Zhejiang Construction Return On Equity vs. Gross Profit
| 002761 Stock | 10.16 0.56 5.22% |
For Zhejiang Construction profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zhejiang Construction to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zhejiang Construction Investment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Zhejiang Construction's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Zhejiang Construction Investment over time as well as its relative position and ranking within its peers.
Zhejiang |
Zhejiang Construction Gross Profit vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Zhejiang Construction's current stock value. Our valuation model uses many indicators to compare Zhejiang Construction value to that of its competitors to determine the firm's financial worth. Zhejiang Construction Investment is number one stock in return on equity category among its peers. It also is number one stock in gross profit category among its peers fabricating about 305,763,174,909 of Gross Profit per Return On Equity. At present, Zhejiang Construction's Gross Profit 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 Zhejiang Construction by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Zhejiang Construction'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.Zhejiang Gross Profit 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.
Zhejiang Construction |
| = | 0.0165 |
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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Zhejiang Construction |
| = | 5.05 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Zhejiang Gross Profit Comparison
Zhejiang Construction is currently under evaluation in gross profit category among its peers.
Zhejiang Construction Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Zhejiang Construction, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Zhejiang Construction will eventually generate negative long term returns. The profitability progress is the general direction of Zhejiang Construction's change in net profit over the period of time. It can combine multiple indicators of Zhejiang Construction, 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 | ||
| Operating Income | 1.5 B | 1.1 B | |
| Income Before Tax | 864.2 M | 699.6 M | |
| Net Income Applicable To Common Shares | 1.1 B | 608.1 M | |
| Net Income | 391.7 M | 557.5 M | |
| Income Tax Expense | 486.3 M | 248.2 M | |
| Net Income From Continuing Ops | 602.8 M | 632.1 M | |
| Total Other Income Expense Net | -40.7 M | -42.7 M | |
| Net Interest Income | 347.4 M | 364.7 M | |
| Interest Income | 1.3 B | 1.4 B | |
| Change To Netincome | 2.4 B | 1.2 B |
Zhejiang Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Zhejiang Construction. 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 Zhejiang Construction 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 Zhejiang Construction's important profitability drivers and their relationship over time.
Use Zhejiang Construction 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 Zhejiang Construction 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 Zhejiang Construction will appreciate offsetting losses from the drop in the long position's value.Zhejiang Construction Pair Trading
Zhejiang Construction Investment Pair Trading Analysis
The ability to find closely correlated positions to Zhejiang Construction could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zhejiang Construction 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 Zhejiang Construction - 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 Zhejiang Construction Investment to buy it.
The correlation of Zhejiang Construction 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 Zhejiang Construction moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zhejiang Construction 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 Zhejiang Construction 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 Zhejiang Construction position
In addition to having Zhejiang Construction 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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Other Information on Investing in Zhejiang Stock
To fully project Zhejiang Construction's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Zhejiang Construction 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 Zhejiang Construction's income statement, its balance sheet, and the statement of cash flows.