Royal Orchid Net Income vs. Return On Asset

ROHLTD Stock   356.40  4.45  1.23%   
Based on the measurements of profitability obtained from Royal Orchid's financial statements, Royal Orchid Hotels 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 Royal Orchid's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2012-06-30
Previous Quarter
88 M
Current Value
75 M
Quarterly Volatility
105 M
 
Yuan Drop
 
Covid
For Royal Orchid profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Royal Orchid to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Royal Orchid Hotels utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Royal Orchid's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Royal Orchid Hotels 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 Royal Orchid's value and its price as these two are different measures arrived at by different means. Investors typically determine if Royal Orchid is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Royal Orchid'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.

Royal Orchid Hotels Return On Asset vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Royal Orchid's current stock value. Our valuation model uses many indicators to compare Royal Orchid value to that of its competitors to determine the firm's financial worth.
Royal Orchid Hotels is currently regarded as top stock in net income category among its peers. It also is currently regarded as top stock in return on asset category among its peers . The ratio of Net Income to Return On Asset for Royal Orchid Hotels is about  4,680,540,541 . At present, Royal Orchid's Net Income is projected to increase 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 Royal Orchid by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Royal Orchid'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.

Royal Return On Asset vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Royal Orchid

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
484.9 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.

Royal Orchid

Return On Asset

 = 

Net Income

Total Assets

 = 
0.1
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.

Royal Return On Asset Comparison

Royal Orchid is currently under evaluation in return on asset category among its peers.

Royal Orchid Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Royal Orchid, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Royal Orchid will eventually generate negative long term returns. The profitability progress is the general direction of Royal Orchid's change in net profit over the period of time. It can combine multiple indicators of Royal Orchid, 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
Accumulated Other Comprehensive Income215.5 M226.2 M
Operating Income1.6 B1.7 B
Income Before Tax570.4 M598.9 M
Total Other Income Expense Net-1 B-989.5 M
Net Income484.9 M509.1 M
Income Tax Expense96.8 M101.6 M
Net Income From Continuing Ops508.2 M533.6 M
Net Income Applicable To Common Shares540.8 M567.8 M
Interest Income184.6 M158.5 M
Net Interest Income-182.6 M-191.7 M
Change To Netincome122.4 M93.3 M

Royal Profitability Driver Comparison

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

Use Royal Orchid 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 Royal Orchid 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 Royal Orchid will appreciate offsetting losses from the drop in the long position's value.

Royal Orchid Pair Trading

Royal Orchid Hotels Pair Trading Analysis

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

In addition to having Royal Orchid 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 Chemicals Thematic Idea Now

Chemicals
Chemicals Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Chemicals 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 Chemicals Theme or any other thematic opportunities.
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Other Information on Investing in Royal Stock

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