Canaan Operating Income vs Gross Profit Analysis

CAN Stock

USD 1.97 0.15 8.24%

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

Operating Income vs Gross Profit

Operating Income vs Gross Profit Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Canaan Inc Operating Income account and Gross Profit. At this time, the significance of the direction appears to have totally related.

The correlation between Canaan's Operating Income and Gross Profit is 0.99. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Gross Profit in the same time period over historical financial statements of Canaan Inc, assuming nothing else is changed. The correlation between historical values of Canaan's Operating Income and Gross Profit is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of Canaan Inc are associated (or correlated) with its Gross Profit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit has no effect on the direction of Operating Income i.e., Canaan's Operating Income and Gross Profit go up and down completely randomly.

Correlation Coefficient

0.99

Relationship Direction	Positive
Relationship Strength	Very Strong

View All Relationships

Operating Income

Operating Income is the amount of profit realized from Canaan Inc operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Canaan Inc is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Canaan Inc minus its cost of goods sold. It is profit before Canaan operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Most indicators from Canaan's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Canaan Inc 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 Canaan Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

As of the 25th of November 2024, Sales General And Administrative To Revenue is likely to grow to 0.35, though Tax Provision is likely to grow to (48.8 M).

	2021	2022	2023	2024 (projected)
Depreciation And Amortization	2.2M	33.9M	59.6M	62.6M
Interest Income	7.3M	15.9M	956K	908.2K

