Cathay Chemical Return On Asset vs. Return On Equity
| 1713 Stock | TWD 50.40 0.90 1.82% |
For Cathay Chemical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cathay Chemical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cathay Chemical Works utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cathay Chemical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cathay Chemical Works over time as well as its relative position and ranking within its peers.
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Cathay Chemical Works Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cathay Chemical's current stock value. Our valuation model uses many indicators to compare Cathay Chemical value to that of its competitors to determine the firm's financial worth. Cathay Chemical Works is rated fifth in return on asset category among its peers. It is rated second in return on equity category among its peers reporting about 22.60 of Return On Equity per Return On Asset. 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 Cathay Chemical's earnings, one of the primary drivers of an investment's value.Cathay Return On Equity vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Cathay Chemical |
| = | 0.0045 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.
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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.
Cathay Return On Equity Comparison
Cathay Chemical is currently under evaluation in return on equity category among its peers.
Cathay Chemical Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cathay Chemical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cathay Chemical will eventually generate negative long term returns. The profitability progress is the general direction of Cathay Chemical's change in net profit over the period of time. It can combine multiple indicators of Cathay Chemical, 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.
Cathay Chemical Works Inc. imports, manufactures, and sells specialty and fine chemicals under the CATHAY brand in Taiwan. Cathay Chemical Works Inc. was founded in 1962 and is based in Taipei, Taiwan. CATHAY CHEMICAL operates under Specialty Chemicals classification in Taiwan and is traded on Taiwan Stock Exchange. It employs 95 people.
Cathay Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cathay Chemical. 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 Cathay Chemical 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 Cathay Chemical's important profitability drivers and their relationship over time.
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Additional Tools for Cathay Stock Analysis
When running Cathay Chemical's price analysis, check to measure Cathay Chemical'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 Cathay Chemical is operating at the current time. Most of Cathay Chemical's value examination focuses on studying past and present price action to predict the probability of Cathay Chemical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cathay Chemical's price. Additionally, you may evaluate how the addition of Cathay Chemical to your portfolios can decrease your overall portfolio volatility.