China Railway Total Debt vs. Return On Asset

601186 Stock   9.32  0.02  0.22%   
Based on the key profitability measurements obtained from China Railway's financial statements, China Railway Construction may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess China Railway's ability to earn profits and add value for shareholders.
For China Railway profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Railway to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Railway Construction utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Railway's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Railway Construction 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 China Railway's value and its price as these two are different measures arrived at by different means. Investors typically determine if China Railway is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Railway'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.

China Railway Constr Return On Asset vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining China Railway's current stock value. Our valuation model uses many indicators to compare China Railway value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.15601319600599600722301059002632000820601186 -0.15-0.10-0.0500.05 0200B400B600B800B1T1.2T1.4T
China Railway Construction is the top company in total debt category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Total Debt to Return On Asset for China Railway Construction is about  5,147,154,591,195 . Comparative valuation analysis is a catch-all model that can be used if you cannot value China Railway by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for China Railway'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.

China Total Debt vs. Competition

China Railway Construction is the top company in total debt category among its peers. Total debt of Industrials industry is presently estimated at about 16.08 Trillion. China Railway maintains roughly 81.84 Billion in total debt contributing less than 1% to equities under Industrials industry.
JavaScript chart by amCharts 3.21.15Others301059600722600599601319601186
Total debt  Valuation  Workforce  Revenue  Capitalization

China Return On Asset vs. Total Debt

Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

China Railway

Total Debt

 = 

Bonds

+

Notes

 = 
81.84 B
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
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.

China Railway

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0159
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.

China Return On Asset Comparison

China Railway is currently under evaluation in return on asset category among its peers.

China Railway Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in China Railway, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Railway will eventually generate negative long term returns. The profitability progress is the general direction of China Railway's change in net profit over the period of time. It can combine multiple indicators of China Railway, 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 Income57.4 B60.3 B
Income Before Tax38.8 B40.8 B
Income Tax Expense6.7 BB
Net Income Applicable To Common Shares27.5 B14.4 B
Net Income26.1 B16 B
Net Income From Continuing Ops32.3 B25.3 B
Total Other Income Expense Net-3.7 B-3.9 B
Net Interest Income-5.5 B-5.8 B
Interest Income4.2 BB
Change To Netincome18.9 B11.6 B

China Profitability Driver Comparison

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

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

China Railway Pair Trading

China Railway Construction Pair Trading Analysis

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

In addition to having China Railway 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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Disruptive Technologies
Disruptive Technologies Theme
New or established technology companies and funds across multiple sectors that are involved in development or marketing of products or services that experience disruptive trends and that are at the forefront of discussions on Wall Street. The Disruptive Technologies theme has 64 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 Disruptive Technologies Theme or any other thematic opportunities.
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Other Information on Investing in China Stock

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

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