Depreciation And Amortization Interest Income

Canaan fundamental ratios Correlations

	Total Assets	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Net Tangible Assets	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	Cash And Short Term Investments	Net Receivables	Common Stock Total Equity	Common Stock Shares Outstanding	Short Term Investments	Capital Surpluse	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Net Invested Capital	Property Plant And Equipment Gross
Total Assets		-0.29	0.67	0.78	-0.41	-0.04	0.67	0.13	0.83	0.92	0.53	-0.31	-0.12	-0.13	0.78	0.35	0.36	-0.57	0.7	-0.89	0.82	-0.35	0.13	0.67	-0.01	-0.56
Other Current Liab	-0.29		-0.03	-0.38	0.56	0.28	-0.15	-0.15	-0.44	-0.52	0.6	0.39	0.46	0.41	0.24	-0.1	-0.23	0.74	-0.64	0.58	-0.26	0.81	0.08	-0.01	0.5	0.33
Total Current Liabilities	0.67	-0.03		0.07	-0.36	-0.09	0.06	0.75	0.21	0.52	0.52	-0.22	-0.17	-0.22	0.49	0.76	0.17	-0.11	0.07	-0.61	0.92	-0.28	-0.44	1.0	-0.07	-0.34
Total Stockholder Equity	0.78	-0.38	0.07		-0.25	0.03	0.84	-0.45	0.94	0.81	0.27	-0.24	-0.02	0.0	0.64	-0.16	0.34	-0.68	0.89	-0.69	0.33	-0.24	0.54	0.06	0.04	-0.48
Net Tangible Assets	-0.41	0.56	-0.36	-0.25		0.65	-0.44	-0.22	-0.5	-0.67	-0.01	0.96	0.68	0.48	-0.26	0.02	-0.73	0.81	-0.56	0.75	-0.32	0.71	0.52	-0.35	0.36	0.91
Property Plant And Equipment Net	-0.04	0.28	-0.09	0.03	0.65		-0.36	0.03	-0.04	-0.27	0.05	0.72	0.97	0.9	-0.13	0.37	-0.15	0.57	-0.37	0.33	0.11	0.72	0.27	-0.09	0.8	0.55
Current Deferred Revenue	0.67	-0.15	0.06	0.84	-0.44	-0.36		-0.55	0.84	0.75	0.46	-0.54	-0.31	-0.22	0.79	-0.43	0.45	-0.72	0.85	-0.65	0.14	-0.27	0.37	0.06	-0.1	-0.72
Net Debt	0.13	-0.15	0.75	-0.45	-0.22	0.03	-0.55		-0.29	0.04	-0.05	-0.01	-0.1	-0.15	-0.2	0.88	-0.01	0.18	-0.35	-0.21	0.66	-0.26	-0.68	0.75	-0.12	0.04
Retained Earnings	0.83	-0.44	0.21	0.94	-0.5	-0.04	0.84	-0.29		0.91	0.32	-0.48	-0.08	0.02	0.67	-0.08	0.59	-0.77	0.88	-0.82	0.44	-0.31	0.26	0.21	0.1	-0.7
Accounts Payable	0.92	-0.52	0.52	0.81	-0.67	-0.27	0.75	0.04	0.91		0.35	-0.6	-0.35	-0.28	0.69	0.14	0.55	-0.83	0.86	-0.98	0.67	-0.56	0.03	0.52	-0.15	-0.77
Cash	0.53	0.6	0.52	0.27	-0.01	0.05	0.46	-0.05	0.32	0.35		-0.12	0.17	0.16	0.89	0.07	0.21	0.06	0.04	-0.26	0.37	0.36	0.02	0.53	0.4	-0.33
Non Current Assets Total	-0.31	0.39	-0.22	-0.24	0.96	0.72	-0.54	-0.01	-0.48	-0.6	-0.12		0.68	0.45	-0.34	0.25	-0.75	0.78	-0.54	0.64	-0.12	0.59	0.46	-0.21	0.3	0.94
Non Currrent Assets Other	-0.12	0.46	-0.17	-0.02	0.68	0.97	-0.31	-0.1	-0.08	-0.35	0.17	0.68		0.95	-0.05	0.21	-0.12	0.63	-0.44	0.43	-0.03	0.86	0.24	-0.16	0.89	0.51
Other Assets	-0.13	0.41	-0.22	0.0	0.48	0.9	-0.22	-0.15	0.02	-0.28	0.16	0.45	0.95		-0.03	0.1	0.16	0.5	-0.38	0.36	-0.09	0.83	0.15	-0.22	0.96	0.3
Cash And Short Term Investments	0.78	0.24	0.49	0.64	-0.26	-0.13	0.79	-0.2	0.67	0.69	0.89	-0.34	-0.05	-0.03		-0.05	0.35	-0.36	0.49	-0.59	0.45	0.04	0.16	0.49	0.19	-0.58
Net Receivables	0.35	-0.1	0.76	-0.16	0.02	0.37	-0.43	0.88	-0.08	0.14	0.07	0.25	0.21	0.1	-0.05		-0.05	0.25	-0.24	-0.26	0.81	-0.09	-0.31	0.76	0.11	0.16
Common Stock Total Equity	0.36	-0.23	0.17	0.34	-0.73	-0.15	0.45	-0.01	0.59	0.55	0.21	-0.75	-0.12	0.16	0.35	-0.05		-0.55	0.39	-0.56	0.21	-0.17	-0.26	0.16	0.29	-0.82
Common Stock Shares Outstanding	-0.57	0.74	-0.11	-0.68	0.81	0.57	-0.72	0.18	-0.77	-0.83	0.06	0.78	0.63	0.5	-0.36	0.25	-0.55		-0.91	0.82	-0.24	0.76	0.0	-0.1	0.44	0.8
Short Term Investments	0.7	-0.64	0.07	0.89	-0.56	-0.37	0.85	-0.35	0.88	0.86	0.04	-0.54	-0.44	-0.38	0.49	-0.24	0.39	-0.91		-0.8	0.28	-0.62	0.32	0.06	-0.35	-0.66
Capital Surpluse	-0.89	0.58	-0.61	-0.69	0.75	0.33	-0.65	-0.21	-0.82	-0.98	-0.26	0.64	0.43	0.36	-0.59	-0.26	-0.56	0.82	-0.8		-0.73	0.66	0.11	-0.6	0.24	0.79
Inventory	0.82	-0.26	0.92	0.33	-0.32	0.11	0.14	0.66	0.44	0.67	0.37	-0.12	-0.03	-0.09	0.45	0.81	0.21	-0.24	0.28	-0.73		-0.32	-0.22	0.91	0.01	-0.31
Other Current Assets	-0.35	0.81	-0.28	-0.24	0.71	0.72	-0.27	-0.26	-0.31	-0.56	0.36	0.59	0.86	0.83	0.04	-0.09	-0.17	0.76	-0.62	0.66	-0.32		0.19	-0.27	0.84	0.49
Other Stockholder Equity	0.13	0.08	-0.44	0.54	0.52	0.27	0.37	-0.68	0.26	0.03	0.02	0.46	0.24	0.15	0.16	-0.31	-0.26	0.0	0.32	0.11	-0.22	0.19		-0.44	0.06	0.3
Total Liab	0.67	-0.01	1.0	0.06	-0.35	-0.09	0.06	0.75	0.21	0.52	0.53	-0.21	-0.16	-0.22	0.49	0.76	0.16	-0.1	0.06	-0.6	0.91	-0.27	-0.44		-0.06	-0.33
Net Invested Capital	-0.01	0.5	-0.07	0.04	0.36	0.8	-0.1	-0.12	0.1	-0.15	0.4	0.3	0.89	0.96	0.19	0.11	0.29	0.44	-0.35	0.24	0.01	0.84	0.06	-0.06		0.13
Property Plant And Equipment Gross	-0.56	0.33	-0.34	-0.48	0.91	0.55	-0.72	0.04	-0.7	-0.77	-0.33	0.94	0.51	0.3	-0.58	0.16	-0.82	0.8	-0.66	0.79	-0.31	0.49	0.3	-0.33	0.13

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Canaan Account Relationship Matchups

