Chongqing Landai Return On Asset vs. Return On Equity

002765 Stock   10.21  0.52  4.85%   
Considering the key profitability indicators obtained from Chongqing Landai's historical financial statements, Chongqing Landai Powertrain may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Chongqing Landai's ability to earn profits and add value for shareholders.
For Chongqing Landai profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chongqing Landai to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chongqing Landai Powertrain utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chongqing Landai's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chongqing Landai Powertrain over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Chongqing Landai's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chongqing Landai is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chongqing Landai'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.

Chongqing Landai Pow Return On Equity vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Chongqing Landai's current stock value. Our valuation model uses many indicators to compare Chongqing Landai value to that of its competitors to determine the firm's financial worth.
Chongqing Landai Powertrain is number one stock in return on asset category among its peers. It also is number one stock in return on equity category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Chongqing Landai by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chongqing Landai'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.

Chongqing Return On Equity vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Chongqing Landai

Return On Asset

 = 

Net Income

Total Assets

 = 
3.0E-4
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.

Chongqing Landai

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.12
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.

Chongqing Return On Equity Comparison

Chongqing Landai is currently under evaluation in return on equity category among its peers.

Chongqing Landai Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chongqing Landai, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chongqing Landai will eventually generate negative long term returns. The profitability progress is the general direction of Chongqing Landai's change in net profit over the period of time. It can combine multiple indicators of Chongqing Landai, 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 ReportedProjected for Next Year
Operating Income110.8 M130.8 M
Income Before Tax-383.4 M-364.2 M
Income Tax Expense25 M26.3 M
Net Loss-371 M-352.5 M
Total Other Income Expense Net-37.3 K-35.4 K
Net Income Applicable To Common Shares189 M198.5 M
Net Loss-365.1 M-346.8 M
Net Interest Income-12.1 M-12.7 M
Interest Income12.9 M13.6 M
Change To Netincome124.5 M69.8 M

Chongqing Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Chongqing Landai. 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 Chongqing Landai 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 Chongqing Landai's important profitability drivers and their relationship over time.

Use Chongqing Landai 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 Chongqing Landai 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 Chongqing Landai will appreciate offsetting losses from the drop in the long position's value.

Chongqing Landai Pair Trading

Chongqing Landai Powertrain Pair Trading Analysis

The ability to find closely correlated positions to Chongqing Landai could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chongqing Landai 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 Chongqing Landai - 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 Chongqing Landai Powertrain to buy it.
The correlation of Chongqing Landai 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 Chongqing Landai moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chongqing Landai Pow 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 Chongqing Landai 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 CorrelationCorrelation Matching

Use Investing Themes to Complement your Chongqing Landai position

In addition to having Chongqing Landai 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?

Run Petroleum and Natural Gas Thematic Idea Now

Petroleum and Natural Gas
Petroleum and Natural Gas Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Petroleum and Natural Gas Theme or any other thematic opportunities.
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Other Information on Investing in Chongqing Stock

To fully project Chongqing Landai's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Chongqing Landai Pow 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 Chongqing Landai's income statement, its balance sheet, and the statement of cash flows.
Potential Chongqing Landai investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Chongqing Landai investors may work on each financial statement separately, they are all related. The changes in Chongqing Landai's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Chongqing Landai's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.