Lihtai Construction Price To Sales vs. Profit Margin
5520 Stock | TWD 81.10 0.60 0.73% |
For Lihtai Construction profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lihtai Construction to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lihtai Construction Enterprise utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lihtai Construction's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lihtai Construction Enterprise over time as well as its relative position and ranking within its peers.
Lihtai |
Lihtai Construction Profit Margin vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lihtai Construction's current stock value. Our valuation model uses many indicators to compare Lihtai Construction value to that of its competitors to determine the firm's financial worth. Lihtai Construction Enterprise is number one stock in price to sales category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.11 of Profit Margin per Price To Sales. The ratio of Price To Sales to Profit Margin for Lihtai Construction Enterprise is roughly 9.10 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lihtai Construction's earnings, one of the primary drivers of an investment's value.Lihtai Profit Margin vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Lihtai Construction |
| = | 1.02 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Lihtai Construction |
| = | 0.11 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Lihtai Profit Margin Comparison
Lihtai Construction is currently under evaluation in profit margin category among its peers.
Lihtai Construction Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lihtai Construction, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lihtai Construction will eventually generate negative long term returns. The profitability progress is the general direction of Lihtai Construction's change in net profit over the period of time. It can combine multiple indicators of Lihtai Construction, 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.
Lih Tai Construction Enterprise Co., Ltd. manufactures and sells ordinary, high-strength, and high performance concrete products. The company was founded in 1976 and is based in Taipei City, Taiwan. LITAI ENTERPRISE is traded on Taiwan OTC Exchange in Taiwan.
Lihtai Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lihtai Construction. 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 Lihtai Construction 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 Lihtai Construction's important profitability drivers and their relationship over time.
Use Lihtai Construction 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 Lihtai Construction 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 Lihtai Construction will appreciate offsetting losses from the drop in the long position's value.Lihtai Construction Pair Trading
Lihtai Construction Enterprise Pair Trading Analysis
The ability to find closely correlated positions to Lihtai Construction could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lihtai Construction 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 Lihtai Construction - 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 Lihtai Construction Enterprise to buy it.
The correlation of Lihtai Construction 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 Lihtai Construction moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lihtai Construction 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 Lihtai Construction 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.Use Investing Themes to Complement your Lihtai Construction position
In addition to having Lihtai Construction 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?
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Additional Tools for Lihtai Stock Analysis
When running Lihtai Construction's price analysis, check to measure Lihtai Construction's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lihtai Construction is operating at the current time. Most of Lihtai Construction's value examination focuses on studying past and present price action to predict the probability of Lihtai Construction's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lihtai Construction's price. Additionally, you may evaluate how the addition of Lihtai Construction to your portfolios can decrease your overall portfolio volatility.