Arcos Net Invested Capital vs Net Debt Analysis

ARCO Stock

USD 7.50 0.18 2.46%

Arcos Dorados financial indicator trend analysis is way more than just evaluating Arcos Dorados Holdings prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Arcos Dorados Holdings is a good investment. Please check the relationship between Arcos Dorados Net Invested Capital and its Net Debt accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arcos Dorados Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Net Invested Capital vs Net Debt

Net Invested Capital vs Net Debt Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Arcos Dorados Holdings Net Invested Capital account and Net Debt. At this time, the significance of the direction appears to have significant contrarian relationship.

The correlation between Arcos Dorados' Net Invested Capital and Net Debt is -0.24. Overlapping area represents the amount of variation of Net Invested Capital that can explain the historical movement of Net Debt in the same time period over historical financial statements of Arcos Dorados Holdings, assuming nothing else is changed. The correlation between historical values of Arcos Dorados' Net Invested Capital and Net Debt is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Invested Capital of Arcos Dorados Holdings are associated (or correlated) with its Net Debt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Debt has no effect on the direction of Net Invested Capital i.e., Arcos Dorados' Net Invested Capital and Net Debt go up and down completely randomly.

Correlation Coefficient

-0.24

Relationship Direction	Negative
Relationship Strength	Insignificant

View All Relationships

Net Invested Capital

The total amount of capital invested in a company, including both equity and debt, minus any cash or cash equivalents.

Net Debt

The total debt of a company minus its cash and cash equivalents. It represents the actual debt burden on the company after accounting for the liquid assets it holds.

Most indicators from Arcos Dorados' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Arcos Dorados Holdings current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arcos Dorados Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

At this time, Arcos Dorados' Sales General And Administrative To Revenue is very stable compared to the past year. As of the 21st of December 2024, Enterprise Value Over EBITDA is likely to grow to 10.52, while Selling General Administrative is likely to drop about 205.2 M.

	2021	2022	2023	2024 (projected)
Gross Profit	324.1M	2.6B	597.1M	642.2M
Total Revenue	2.7B	3.6B	4.3B	2.6B

