Guangdong Advertising Gross Profit vs. Cash Flow From Operations

002400 Stock   9.13  0.25  2.82%   
Considering the key profitability indicators obtained from Guangdong Advertising's historical financial statements, Guangdong Advertising Co may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Guangdong Advertising's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2010-03-31
Previous Quarter
264.3 M
Current Value
257.5 M
Quarterly Volatility
171.4 M
 
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Covid
For Guangdong Advertising profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Guangdong Advertising to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Guangdong Advertising Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Guangdong Advertising's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Guangdong Advertising 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 Guangdong Advertising's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guangdong Advertising is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guangdong Advertising'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.

Guangdong Advertising Cash Flow From Operations vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Guangdong Advertising's current stock value. Our valuation model uses many indicators to compare Guangdong Advertising value to that of its competitors to determine the firm's financial worth.
Guangdong Advertising Co is number one stock in gross profit category among its peers. It also is number one stock in cash flow from operations category among its peers making about  0.34  of Cash Flow From Operations per Gross Profit. The ratio of Gross Profit to Cash Flow From Operations for Guangdong Advertising Co is roughly  2.93 . At present, Guangdong Advertising's Gross Profit is projected to decrease 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 Guangdong Advertising by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Guangdong Advertising'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.

Guangdong Cash Flow From Operations vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Guangdong Advertising

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.32 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.

Guangdong Advertising

Operating Cash Flow

 = 

EBITDA

-

Taxes

 = 
448.23 M
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.

Guangdong Cash Flow From Operations Comparison

Guangdong Advertising is currently under evaluation in cash flow from operations category among its peers.

Guangdong Advertising Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Guangdong Advertising, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Guangdong Advertising will eventually generate negative long term returns. The profitability progress is the general direction of Guangdong Advertising's change in net profit over the period of time. It can combine multiple indicators of Guangdong Advertising, 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 Income269 M416 M
Income Before Tax190 M181 M
Net Income Applicable To Common Shares165.5 M93.9 M
Net Income153.1 M100.1 M
Income Tax Expense45.8 M78.6 M
Net Income From Continuing Ops152.2 M115.4 M
Total Other Income Expense Net-199.6 M-189.6 M
Net Interest Income-22.6 M-23.8 M
Interest Income20.4 M15 M
Change To Netincome242.7 M230.5 M

Guangdong Profitability Driver Comparison

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

Use Guangdong Advertising 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 Guangdong Advertising 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 Guangdong Advertising will appreciate offsetting losses from the drop in the long position's value.

Guangdong Advertising Pair Trading

Guangdong Advertising Co Pair Trading Analysis

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

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Other Information on Investing in Guangdong Stock

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