Chongqing Road Return On Equity vs. Gross Profit

600106 Stock   6.56  0.06  0.91%   
Based on the measurements of profitability obtained from Chongqing Road's financial statements, Chongqing Road Bridge may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Chongqing Road's ability to earn profits and add value for shareholders.
For Chongqing Road profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chongqing Road to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chongqing Road Bridge utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chongqing Road's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chongqing Road Bridge 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 Chongqing Road's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chongqing Road is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chongqing Road'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.

Chongqing Road Bridge Gross Profit vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Chongqing Road's current stock value. Our valuation model uses many indicators to compare Chongqing Road value to that of its competitors to determine the firm's financial worth.
Chongqing Road Bridge is number one stock in return on equity category among its peers. It also is number one stock in gross profit category among its peers fabricating about  3,141,364,342  of Gross Profit per Return On Equity. At present, Chongqing Road'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 Chongqing Road by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chongqing Road'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.

Chongqing Gross Profit vs. Return On Equity

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.

Chongqing Road

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0357
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.
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.

Chongqing Road

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
112.15 M
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.

Chongqing Gross Profit Comparison

Chongqing Road is currently under evaluation in gross profit category among its peers.

Chongqing Road Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chongqing Road, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chongqing Road will eventually generate negative long term returns. The profitability progress is the general direction of Chongqing Road's change in net profit over the period of time. It can combine multiple indicators of Chongqing Road, 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 Income73.5 M69.8 M
Income Before Tax230.6 M215 M
Net Income Applicable To Common Shares233.3 M192.9 M
Net Income211.5 M194.5 M
Income Tax Expense23.8 M20.5 M
Net Income From Continuing Ops211.5 M193.1 M
Total Other Income Expense Net97.4 M73.4 M
Net Interest Income-17.2 M-18.1 M
Interest Income60 M40 M
Change To Netincome-86.1 M-90.4 M

Chongqing Profitability Driver Comparison

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

Use Chongqing Road 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 Chongqing Road 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 Chongqing Road will appreciate offsetting losses from the drop in the long position's value.

Chongqing Road Pair Trading

Chongqing Road Bridge Pair Trading Analysis

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

In addition to having Chongqing Road 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.

Did You Try This Idea?

Run Convertibles Funds Thematic Idea Now

Convertibles Funds
Convertibles Funds Theme
Funds or Etfs that invest in debt that is expected to be converted into a predetermined amount of the company equity at some future date. The Convertibles Funds theme has 13 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Convertibles Funds Theme or any other thematic opportunities.
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Other Information on Investing in Chongqing Stock

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