Rio Debt To Equity from 2010 to 2024

RIO Stock  USD 58.64  0.09  0.15%   
Rio Tinto Debt To Equity yearly trend continues to be very stable with very little volatility. Debt To Equity is likely to drop to 0.23. Debt To Equity is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity, indicating the proportion of equity and debt the company is using to finance its assets. View All Fundamentals
 
Debt To Equity  
First Reported
2010-12-31
Previous Quarter
0.23817462
Current Value
0.23
Quarterly Volatility
0.1566079
 
Credit Downgrade
 
Yuan Drop
 
Covid
Check Rio Tinto financial statements over time to gain insight into future company performance. You can evaluate financial statements to find patterns among Rio Tinto's main balance sheet or income statement drivers, such as Depreciation And Amortization of 6.6 B, Interest Expense of 2.1 B or Total Revenue of 28.6 B, as well as many indicators such as Price To Sales Ratio of 2.63, Dividend Yield of 0.0368 or PTB Ratio of 3.14. Rio financial statements analysis is a perfect complement when working with Rio Tinto Valuation or Volatility modules.
  
Check out the analysis of Rio Tinto Correlation against competitors.

Latest Rio Tinto's Debt To Equity Growth Pattern

Below is the plot of the Debt To Equity of Rio Tinto ADR over the last few years. It is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity, indicating the proportion of equity and debt the company is using to finance its assets. Rio Tinto's Debt To Equity historical data analysis aims to capture in quantitative terms the overall pattern of either growth or decline in Rio Tinto's overall financial position and show how it may be relating to other accounts over time.
ViewLast Reported 0.23 %10 Years Trend
Slightly volatile
   Debt To Equity   
       Timeline  

Rio Debt To Equity Regression Statistics

Arithmetic Mean0.40
Geometric Mean0.37
Coefficient Of Variation39.44
Mean Deviation0.14
Median0.34
Standard Deviation0.16
Sample Variance0.02
Range0.3986
R-Value(0.87)
Mean Square Error0.01
R-Squared0.76
Significance0.000021
Slope(0.03)
Total Sum of Squares0.34

Rio Debt To Equity History

2024 0.23
2022 0.22
2021 0.24
2020 0.27
2019 0.32
2018 0.29
2017 0.34

About Rio Tinto Financial Statements

Rio Tinto investors utilize fundamental indicators, such as Debt To Equity, to predict how Rio Stock might perform in the future. Analyzing these trends over time helps investors make informed market timing decisions. For further insights, please visit our fundamental analysis page.
Last ReportedProjected for Next Year
Debt To Equity 0.24  0.23 

Pair Trading with Rio Tinto

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 Rio Tinto 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 Rio Tinto will appreciate offsetting losses from the drop in the long position's value.

Moving together with Rio Stock

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Moving against Rio Stock

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The ability to find closely correlated positions to Rio Tinto could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rio Tinto 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 Rio Tinto - 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 Rio Tinto ADR to buy it.
The correlation of Rio Tinto 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 Rio Tinto moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rio Tinto ADR 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 Rio Tinto 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 CorrelationCorrelation Matching
When determining whether Rio Tinto ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Rio Tinto's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Rio Tinto Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rio Tinto Adr Stock:
Is Diversified Metals & Mining space 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 Rio Tinto. If investors know Rio 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 Rio Tinto 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
0.133
Dividend Share
4.349
Earnings Share
6.59
Revenue Per Share
33.396
Quarterly Revenue Growth
0.005
The market value of Rio Tinto ADR is measured differently than its book value, which is the value of Rio that is recorded on the company's balance sheet. Investors also form their own opinion of Rio Tinto's value that differs from its market value or its book value, called intrinsic value, which is Rio Tinto'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 Rio Tinto's market value can be influenced by many factors that don't directly affect Rio Tinto'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 Rio Tinto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rio Tinto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rio Tinto'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.