Color Star Return On Equity vs. Gross Profit

ADD Stock  USD 3.84  0.10  2.54%   
Considering Color Star's profitability and operating efficiency indicators, Color Star Technology 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 Color Star's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(1.45)
Current Value
2.21643002
Quarterly Volatility
7.06592267
 
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Yuan Drop
 
Covid
At present, Color Star's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's EV To Sales is expected to grow to about 41.1 K, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.64. At present, Color Star's Change To Netincome is projected to increase significantly based on the last few years of reporting. The current year's Net Income Per E B T is expected to grow to 0.88, whereas Operating Income is projected to grow to (25.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.05950.2957
Way Down
Slightly volatile
For Color Star profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Color Star to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Color Star Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Color Star's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Color Star Technology over time as well as its relative position and ranking within its peers.
  
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Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Color Star. If investors know Color will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Color Star listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(71.00)
Revenue Per Share
0.074
Quarterly Revenue Growth
3.047
Return On Assets
(0.59)
Return On Equity
(1.24)
The market value of Color Star Technology is measured differently than its book value, which is the value of Color that is recorded on the company's balance sheet. Investors also form their own opinion of Color Star's value that differs from its market value or its book value, called intrinsic value, which is Color Star's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Color Star's market value can be influenced by many factors that don't directly affect Color Star's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Color Star's value and its price as these two are different measures arrived at by different means. Investors typically determine if Color Star is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Color Star'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.

Color Star Technology Gross Profit vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Color Star's current stock value. Our valuation model uses many indicators to compare Color Star value to that of its competitors to determine the firm's financial worth.
Color Star Technology is rated below average in return on equity category among its peers. It is rated third in gross profit category among its peers . At present, Color Star's Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Color Star by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Color 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.

Color Star

Return On Equity

 = 

Net Income

Total Equity

 = 
-1.24
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.

Color Star

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
7.97 M
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.

Color Gross Profit Comparison

Color Star is currently under evaluation in gross profit category among its peers.

Color Star Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Color Star, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Color Star will eventually generate negative long term returns. The profitability progress is the general direction of Color Star's change in net profit over the period of time. It can combine multiple indicators of Color Star, 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
Accumulated Other Comprehensive Income-9.8 K-9.3 K
Operating Income-27 M-25.7 M
Net Loss-26.9 M-25.5 M
Income Before Tax-26.9 M-25.5 M
Total Other Income Expense Net143.2 K150.4 K
Income Tax Expense333.3 K316.7 K
Net Loss-69.5 M-66 M
Net Interest Income-190.1 K-199.6 K
Net Loss-26.9 M-28.2 M
Change To Netincome65.1 M68.4 M
Net Loss(0.71)(0.57)
Income Quality 0.10  0.10 
Net Income Per E B T 0.77  0.88 

Color Profitability Driver Comparison

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

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Use Investing Themes to Complement your Color Star position

In addition to having Color Star 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.

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Raw Materials
Raw Materials Theme
Companies that are involved with the development and processing of raw materials such as silver or forestry. The Raw Materials theme has 15 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 Raw Materials Theme or any other thematic opportunities.
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When determining whether Color Star Technology is a strong investment it is important to analyze Color Star's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Color Star's future performance. For an informed investment choice regarding Color Stock, refer to the following important reports:
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You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
To fully project Color Star's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Color Star Technology 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 Color Star's income statement, its balance sheet, and the statement of cash flows.
Potential Color Star investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Color Star investors may work on each financial statement separately, they are all related. The changes in Color Star's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Color Star'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.