Air China Return On Asset vs. Market Capitalization

601111 Stock   7.89  0.11  1.38%   
Based on the key profitability measurements obtained from Air China's financial statements, Air China 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 Air China's ability to earn profits and add value for shareholders.
For Air China profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Air China to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Air China Ltd utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Air China's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Air China 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 Air China's value and its price as these two are different measures arrived at by different means. Investors typically determine if Air China is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Air China'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.

Air China Market Capitalization vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Air China's current stock value. Our valuation model uses many indicators to compare Air China value to that of its competitors to determine the firm's financial worth.
Air China Ltd is number one stock in return on asset category among its peers. It also is number one stock in market capitalization category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Air China by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Air China'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.

Air Market Capitalization 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.

Air China

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0017
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.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

Air China

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
131.42 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

Air Market Capitalization vs Competition

Air China Ltd is number one stock in market capitalization category among its peers. Market capitalization of Industrials industry is presently estimated at about 11.63 Trillion. Air China claims roughly 131.42 Billion in market capitalization contributing just under 2% to equities under Industrials industry.
Capitalization  Workforce  Total debt  Revenue  Valuation

Air China Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Air China, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Air China will eventually generate negative long term returns. The profitability progress is the general direction of Air China's change in net profit over the period of time. It can combine multiple indicators of Air China, 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 Income380.2 M399.2 M
Net Loss-1.6 B-1.6 B
Income Before Tax-1.7 B-1.7 B
Total Other Income Expense Net-3.3 B-3.5 B
Net Loss-34.8 B-33 B
Net Loss-1 B-1.1 B
Income Tax Expense-633.3 M-601.6 M
Net Interest Income-6.4 B-6.7 B
Interest Income605 M635.3 M
Change To Netincome3.4 B4.1 B

Air Profitability Driver Comparison

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

Use Air China 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 Air China 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 Air China will appreciate offsetting losses from the drop in the long position's value.

Air China Pair Trading

Air China Ltd Pair Trading Analysis

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

In addition to having Air China 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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Run Trading Thematic Idea Now

Trading
Trading Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading theme has 61 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 Trading Theme or any other thematic opportunities.
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Other Information on Investing in Air Stock

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