Hong Yi Cash And Equivalents vs. Operating Margin

1452 Stock  TWD 15.75  0.15  0.94%   
Considering the key profitability indicators obtained from Hong Yi's historical financial statements, Hong Yi Fiber may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Hong Yi's ability to earn profits and add value for shareholders.
For Hong Yi profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hong Yi to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hong Yi Fiber utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hong Yi's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hong Yi Fiber 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 Hong Yi's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hong Yi is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hong Yi'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.

Hong Yi Fiber Operating Margin vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hong Yi's current stock value. Our valuation model uses many indicators to compare Hong Yi value to that of its competitors to determine the firm's financial worth.
Hong Yi Fiber is rated third in cash and equivalents category among its peers. It is number one stock in operating margin category among its peers . The ratio of Cash And Equivalents to Operating Margin for Hong Yi Fiber is about  12,431,842,966 . 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 Hong Yi's earnings, one of the primary drivers of an investment's value.

Hong Operating Margin vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Hong Yi

Cash

 = 

Bank Deposits

+

Liquidities

 = 
1.14 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
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.

Hong Yi

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.09 %
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.

Hong Operating Margin Comparison

Hong Yi is currently under evaluation in operating margin category among its peers.

Hong Yi Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hong Yi, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hong Yi will eventually generate negative long term returns. The profitability progress is the general direction of Hong Yi's change in net profit over the period of time. It can combine multiple indicators of Hong Yi, 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.
Co., Ltd. manufactures and sells polyester textured yarns in Taiwan. The company was founded in 1968 and is based in Taipei City, Taiwan. HONG YI operates under Textile Manufacturing classification in Taiwan and is traded on Taiwan Stock Exchange.

Hong Profitability Driver Comparison

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

Use Hong Yi 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 Hong Yi 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 Hong Yi will appreciate offsetting losses from the drop in the long position's value.

Hong Yi Pair Trading

Hong Yi Fiber Pair Trading Analysis

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

In addition to having Hong Yi 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.

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Financials ETFs
Financials ETFs Theme
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Additional Tools for Hong Stock Analysis

When running Hong Yi's price analysis, check to measure Hong Yi's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hong Yi is operating at the current time. Most of Hong Yi's value examination focuses on studying past and present price action to predict the probability of Hong Yi's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hong Yi's price. Additionally, you may evaluate how the addition of Hong Yi to your portfolios can decrease your overall portfolio volatility.