Gross Profit Total Revenue

Arcos Dorados fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Other Liab	Property Plant And Equipment Net	Current Deferred Revenue	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Other Assets	Long Term Debt	Cash And Short Term Investments	Net Receivables	Good Will	Common Stock Total Equity	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab
Total Assets		0.88	0.1	0.77	-0.01	-0.17	0.97	-0.25	0.86	0.75	0.76	0.23	0.98	0.46	0.05	0.64	0.35	0.32	-0.2	0.63	-0.3	0.9	-0.07	0.37	-0.43	0.94
Short Long Term Debt Total	0.88		0.25	0.56	-0.45	-0.22	0.94	-0.36	0.99	0.49	0.57	0.15	0.93	0.44	0.0	0.62	0.25	0.01	-0.51	0.62	-0.3	0.99	-0.37	0.2	-0.62	0.98
Other Current Liab	0.1	0.25		0.14	-0.41	-0.34	0.15	-0.79	0.24	-0.06	0.2	0.11	0.14	0.14	-0.2	0.42	0.15	-0.14	-0.35	0.36	-0.08	0.23	-0.21	0.22	-0.01	0.23
Total Current Liabilities	0.77	0.56	0.14		0.12	-0.34	0.68	-0.35	0.53	0.71	0.89	0.33	0.67	0.38	-0.34	0.44	0.49	0.34	-0.05	0.76	-0.21	0.54	0.2	0.39	0.01	0.68
Total Stockholder Equity	-0.01	-0.45	-0.41	0.12		0.1	-0.14	0.46	-0.44	0.33	0.08	-0.11	-0.13	-0.14	0.19	-0.1	-0.1	0.65	0.8	-0.2	0.29	-0.41	0.62	0.29	0.46	-0.33
Other Liab	-0.17	-0.22	-0.34	-0.34	0.1		-0.21	0.2	-0.24	-0.18	-0.37	0.08	-0.16	0.26	0.63	-0.52	0.09	0.03	0.25	-0.69	0.03	-0.14	-0.04	-0.28	-0.06	-0.19
Property Plant And Equipment Net	0.97	0.94	0.15	0.68	-0.14	-0.21		-0.3	0.94	0.67	0.65	0.06	1.0	0.41	0.02	0.6	0.19	0.23	-0.27	0.64	-0.29	0.94	-0.23	0.29	-0.54	0.96
Current Deferred Revenue	-0.25	-0.36	-0.79	-0.35	0.46	0.2	-0.3		-0.35	-0.15	-0.37	-0.08	-0.28	-0.14	0.25	-0.31	-0.19	0.13	0.4	-0.45	0.46	-0.34	0.26	-0.12	0.19	-0.37
Net Debt	0.86	0.99	0.24	0.53	-0.44	-0.24	0.94	-0.35		0.46	0.52	0.03	0.93	0.42	0.0	0.59	0.14	0.0	-0.47	0.61	-0.29	0.98	-0.4	0.2	-0.64	0.96
Retained Earnings	0.75	0.49	-0.06	0.71	0.33	-0.18	0.67	-0.15	0.46		0.82	0.3	0.68	0.0	-0.03	0.4	0.42	0.45	-0.15	0.63	-0.15	0.52	0.2	0.16	-0.37	0.6
Accounts Payable	0.76	0.57	0.2	0.89	0.08	-0.37	0.65	-0.37	0.52	0.82		0.52	0.64	0.23	-0.23	0.62	0.64	0.28	-0.26	0.74	-0.17	0.57	0.34	0.44	-0.1	0.68
Cash	0.23	0.15	0.11	0.33	-0.11	0.08	0.06	-0.08	0.03	0.3	0.52		0.08	0.21	0.01	0.26	0.98	0.08	-0.41	0.2	-0.11	0.2	0.22	0.02	0.09	0.24
Non Current Assets Total	0.98	0.93	0.14	0.67	-0.13	-0.16	1.0	-0.28	0.93	0.68	0.64	0.08		0.44	0.06	0.6	0.21	0.24	-0.26	0.62	-0.31	0.94	-0.22	0.29	-0.55	0.96
Non Currrent Assets Other	0.46	0.44	0.14	0.38	-0.14	0.26	0.41	-0.14	0.42	0.0	0.23	0.21	0.44		0.0	0.34	0.26	0.05	0.16	0.08	-0.18	0.45	-0.07	0.46	0.09	0.48
Other Assets	0.05	0.0	-0.2	-0.34	0.19	0.63	0.02	0.25	0.0	-0.03	-0.23	0.01	0.06	0.0		-0.03	0.02	0.19	0.18	-0.51	0.17	0.09	0.1	0.01	-0.15	0.01
Long Term Debt	0.64	0.62	0.42	0.44	-0.1	-0.52	0.6	-0.31	0.59	0.4	0.62	0.26	0.6	0.34	-0.03		0.28	0.09	-0.23	0.55	-0.26	0.62	0.16	0.72	-0.16	0.63
Cash And Short Term Investments	0.35	0.25	0.15	0.49	-0.1	0.09	0.19	-0.19	0.14	0.42	0.64	0.98	0.21	0.26	0.02	0.28		0.17	-0.4	0.31	-0.12	0.3	0.21	0.04	0.06	0.36
Net Receivables	0.32	0.01	-0.14	0.34	0.65	0.03	0.23	0.13	0.0	0.45	0.28	0.08	0.24	0.05	0.19	0.09	0.17		0.48	0.14	0.2	0.04	0.1	0.11	0.27	0.1
Good Will	-0.2	-0.51	-0.35	-0.05	0.8	0.25	-0.27	0.4	-0.47	-0.15	-0.26	-0.41	-0.26	0.16	0.18	-0.23	-0.4	0.48		-0.42	0.24	-0.5	0.41	0.35	0.61	-0.44
Common Stock Total Equity	0.63	0.62	0.36	0.76	-0.2	-0.69	0.64	-0.45	0.61	0.63	0.74	0.2	0.62	0.08	-0.51	0.55	0.31	0.14	-0.42		-0.23	0.57	-0.11	0.13	-0.25	0.66
Common Stock Shares Outstanding	-0.3	-0.3	-0.08	-0.21	0.29	0.03	-0.29	0.46	-0.29	-0.15	-0.17	-0.11	-0.31	-0.18	0.17	-0.26	-0.12	0.2	0.24	-0.23		-0.31	0.26	-0.05	0.28	-0.31
Non Current Liabilities Total	0.9	0.99	0.23	0.54	-0.41	-0.14	0.94	-0.34	0.98	0.52	0.57	0.2	0.94	0.45	0.09	0.62	0.3	0.04	-0.5	0.57	-0.31		-0.35	0.2	-0.64	0.98
Inventory	-0.07	-0.37	-0.21	0.2	0.62	-0.04	-0.23	0.26	-0.4	0.2	0.34	0.22	-0.22	-0.07	0.1	0.16	0.21	0.1	0.41	-0.11	0.26	-0.35		0.55	0.57	-0.26
Other Current Assets	0.37	0.2	0.22	0.39	0.29	-0.28	0.29	-0.12	0.2	0.16	0.44	0.02	0.29	0.46	0.01	0.72	0.04	0.11	0.35	0.13	-0.05	0.2	0.55		0.31	0.26
Other Stockholder Equity	-0.43	-0.62	-0.01	0.01	0.46	-0.06	-0.54	0.19	-0.64	-0.37	-0.1	0.09	-0.55	0.09	-0.15	-0.16	0.06	0.27	0.61	-0.25	0.28	-0.64	0.57	0.31		-0.55
Total Liab	0.94	0.98	0.23	0.68	-0.33	-0.19	0.96	-0.37	0.96	0.6	0.68	0.24	0.96	0.48	0.01	0.63	0.36	0.1	-0.44	0.66	-0.31	0.98	-0.26	0.26	-0.55

