RIO
Rio Tinto·NYSE
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8.82 / 10
Outperform
The fundamental analysis reveals a high-quality company with a net profit margin of 16.88% and a net profit to revenue ratio of 16.88%, both in the top quartile. However, the operating cycle is prolonged at 86.91 days, and the quick ratio is only 1.03, indicating potential liquidity and efficiency concerns that warrant monitoring.
Analysis Checks(7/10)
Operating cycle
Value86.91
Score1/3
Weight0.02%
1M Return0.03%
Value86.91
Score1/3
Weight0.02%
1M Return0.03%
Net cash flow from operating activities / Operating revenue (%)
Value25.77
Score2/3
Weight3.56%
1M Return4.77%
Value25.77
Score2/3
Weight3.56%
1M Return4.77%
Net profit margin (%)
Value16.88
Score3/3
Weight18.76%
1M Return22.48%
Value16.88
Score3/3
Weight18.76%
1M Return22.48%
Equity multiplier (DuPont analysis %)
Value1.97
Score3/3
Weight18.25%
1M Return22.41%
Value1.97
Score3/3
Weight18.25%
1M Return22.41%
Inventory turnover days
Value57.39
Score1/3
Weight0.36%
1M Return0.50%
Value57.39
Score1/3
Weight0.36%
1M Return0.50%
Equity multiplier
Value2.08
Score3/3
Weight18.93%
1M Return23.68%
Value2.08
Score3/3
Weight18.93%
1M Return23.68%
Quick ratio
Value1.03
Score0/3
Weight1.05%
1M Return1.42%
Value1.03
Score0/3
Weight1.05%
1M Return1.42%
EBIT / Total operating revenue (%)
Value26.17
Score3/3
Weight18.80%
1M Return23.43%
Value26.17
Score3/3
Weight18.80%
1M Return23.43%
Net profit / Total operating revenue (%)
Value16.88
Score3/3
Weight19.18%
1M Return23.01%
Value16.88
Score3/3
Weight19.18%
1M Return23.01%
Current ratio
Value1.53
Score2/3
Weight1.09%
1M Return1.53%
Value1.53
Score2/3
Weight1.09%
1M Return1.53%
Operating cycle
Value86.91
Score1/3
Weight0.02%
1M Return0.03%
Value86.91
Score1/3
Weight0.02%
1M Return0.03%
Equity multiplier
Value2.08
Score3/3
Weight18.93%
1M Return23.68%
Value2.08
Score3/3
Weight18.93%
1M Return23.68%
Net cash flow from operating activities / Operating revenue (%)
Value25.77
Score2/3
Weight3.56%
1M Return4.77%
Value25.77
Score2/3
Weight3.56%
1M Return4.77%
Quick ratio
Value1.03
Score0/3
Weight1.05%
1M Return1.42%
Value1.03
Score0/3
Weight1.05%
1M Return1.42%
Net profit margin (%)
Value16.88
Score3/3
Weight18.76%
1M Return22.48%
Value16.88
Score3/3
Weight18.76%
1M Return22.48%
EBIT / Total operating revenue (%)
Value26.17
Score3/3
Weight18.80%
1M Return23.43%
Value26.17
Score3/3
Weight18.80%
1M Return23.43%
Equity multiplier (DuPont analysis %)
Value1.97
Score3/3
Weight18.25%
1M Return22.41%
Value1.97
Score3/3
Weight18.25%
1M Return22.41%
Net profit / Total operating revenue (%)
Value16.88
Score3/3
Weight19.18%
1M Return23.01%
Value16.88
Score3/3
Weight19.18%
1M Return23.01%
Inventory turnover days
Value57.39
Score1/3
Weight0.36%
1M Return0.50%
Value57.39
Score1/3
Weight0.36%
1M Return0.50%
Current ratio
Value1.53
Score2/3
Weight1.09%
1M Return1.53%
Value1.53
Score2/3
Weight1.09%
1M Return1.53%
Is RIO fundamentally strong?
- RIO scores 8.82/10 on fundamentals and holds a Discounted valuation at present. Backed by its 7.55% ROE, 19.02% net margin, 11.41 P/E ratio, 1.89 P/B ratio, and -4.51% earnings growth, these metrics solidify its Outperform investment rating.
