Digital China Total Debt vs. Cash Flow From Operations

000555 Stock   12.29  0.36  3.02%   
Based on the key profitability measurements obtained from Digital China's financial statements, Digital China Information 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 Digital China's ability to earn profits and add value for shareholders.
For Digital China profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Digital China to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Digital China Information utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Digital China's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Digital China Information 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 Digital China's value and its price as these two are different measures arrived at by different means. Investors typically determine if Digital China is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Digital 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.

Digital China Information Cash Flow From Operations vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Digital China's current stock value. Our valuation model uses many indicators to compare Digital China value to that of its competitors to determine the firm's financial worth.
Digital China Information is rated fifth in total debt category among its peers. It is number one stock in cash flow from operations category among its peers making about  1.28  of Cash Flow From Operations per Total Debt. Comparative valuation analysis is a catch-all model that can be used if you cannot value Digital China by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Digital 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.

Digital Total Debt vs. Competition

Digital China Information is rated fifth in total debt category among its peers. Total debt of Information Technology industry is presently estimated at about 3.14 Billion. Digital China holds roughly 183.46 Million in total debt claiming about 6% of equities under Information Technology industry.
Total debt  Valuation  Revenue  Capitalization  Workforce

Digital Cash Flow From Operations 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.

Digital China

Total Debt

 = 

Bonds

+

Notes

 = 
183.46 M
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.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.

Digital China

Operating Cash Flow

 = 

EBITDA

-

Taxes

 = 
234.93 M
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.

Digital Cash Flow From Operations Comparison

Digital China is currently under evaluation in cash flow from operations category among its peers.

Digital China Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Digital China, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Digital China will eventually generate negative long term returns. The profitability progress is the general direction of Digital China's change in net profit over the period of time. It can combine multiple indicators of Digital 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
Accumulated Other Comprehensive Income130.2 M140.2 M
Income Before Tax231.8 M223.5 M
Net Income Applicable To Common Shares237.5 M200.5 M
Net Income207.1 M202.1 M
Operating Income368.8 M389 M
Income Tax Expense-17.5 M-16.6 M
Net Interest Income-13.2 M-13.8 M
Interest Income19.9 M10.6 M
Net Income From Continuing Ops203.5 M311.6 M
Change To Netincome231 M198.3 M

Digital Profitability Driver Comparison

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

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

Digital China Pair Trading

Digital China Information Pair Trading Analysis

The ability to find closely correlated positions to Digital 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 Digital 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 Digital 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 Digital China Information to buy it.
The correlation of Digital 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 Digital China moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Digital China Information 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 Digital 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 Digital China position

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Other Information on Investing in Digital Stock

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