WuXi AppTec Return On Equity vs. Net Income
| WX8 Stock | EUR 5.70 0.30 5.56% |
For WuXi AppTec profitability analysis, we use financial ratios and fundamental drivers that measure the ability of WuXi AppTec to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well WuXi AppTec Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between WuXi AppTec's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of WuXi AppTec Co over time as well as its relative position and ranking within its peers.
WuXi |
WuXi AppTec Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining WuXi AppTec's current stock value. Our valuation model uses many indicators to compare WuXi AppTec value to that of its competitors to determine the firm's financial worth. WuXi AppTec Co is rated first in return on equity category among its peers. It is rated first in net income category among its peers making up about 23,456,766,171 of Net Income per Return On Equity. 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 WuXi AppTec's earnings, one of the primary drivers of an investment's value.WuXi Net Income 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.
WuXi AppTec |
| = | 0.22 |
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.
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.
WuXi AppTec |
| = | 5.1 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.
WuXi Net Income Comparison
WuXi AppTec is currently under evaluation in net income category among its peers.
WuXi AppTec Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in WuXi AppTec, profitability is also one of the essential criteria for including it into their portfolios because, without profit, WuXi AppTec will eventually generate negative long term returns. The profitability progress is the general direction of WuXi AppTec's change in net profit over the period of time. It can combine multiple indicators of WuXi AppTec, 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.
WuXi AppTec Co., Ltd., an investment holding company, provides research, development, and manufacturing services to discover, develop, and manufacture small molecule drugs, and cell and gene therapies in the Peoples Republic of China, rest of Asia, the United States, Europe, and internationally. WuXi AppTec Co., Ltd. was founded in 2000 and is headquartered in Shanghai, the Peoples Republic of China. WUXI APPTEC operates under Diagnostics Research classification in Germany and is traded on Frankfurt Stock Exchange. It employs 27272 people.
WuXi Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on WuXi AppTec. 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 WuXi AppTec 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 WuXi AppTec's important profitability drivers and their relationship over time.
Use WuXi AppTec 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 WuXi AppTec 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 WuXi AppTec will appreciate offsetting losses from the drop in the long position's value.WuXi AppTec Pair Trading
WuXi AppTec Co Pair Trading Analysis
The ability to find closely correlated positions to WuXi AppTec could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace WuXi AppTec 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 WuXi AppTec - 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 WuXi AppTec Co to buy it.
The correlation of WuXi AppTec 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 WuXi AppTec moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if WuXi AppTec 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 WuXi AppTec 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 WuXi AppTec position
In addition to having WuXi AppTec 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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Funds or Etfs that invest in fixed income securities issued by national government to finance government spending or to facilitate Federal Reserve monetary policies. The Government Funds theme has 47 constituents at this time.
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Other Information on Investing in WuXi Stock
To fully project WuXi AppTec's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of WuXi AppTec 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 WuXi AppTec's income statement, its balance sheet, and the statement of cash flows.