China State Cash And Equivalents vs. Operating Margin

CCOHF Stock  USD 1.05  0.00  0.00%   
Based on the measurements of profitability obtained from China State's financial statements, China State Construction 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 China State's ability to earn profits and add value for shareholders.
For China State profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China State to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China State Construction utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China State's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China State Construction 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 China State's value and its price as these two are different measures arrived at by different means. Investors typically determine if China State is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China State'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.

China State Construction Operating Margin vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining China State's current stock value. Our valuation model uses many indicators to compare China State value to that of its competitors to determine the firm's financial worth.
China State Construction is number one stock in cash and equivalents category among its peers. It also is number one stock in operating margin category among its peers . The ratio of Cash And Equivalents to Operating Margin for China State Construction is about  259,555,555,556 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the China State's earnings, one of the primary drivers of an investment's value.

China Operating Margin vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

China State

Cash

 = 

Bank Deposits

+

Liquidities

 = 
29.2 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

China State

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.11 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

China Operating Margin Comparison

China State is currently under evaluation in operating margin category among its peers.

China State Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in China State, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China State will eventually generate negative long term returns. The profitability progress is the general direction of China State's change in net profit over the period of time. It can combine multiple indicators of China State, 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.
China State Construction International Holdings Limited, an investment holding company, engages in the construction business in Hong Kong, Mainland China, Macau, and internationally. China State Construction International Holdings Limited is a subsidiary of China Overseas Holdings Limited. China State is traded on OTC Exchange in the United States.

China Profitability Driver Comparison

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

Use China State 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 State 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 State will appreciate offsetting losses from the drop in the long position's value.

China State Pair Trading

China State Construction Pair Trading Analysis

The ability to find closely correlated positions to China State 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 State 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 State - 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 State Construction to buy it.
The correlation of China State 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 State moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China State Construction 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 State 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 China State position

In addition to having China State 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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Impulse
Impulse Theme
Large corporations operating in retail, broadcasting, energy, airlines and telecom sectors. The Impulse theme has 49 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 Impulse Theme or any other thematic opportunities.
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Other Information on Investing in China Pink Sheet

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