Huadong Medicine Revenue vs. Operating Margin

000963 Stock   35.51  0.44  1.22%   
Based on the measurements of profitability obtained from Huadong Medicine's financial statements, Huadong Medicine Co 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 Huadong Medicine's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2002-06-30
Previous Quarter
10.4 B
Current Value
10.6 B
Quarterly Volatility
3.4 B
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Huadong Medicine profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Huadong Medicine to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Huadong Medicine Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Huadong Medicine's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Huadong Medicine Co 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 Huadong Medicine's value and its price as these two are different measures arrived at by different means. Investors typically determine if Huadong Medicine is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Huadong Medicine'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.

Huadong Medicine Operating Margin vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Huadong Medicine's current stock value. Our valuation model uses many indicators to compare Huadong Medicine value to that of its competitors to determine the firm's financial worth.
Huadong Medicine Co is the top company in revenue category among its peers. It also is number one stock in operating margin category among its peers . The ratio of Revenue to Operating Margin for Huadong Medicine Co is about  380,016,674,649 . At present, Huadong Medicine's Total Revenue is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Huadong Medicine by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Huadong Medicine's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Huadong Revenue vs. Competition

Huadong Medicine Co is the top company in revenue category among its peers. Market size based on revenue of Health Care industry is presently estimated at about 8.7 Trillion. Huadong Medicine adds roughly 40.62 Billion in revenue claiming only tiny portion of equities under Health Care industry.

Huadong Operating Margin vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Huadong Medicine

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
40.62 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.

Huadong Medicine

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.

Huadong Operating Margin Comparison

Huadong Medicine is currently under evaluation in operating margin category among its peers.

Huadong Medicine Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Huadong Medicine, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Huadong Medicine will eventually generate negative long term returns. The profitability progress is the general direction of Huadong Medicine's change in net profit over the period of time. It can combine multiple indicators of Huadong Medicine, 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
Operating Income3.8 BB
Income Before Tax3.5 B3.6 B
Net Income Applicable To Common Shares2.6 B2.8 B
Net Income2.8 BB
Income Tax Expense562.2 M590.4 M
Net Income From Continuing Ops2.8 B2.5 B
Total Other Income Expense Net-6.4 M-6.7 M
Net Interest Income-46.8 M-49.2 M
Interest Income94 M64 M
Change To Netincome261.1 M142.3 M

Huadong Profitability Driver Comparison

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

Use Huadong Medicine 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 Huadong Medicine 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 Huadong Medicine will appreciate offsetting losses from the drop in the long position's value.

Huadong Medicine Pair Trading

Huadong Medicine Co Pair Trading Analysis

The ability to find closely correlated positions to Huadong Medicine could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Huadong Medicine 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 Huadong Medicine - 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 Huadong Medicine Co to buy it.
The correlation of Huadong Medicine 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 Huadong Medicine moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Huadong Medicine 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 Huadong Medicine 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

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Other Information on Investing in Huadong Stock

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