Guangdong Wens Gross Profit vs. Return On Asset

300498 Stock   17.45  0.22  1.28%   
Based on Guangdong Wens' profitability indicators, Guangdong Wens Foodstuff 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 Guangdong Wens' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2010-03-31
Previous Quarter
720 M
Current Value
4.4 B
Quarterly Volatility
2.6 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Guangdong Wens profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Guangdong Wens to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Guangdong Wens Foodstuff utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Guangdong Wens's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Guangdong Wens Foodstuff 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 Guangdong Wens' value and its price as these two are different measures arrived at by different means. Investors typically determine if Guangdong Wens is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guangdong Wens' 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.

Guangdong Wens Foodstuff Return On Asset vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Guangdong Wens's current stock value. Our valuation model uses many indicators to compare Guangdong Wens value to that of its competitors to determine the firm's financial worth.
Guangdong Wens Foodstuff is number one stock in gross profit category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Gross Profit to Return On Asset for Guangdong Wens Foodstuff is about  309,340,567,332 . At present, Guangdong Wens' Gross Profit is projected to decrease 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 Guangdong Wens by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Guangdong Wens' 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.

Guangdong Return On Asset vs. Gross Profit

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.

Guangdong Wens

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
12.87 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.
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.

Guangdong Wens

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0416
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.

Guangdong Return On Asset Comparison

Guangdong Wens is currently under evaluation in return on asset category among its peers.

Guangdong Wens Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Guangdong Wens, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Guangdong Wens will eventually generate negative long term returns. The profitability progress is the general direction of Guangdong Wens' change in net profit over the period of time. It can combine multiple indicators of Guangdong Wens, 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 Income-5.1 B-4.8 B
Income Before Tax-6.4 B-6.1 B
Income Tax Expense199.7 M160.5 M
Net Loss-6.4 B-6.1 B
Total Other Income Expense Net-95.7 M-90.9 M
Net Income Applicable To Common Shares4.8 B4.2 B
Net Loss-6.4 B-6.1 B
Net Interest Income-1.1 B-1.1 B
Interest Income212.5 M218.8 M
Change To Netincome3.6 B3.7 B

Guangdong Profitability Driver Comparison

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

Use Guangdong Wens 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 Guangdong Wens 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 Guangdong Wens will appreciate offsetting losses from the drop in the long position's value.

Guangdong Wens Pair Trading

Guangdong Wens Foodstuff Pair Trading Analysis

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

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Climate Change
Climate Change Theme
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Other Information on Investing in Guangdong Stock

To fully project Guangdong Wens' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Guangdong Wens Foodstuff 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 Guangdong Wens' income statement, its balance sheet, and the statement of cash flows.
Potential Guangdong Wens investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Guangdong Wens investors may work on each financial statement separately, they are all related. The changes in Guangdong Wens's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Guangdong Wens'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.