Canaan fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	141.7M	158.8M	884.7M	690.0M	493.3M	568.5M
Other Current Liab	5.8M	75.6M	302.3M	56.2M	96.1M	93.7M
Total Current Liabilities	40.8M	90.8M	327.5M	75.8M	135.2M	248.9M
Total Stockholder Equity	99.0M	66.3M	543.3M	612.1M	348.2M	316.2M
Net Tangible Assets	692.8M	432.6M	3.5B	4.2B	4.9B	5.1B
Property Plant And Equipment Net	6.5M	4.1M	34.0M	90.3M	31.2M	33.4M
Current Deferred Revenue	1.2M	65.9M	210.3M	4.6M	19.6M	18.6M
Net Debt	(52.3M)	(54.1M)	(419.1M)	(100.8M)	(94.7M)	(90.0M)
Retained Earnings	(140.1M)	(168.3M)	141.5M	211.0M	(219.6M)	(208.6M)
Accounts Payable	14.2M	5.7M	22.5M	16.7M	6.2M	5.9M
Cash	73.8M	59.9M	421.7M	102.3M	96.2M	135.9M
Non Current Assets Total	7.2M	4.5M	56.4M	130.2M	137.2M	144.0M
Non Currrent Assets Other	750.3K	387.6K	19.2M	37.0M	8.0M	11.9M
Other Assets	0.0	2.5M	122.3M	256.1M	1.0	0.95
Cash And Short Term Investments	75.4M	69.5M	421.7M	105.7M	96.2M	147.9M
Net Receivables	410.5K	15.4M	57.8K	73.1M	58.4M	38.6M
Common Stock Shares Outstanding	143.5M	156.4M	171.7M	171.9M	171.9M	173.7M
Short Term Investments	0.0	1.6M	9.6M	3.4M	3.7M	3.6M
Liabilities And Stockholders Equity	141.7M	158.8M	884.7M	690.0M	493.3M	568.5M
Non Current Liabilities Total	1.9M	1.7M	13.9M	2.1M	9.9M	10.4M
Inventory	28.0M	34.5M	127.6M	213.2M	142.3M	159.0M
Other Current Assets	29.4M	35.0M	281.5M	239.2M	66.8M	103.2M
Other Stockholder Equity	233.2M	261.5M	432.7M	435.2M	596.8M	398.8M
Total Liab	42.7M	92.5M	341.4M	77.9M	145.1M	252.3M
Net Invested Capital	820.2M	481.3M	3.5B	4.4B	348.2M	330.8M
Property Plant And Equipment Gross	45.4M	26.6M	34.0M	91.0M	117.3M	123.1M
Total Current Assets	134.5M	154.3M	828.4M	559.8M	356.1M	523.6M
Accumulated Other Comprehensive Income	6.0M	(12.2M)	(16.0M)	(37.2M)	(29.0M)	(27.5M)
Net Working Capital	655.6M	414.7M	3.2B	3.5B	228.5M	217.1M
Short Term Debt	19.6M	9.4M	2.3M	2.3M	1.2M	1.2M
Property Plant Equipment	45.4M	26.6M	216.5M	627.6M	721.7M	757.8M
Short Long Term Debt Total	21.5M	5.8M	2.6M	1.5M	1.4M	1.4M

Pair Trading with Canaan

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

Moving against Canaan Stock

0.85	CDW	CDW Corp	Pair Corr
0.81	BKRKY	Bank Rakyat	Pair Corr
0.8	ACLS	Axcelis Technologies	Pair Corr
0.78	TER	Teradyne	Pair Corr
0.66	VECO	Veeco Instruments	Pair Corr

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

The correlation of Canaan 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 Canaan moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canaan Inc 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 Canaan 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 Canaan Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Canaan'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 Canaan Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Canaan Inc Stock:

How To Invest In Canaan

Details

Is Canaan Stock a good investment?

Details

What is Canaan's Net Worth?

Details

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

You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Is Semiconductors & Semiconductor Equipment 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 Canaan. If investors know Canaan 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 Canaan 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

(0.92)

Earnings Share

(1.43)

Revenue Per Share

0.867

Quarterly Revenue Growth

(0.03)

Return On Assets

(0.36)

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

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Canaan Operating Income vs Gross Profit Analysis

Operating Income vs Gross Profit

Operating Income vs Gross Profit Correlation Analysis

Correlation Coefficient

Operating Income

Gross Profit

Canaan fundamental ratios Correlations

Canaan Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Canaan fundamental ratios Accounts

Pair Trading with Canaan

Moving against Canaan Stock

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Total Liab	+ 1.0	Total Current Liabilities
Non Currrent Assets Other	+ 0.97	Property Plant And Equipment Net
Non Current Assets Total	+ 0.96	Net Tangible Assets
Net Invested Capital	+ 0.96	Other Assets
Other Assets	+ 0.95	Non Currrent Assets Other
Retained Earnings	+ 0.94	Total Stockholder Equity

Capital Surpluse	- 0.98	Accounts Payable
Short Term Investments	- 0.91	Common Stock Shares Outstanding
Capital Surpluse	- 0.89	Total Assets
Common Stock Shares Outstanding	- 0.83	Accounts Payable
Property Plant And Equipment Gross	- 0.82	Common Stock Total Equity
Capital Surpluse	- 0.82	Retained Earnings