Alcoa Earnings before Tax vs Invested Capital Analysis

AA -- USA Stock  

Fiscal Quarter End: December 31, 2019  

Alcoa financial indicator trend analysis is way more than just evaluating Alcoa prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Alcoa is a good investment. Please check the relationship between Alcoa Earnings before Tax and its Invested Capital accounts. Check also Trending Equities.

Earnings before Tax vs Invested Capital

Accounts Relationship

Earnings before Tax vs Invested Capital

Significance: Strong Contrarian Relationship

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

Correlation Coefficient

-0.61
Relationship DirectionNegative 
Relationship StrengthWeak

Earnings before Tax

Earnings Before Tax is calculated by adding [TaxExp] back to [NetInc].

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to Alcoa Corporation. There are two different methods for calculating Alcoa 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: [Debt] plus [Assets] minus [Intangibles] minus [CashnEq] minus [LiabilitiesC]. Please note this calculation method is subject to change.
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