China Telecom Net Income vs. Return On Asset
| 601728 Stock | 6.42 0.21 3.17% |
Net Income | First Reported 2002-06-30 | Previous Quarter 8.6 B | Current Value 13.2 B | Quarterly Volatility 2.2 B |
For China Telecom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Telecom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Telecom Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Telecom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Telecom Corp over time as well as its relative position and ranking within its peers.
China |
China Telecom Corp Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining China Telecom's current stock value. Our valuation model uses many indicators to compare China Telecom value to that of its competitors to determine the firm's financial worth. China Telecom Corp is number one stock in net income category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Net Income to Return On Asset for China Telecom Corp is about 975,833,333,333 . At present, China Telecom'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 China Telecom by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for China Telecom'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.China Return On Asset vs. Net Income
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.
China Telecom |
| = | 30.45 B |
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.
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.
China Telecom |
| = | 0.0312 |
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.
China Return On Asset Comparison
China Telecom is currently under evaluation in return on asset category among its peers.
China Telecom Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in China Telecom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Telecom will eventually generate negative long term returns. The profitability progress is the general direction of China Telecom's change in net profit over the period of time. It can combine multiple indicators of China Telecom, 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 | 324.9 B | 341.1 B | |
| Operating Income | 37.1 B | 32.3 B | |
| Income Before Tax | 39.2 B | 28 B | |
| Total Other Income Expense Net | 2.6 B | 2.8 B | |
| Net Income | 30.4 B | 23.3 B | |
| Income Tax Expense | 9.2 B | 5.8 B | |
| Net Interest Income | -177 M | -185.8 M | |
| Interest Income | 2.4 B | 1.4 B | |
| Net Income From Continuing Ops | 30.4 B | 27.7 B |
China Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on China Telecom. 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 China Telecom 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 China Telecom's important profitability drivers and their relationship over time.
Use China Telecom 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 China Telecom 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 China Telecom will appreciate offsetting losses from the drop in the long position's value.China Telecom Pair Trading
China Telecom Corp Pair Trading Analysis
The ability to find closely correlated positions to China Telecom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Telecom 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 China Telecom - 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 China Telecom Corp to buy it.
The correlation of China Telecom 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 China Telecom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Telecom Corp 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 China Telecom 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 China Telecom position
In addition to having China Telecom 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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Recycling
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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 Recycling Theme or any other thematic opportunities.
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Other Information on Investing in China Stock
To fully project China Telecom's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of China Telecom Corp 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 China Telecom's income statement, its balance sheet, and the statement of cash flows.