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Arcos Dorados Account Relationship Matchups

Arcos Dorados fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	2.6B	2.3B	2.4B	2.6B	3.0B	2.2B
Short Long Term Debt Total	1.6B	1.6B	1.5B	1.6B	1.7B	1.0B
Other Current Liab	12.6M	142.7M	127.4M	157M	172.7M	105.2M
Total Current Liabilities	595.4M	503.5M	617.9M	759.4M	841.7M	653.7M
Total Stockholder Equity	421.1M	197.5M	220.4M	323.6M	515.3M	361.5M
Other Liab	51.9M	51.9M	61.0M	75.3M	67.8M	58.7M
Property Plant And Equipment Net	1.9B	1.6B	1.5B	1.7B	2.1B	1.4B
Current Deferred Revenue	236.6M	172.5M	250.0M	(6.0M)	(5.4M)	(5.2M)
Net Debt	1.4B	1.4B	1.3B	1.3B	1.5B	826.4M
Retained Earnings	471.1M	290.9M	316.2M	424.9M	566.2M	382.2M
Accounts Payable	259.6M	209.5M	269.2M	353.5M	375.0M	270.6M
Cash	121.9M	166.0M	278.8M	266.9M	196.7M	212.3M
Non Current Assets Total	2.2B	1.9B	1.8B	2.0B	2.4B	1.6B
Non Currrent Assets Other	15.9M	76.4M	188.4M	114.1M	153.2M	88.0M
Other Assets	188.9M	253.9M	154.7M	206.2M	185.6M	160.7M
Long Term Debt	623.6M	788.0M	739.2M	711.7M	713.0M	695.4M
Cash And Short Term Investments	121.9M	166.0M	278.8M	304.4M	246.8M	220.2M
Net Receivables	128.0M	114.2M	104.2M	151.1M	186.7M	112.8M
Good Will	6.8M	5.6M	5.2M	7.2M	11.9M	9.1M
Common Stock Total Equity	509.6M	512.8M	516.1M	519.5M	597.4M	530.0M
Common Stock Shares Outstanding	210.4M	208.4M	210.5M	210.6M	210.6M	171.4M
Liabilities And Stockholders Equity	2.6B	2.3B	2.4B	2.6B	3.0B	2.2B
Non Current Liabilities Total	1.5B	1.6B	1.5B	1.6B	1.7B	1.1B
Inventory	37.8M	33.6M	37.8M	50.1M	52.8M	43.5M
Other Current Assets	322K	101.7M	119.3M	178.8M	119.0M	96.2M
Other Stockholder Equity	(46.6M)	(28.0M)	(9.3M)	(10.2M)	(10.6M)	(10.1M)
Total Liab	2.1B	2.1B	2.1B	2.3B	2.5B	1.7B
Property Plant And Equipment Gross	1.9B	1.6B	2.3B	2.6B	3.2B	3.3B
Total Current Assets	405.4M	415.5M	540.1M	684.4M	605.3M	575.1M
Accumulated Other Comprehensive Income	(519.5M)	(584.9M)	(607.8M)	(613.5M)	(563.1M)	(591.2M)
Short Term Debt	86.7M	60.0M	83.9M	102.3M	130.9M	137.4M
Intangible Assets	36.3M	31.4M	33.6M	47.3M	58.1M	43.5M
Common Stock	516.1M	519.5M	521.3M	522.3M	522.8M	539.1M
Property Plant Equipment	1.9B	1.6B	1.5B	1.7B	1.9B	1.3B
Net Tangible Assets	378.1M	160.5M	181.6M	269.1M	242.1M	268.5M
Long Term Investments	29.0M	1.6M	13.1M	14.7M	18.1M	14.3M
Short Long Term Debt	16.5M	7.9M	4.7M	19.4M	31.3M	29.8M

