Lepu Medical Return On Equity vs. Return On Asset

300003 Stock   11.88  0.03  0.25%   
Taking into consideration Lepu Medical's profitability measurements, Lepu Medical Tech 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 Lepu Medical's ability to earn profits and add value for shareholders.
For Lepu Medical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lepu Medical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lepu Medical Tech utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lepu Medical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lepu Medical Tech over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Please note, there is a significant difference between Lepu Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lepu Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lepu Medical'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.

Lepu Medical Tech Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lepu Medical's current stock value. Our valuation model uses many indicators to compare Lepu Medical value to that of its competitors to determine the firm's financial worth.
Lepu Medical Tech is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers reporting about  0.62  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Lepu Medical Tech is roughly  1.62 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lepu Medical by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lepu Medical'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.

Lepu Return On Asset 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.

Lepu Medical

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0385
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.
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.

Lepu Medical

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0237
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.

Lepu Return On Asset Comparison

Lepu Medical is rated fifth in return on asset category among its peers.

Lepu Medical Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lepu Medical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lepu Medical will eventually generate negative long term returns. The profitability progress is the general direction of Lepu Medical's change in net profit over the period of time. It can combine multiple indicators of Lepu Medical, 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 Income1.8 B1.3 B
Income Before Tax1.6 B1.2 B
Net Income Applicable To Common SharesB2.1 B
Net Income1.3 BB
Income Tax Expense420.6 M441.6 M
Net Income From Continuing Ops1.3 B1.5 B
Total Other Income Expense Net128.8 M135.2 M
Net Interest Income-59.6 M-62.5 M
Interest Income115.3 M60.6 M
Change To Netincome780.8 M819.8 M

Lepu Profitability Driver Comparison

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

Use Lepu Medical 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 Lepu Medical 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 Lepu Medical will appreciate offsetting losses from the drop in the long position's value.

Lepu Medical Pair Trading

Lepu Medical Tech Pair Trading Analysis

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

In addition to having Lepu Medical 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 Giant Impact Thematic Idea Now

Giant Impact
Giant Impact Theme
An experimental equal-weighted decomposition of large high potential stocks based on Macroaxis scoring framework. The Giant Impact theme has 44 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 Giant Impact Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in Lepu Stock

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