Weichai Heavy Return On Equity vs. Net Income
| 000880 Stock | 11.84 0.94 7.36% |
For Weichai Heavy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Weichai Heavy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Weichai Heavy Machinery utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Weichai Heavy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Weichai Heavy Machinery over time as well as its relative position and ranking within its peers.
Weichai |
Weichai Heavy Machinery Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Weichai Heavy's current stock value. Our valuation model uses many indicators to compare Weichai Heavy value to that of its competitors to determine the firm's financial worth. Weichai Heavy Machinery is number one stock in return on equity category among its peers. It also is number one stock in net income category among its peers making up about 1,860,101,620 of Net Income per Return On Equity. At present, Weichai Heavy's Net Income is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Weichai Heavy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Weichai Heavy's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Weichai Net Income vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Weichai Heavy |
| = | 0.0895 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Weichai Heavy |
| = | 166.48 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Weichai Net Income Comparison
Weichai Heavy is currently under evaluation in net income category among its peers.
Weichai Heavy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Weichai Heavy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Weichai Heavy will eventually generate negative long term returns. The profitability progress is the general direction of Weichai Heavy's change in net profit over the period of time. It can combine multiple indicators of Weichai Heavy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 493.7 M | 509.5 M | |
| Operating Income | 68 M | 55.3 M | |
| Income Before Tax | 153.7 M | 103.3 M | |
| Net Income Applicable To Common Shares | 157.3 M | 85.7 M | |
| Net Income | 166.5 M | 93.6 M | |
| Income Tax Expense | 1.5 M | 1.5 M | |
| Net Income From Continuing Ops | 166.5 M | 92.1 M | |
| Total Other Income Expense Net | 45 M | 44.7 M | |
| Net Interest Income | 33.6 M | 18.8 M | |
| Interest Income | 33.7 M | 19.3 M | |
| Change To Netincome | -76.1 M | -72.2 M |
Weichai Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Weichai Heavy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Weichai Heavy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Weichai Heavy's important profitability drivers and their relationship over time.
Use Weichai Heavy in pair-trading
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 Weichai Heavy 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 Weichai Heavy will appreciate offsetting losses from the drop in the long position's value.Weichai Heavy Pair Trading
Weichai Heavy Machinery Pair Trading Analysis
The ability to find closely correlated positions to Weichai Heavy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Weichai Heavy 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 Weichai Heavy - 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 Weichai Heavy Machinery to buy it.
The correlation of Weichai Heavy 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 Weichai Heavy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Weichai Heavy Machinery 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 Weichai Heavy 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.Use Investing Themes to Complement your Weichai Heavy position
In addition to having Weichai Heavy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Airlines
Domestic and international airlines and airline services. The Airlines theme has 37 constituents at this time.
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Other Information on Investing in Weichai Stock
To fully project Weichai Heavy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Weichai Heavy Machinery at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Weichai Heavy's income statement, its balance sheet, and the statement of cash flows.