Pair Trading with Arcos Dorados

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 Arcos Dorados 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 Arcos Dorados will appreciate offsetting losses from the drop in the long position's value.

Moving against Arcos Stock

0.8	CSV	Carriage Services	Pair Corr
0.77	BH	Biglari Holdings	Pair Corr
0.76	WH	Wyndham Hotels Resorts	Pair Corr
0.72	BYD	Boyd Gaming	Pair Corr
0.72	EAT	Brinker International	Pair Corr

The ability to find closely correlated positions to Arcos Dorados could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arcos Dorados 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 Arcos Dorados - 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 Arcos Dorados Holdings to buy it.

The correlation of Arcos Dorados 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 Arcos Dorados moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arcos Dorados Holdings 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 Arcos Dorados 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 Correlation Correlation Matching

When determining whether Arcos Dorados Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Arcos Dorados' 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 Arcos Dorados Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Arcos Dorados Holdings Stock:

How To Invest In Arcos

Details

Is Arcos Stock a good investment?

Details

What is Arcos Dorados' Net Worth?

Details

Largest Hotels, Restaurants & Leisure Companies

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Largest Consumer Services Companies

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Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arcos Dorados Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Is Hotels, Restaurants & Leisure 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 Arcos Dorados. If investors know Arcos 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 Arcos Dorados 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

(0.08)

Earnings Share

0.69

Revenue Per Share

21.328

Quarterly Revenue Growth

0.068

Return On Assets

0.0693

The market value of Arcos Dorados Holdings is measured differently than its book value, which is the value of Arcos that is recorded on the company's balance sheet. Investors also form their own opinion of Arcos Dorados' value that differs from its market value or its book value, called intrinsic value, which is Arcos Dorados' 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 Arcos Dorados' market value can be influenced by many factors that don't directly affect Arcos Dorados' 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 Arcos Dorados' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arcos Dorados is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arcos Dorados' 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.

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Arcos Net Invested Capital vs Net Debt Analysis

Net Invested Capital vs Net Debt

Net Invested Capital vs Net Debt Correlation Analysis

Correlation Coefficient

Net Invested Capital

Net Debt

Arcos Dorados fundamental ratios Correlations

Arcos Dorados Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Arcos Dorados fundamental ratios Accounts

Pair Trading with Arcos Dorados

Moving against Arcos Stock

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Non Current Assets Total	+ 1.0	Property Plant And Equipment Net
Net Debt	+ 0.99	Short Long Term Debt Total
Non Current Liabilities Total	+ 0.99	Short Long Term Debt Total
Non Current Assets Total	+ 0.98	Total Assets
Total Liab	+ 0.98	Short Long Term Debt Total
Non Current Liabilities Total	+ 0.98	Net Debt

Current Deferred Revenue	- 0.79	Other Current Liab
Common Stock Total Equity	- 0.69	Other Liab
Other Stockholder Equity	- 0.64	Non Current Liabilities Total
Other Stockholder Equity	- 0.64	Net Debt
Other Stockholder Equity	- 0.62	Short Long Term Debt Total
Total Liab	- 0.55	Other Stockholder Equity