Hua Xia Return On Asset vs. Gross Profit

600015 Stock   7.25  0.07  0.97%   
Based on the key profitability measurements obtained from Hua Xia's financial statements, Hua Xia Bank may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Hua Xia's ability to earn profits and add value for shareholders.
For Hua Xia profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hua Xia to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hua Xia Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hua Xia's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hua Xia Bank 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 Hua Xia's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hua Xia is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hua Xia'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.

Hua Xia Bank Gross Profit vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hua Xia's current stock value. Our valuation model uses many indicators to compare Hua Xia value to that of its competitors to determine the firm's financial worth.
Hua Xia Bank is number one stock in return on asset category among its peers. It also is number one stock in gross profit category among its peers fabricating about  9,703,846,153,846  of Gross Profit per Return On Asset. At present, Hua Xia'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 Hua Xia by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hua Xia'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.

Hua Gross Profit 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.

Hua Xia

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0065
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.
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.

Hua Xia

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
63.08 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.

Hua Gross Profit Comparison

Hua Xia is currently under evaluation in gross profit category among its peers.

Hua Xia Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hua Xia, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hua Xia will eventually generate negative long term returns. The profitability progress is the general direction of Hua Xia's change in net profit over the period of time. It can combine multiple indicators of Hua Xia, 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 Income31.6 B29.6 B
Income Before Tax35.4 B18.2 B
Net Income Applicable To Common Shares25.5 B26.8 B
Net Income26.4 B13.7 B
Income Tax Expense9.3 B9.8 B
Net Income From Continuing Ops26.8 B24.4 B
Total Other Income Expense Net59.4 M56.4 M
Net Interest Income70.4 B71.3 B
Interest Income155.6 B143 B
Change To Netincome-12.5 B-11.9 B

Hua Profitability Driver Comparison

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

Use Hua Xia 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 Hua Xia 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 Hua Xia will appreciate offsetting losses from the drop in the long position's value.

Hua Xia Pair Trading

Hua Xia Bank Pair Trading Analysis

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

In addition to having Hua Xia 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 Healthcare Funds Thematic Idea Now

Healthcare Funds
Healthcare Funds Theme
Funds or Etfs investing in medical and healthcare goods or services as well as hospital management or maintenance organizations. The Healthcare Funds theme has 35 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 Healthcare Funds Theme or any other thematic opportunities.
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Other Information on Investing in Hua Stock

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