China Water Operating Margin vs. Return On Asset
| CWAFFDelisted Stock | USD 0.71 0.00 0.00% |
For China Water profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Water to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Water Affairs utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Water's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Water Affairs over time as well as its relative position and ranking within its peers.
China |
China Water Affairs Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining China Water's current stock value. Our valuation model uses many indicators to compare China Water value to that of its competitors to determine the firm's financial worth. China Water Affairs is number one stock in operating margin category among its peers. It also is number one stock in return on asset category among its peers reporting about 0.15 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for China Water Affairs is roughly 6.61 . 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 Water's earnings, one of the primary drivers of an investment's value.China Return On Asset vs. Operating Margin
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 Water |
| = | 0.30 % |
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.
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 Water |
| = | 0.0453 |
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 Water is currently under evaluation in return on asset category among its peers.
China Water Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in China Water, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Water will eventually generate negative long term returns. The profitability progress is the general direction of China Water's change in net profit over the period of time. It can combine multiple indicators of China Water, 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 Water Affairs Group Limited, an investment holding company, engages in the water supply, environmental protection, and property businesses in the Peoples Republic of China. China Water Affairs Group Limited is headquartered in Wan Chai, Hong Kong. China Water operates under UtilitiesRegulated Water classification in the United States and is traded on OTC Exchange. It employs 11000 people.
China Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on China Water. 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 Water 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 Water's important profitability drivers and their relationship over time.
Use China Water 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 Water 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 Water will appreciate offsetting losses from the drop in the long position's value.China Water Pair Trading
China Water Affairs Pair Trading Analysis
The ability to find closely correlated positions to China Water 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 Water 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 Water - 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 Water Affairs to buy it.
The correlation of China Water 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 Water moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Water Affairs 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 Water 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 Water position
In addition to having China Water 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 Farming Thematic Idea Now
Farming
Companies producing farming products and providing services for farmers. The Farming theme has 44 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 Farming Theme or any other thematic opportunities.
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Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Consideration for investing in China Pink Sheet
If you are still planning to invest in China Water Affairs check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the China Water's history and understand the potential risks before investing.
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