BYD Co EBITDA vs. Net Income

002594 Stock   284.65  1.85  0.65%   
Considering BYD Co's profitability and operating efficiency indicators, BYD Co Ltd 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 BYD Co's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
85.8 B
Current Value
90.1 B
Quarterly Volatility
27.9 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
For BYD Co profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BYD Co to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BYD Co Ltd utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BYD Co's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BYD Co Ltd 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 BYD Co's value and its price as these two are different measures arrived at by different means. Investors typically determine if BYD Co is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BYD Co'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.

BYD Co Net Income vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining BYD Co's current stock value. Our valuation model uses many indicators to compare BYD Co value to that of its competitors to determine the firm's financial worth.
BYD Co Ltd is number one stock in ebitda category among its peers. It also is number one stock in net income category among its peers making up about  0.35  of Net Income per EBITDA. The ratio of EBITDA to Net Income for BYD Co Ltd is roughly  2.86 . At present, BYD Co's EBITDA 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 BYD Co by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for BYD Co'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.

BYD Net Income vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

BYD Co

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
85.8 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
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.

BYD Co

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
30.04 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.

BYD Net Income Comparison

BYD Co is currently under evaluation in net income category among its peers.

BYD Co Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in BYD Co, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BYD Co will eventually generate negative long term returns. The profitability progress is the general direction of BYD Co's change in net profit over the period of time. It can combine multiple indicators of BYD Co, 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
Accumulated Other Comprehensive Income9.7 B7.1 B
Operating Income38.1 B40 B
Income Before Tax37.3 B39.1 B
Total Other Income Expense Net-834.5 M-876.2 M
Net Income30 B31.5 B
Income Tax Expense5.9 B6.2 B
Net Income From Continuing Ops31.3 B32.9 B
Net Income Applicable To Common Shares19.1 B20.1 B
Net Interest Income836.1 M877.9 M
Interest Income2.8 B2.9 B
Change To Netincome4.7 B4.7 B

BYD Profitability Driver Comparison

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

Use BYD Co 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 BYD Co 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 BYD Co will appreciate offsetting losses from the drop in the long position's value.

BYD Co Pair Trading

BYD Co Ltd Pair Trading Analysis

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

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