was founded in 1931 and is headquartered in Tokyo, Japan. Bridgestone Corp operates under Auto Parts classification in the United States and is traded on OTC Exchange. It employs 135636 people.
Bridgestone Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Bridgestone. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Bridgestone position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Bridgestone's important profitability drivers and their relationship over time.
Use Bridgestone in pair-trading
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 Bridgestone 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 Bridgestone will appreciate offsetting losses from the drop in the long position's value.Bridgestone Pair Trading
Bridgestone Pair Trading Analysis
The ability to find closely correlated positions to Bridgestone could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bridgestone 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 Bridgestone - 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 Bridgestone to buy it.
The correlation of Bridgestone 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 Bridgestone moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bridgestone 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 Bridgestone 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.Use Investing Themes to Complement your Bridgestone position
In addition to having Bridgestone in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Restaurants Theme or any other thematic opportunities.
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Check out Trending Equities. Note that the Bridgestone information on this page should be used as a complementary analysis to other Bridgestone'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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Complementary Tools for Bridgestone Pink Sheet analysis
When running Bridgestone's price analysis, check to measure Bridgestone'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 Bridgestone is operating at the current time. Most of Bridgestone's value examination focuses on studying past and present price action to predict the probability of Bridgestone's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bridgestone's price. Additionally, you may evaluate how the addition of Bridgestone to your portfolios can decrease your overall portfolio volatility.
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To fully project Bridgestone's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bridgestone at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Bridgestone's income statement, its balance sheet, and the statement of cash flows.