Should you keep an eye on HDFC Bank (USA Stocks:HDB) management before February?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. HDFC Bank has an asset utilization ratio of 4.83 percent. This suggests that the company is making $0.0483 for each dollar of assets. An increasing asset utilization means that HDFC Bank Limited is more efficient with each dollar of assets it utilizes for everyday operations.

Investing in HDFC Bank, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding HDFC Bank along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of HDFC Bank's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.

HDFC Bank financial leverage refers to using borrowed capital as a funding source to finance HDFC Bank Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HDFC Bank financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to HDFC Bank's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of HDFC Bank's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between HDFC Bank's total debt and its cash.

HDFC Bank Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing HDFC Bank previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show HDFC Bank Gross Profit growth over the last 10 years. Please check HDFC Bank's gross profit and other fundamental indicators for more details.

Investors in HDFC can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in HDFC Bank Limited. Diversification will allow for the same portfolio return with reduced risk. The correlation table of HDFC Bank and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities HDFC is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of HDFC for more details