Reading International Net Income vs. Return On Equity
| RDI Stock | USD 1.51 0.05 3.42% |
Net Loss | First Reported 1989-06-30 | Previous Quarter -9.3 M | Current Value -6.9 M | Quarterly Volatility 9.6 M |
For Reading International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reading International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reading International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reading International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reading International over time as well as its relative position and ranking within its peers.
Reading |
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 Reading International. If investors know Reading 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 Reading International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.29) | Earnings Share (1.88) | Revenue Per Share 9.128 | Quarterly Revenue Growth (0.28) | Return On Assets (0.02) |
The market value of Reading International is measured differently than its book value, which is the value of Reading that is recorded on the company's balance sheet. Investors also form their own opinion of Reading International's value that differs from its market value or its book value, called intrinsic value, which is Reading International'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 Reading International's market value can be influenced by many factors that don't directly affect Reading International'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 Reading International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Reading International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Reading International'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.
Reading International Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Reading International's current stock value. Our valuation model uses many indicators to compare Reading International value to that of its competitors to determine the firm's financial worth. Reading International is rated second in net income category among its peers. It is rated below average in return on equity category among its peers . The last year's value of Net Loss was reported at (30.67 Million). 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 Reading International's earnings, one of the primary drivers of an investment's value.Reading Return On Equity 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.
Reading International |
| = | (30.67 M) |
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 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.
Reading International |
| = | -1.4 |
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.
Reading Return On Equity Comparison
Reading International is currently under evaluation in return on equity category among its peers.
Reading International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Reading International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reading International will eventually generate negative long term returns. The profitability progress is the general direction of Reading International's change in net profit over the period of time. It can combine multiple indicators of Reading International, 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 | -2.7 M | -2.5 M | |
| Operating Income | -12 M | -12.6 M | |
| Income Before Tax | -30.6 M | -29.1 M | |
| Total Other Income Expense Net | -18.6 M | -17.6 M | |
| Net Loss | -30.7 M | -29.1 M | |
| Income Tax Expense | 590 K | 560.5 K | |
| Net Income Applicable To Common Shares | 28.7 M | 30.2 M | |
| Net Loss | -31.2 M | -29.6 M | |
| Non Operating Income Net Other | 110.7 M | 116.2 M | |
| Interest Income | 8.2 M | 5.7 M | |
| Net Interest Income | -19.4 M | -18.4 M | |
| Change To Netincome | -82.3 M | -78.2 M | |
| Net Loss | (1.38) | (1.31) | |
| Income Quality | 0.32 | 0.30 | |
| Net Income Per E B T | 1.00 | 1.05 |
Reading Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Reading International. 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 Reading International 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 Reading International's important profitability drivers and their relationship over time.
Use Reading International 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 Reading International 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 Reading International will appreciate offsetting losses from the drop in the long position's value.Reading International Pair Trading
Reading International Pair Trading Analysis
The ability to find closely correlated positions to Reading International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Reading International 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 Reading International - 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 Reading International to buy it.
The correlation of Reading International 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 Reading International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Reading International 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 Reading International 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 Reading International position
In addition to having Reading International 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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Check out Your Equity Center. For more detail on how to invest in Reading Stock please use our How to Invest in Reading International guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project Reading International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Reading International 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 Reading International's income statement, its balance sheet, and the statement of cash flows.