Dongfeng Automobile Gross Profit vs. Net Income

600006 Stock   7.66  0.04  0.52%   
Based on the measurements of profitability obtained from Dongfeng Automobile's financial statements, Dongfeng Automobile Co 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 Dongfeng Automobile's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2002-03-31
Previous Quarter
-72.9 M
Current Value
-1.8 M
Quarterly Volatility
220.7 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Dongfeng Automobile profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dongfeng Automobile to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dongfeng Automobile Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dongfeng Automobile's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dongfeng Automobile Co 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 Dongfeng Automobile's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dongfeng Automobile is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dongfeng Automobile'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.

Dongfeng Automobile Net Income vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dongfeng Automobile's current stock value. Our valuation model uses many indicators to compare Dongfeng Automobile value to that of its competitors to determine the firm's financial worth.
Dongfeng Automobile Co is number one stock in gross profit category among its peers. It also is number one stock in net income category among its peers making up about  0.19  of Net Income per Gross Profit. The ratio of Gross Profit to Net Income for Dongfeng Automobile Co is roughly  5.32 . At present, Dongfeng Automobile's Gross Profit is projected to decrease 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 Dongfeng Automobile by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dongfeng Automobile'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.

Dongfeng Net Income vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Dongfeng Automobile

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.06 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.

Dongfeng Automobile

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
200.04 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.

Dongfeng Net Income Comparison

Dongfeng Automobile is currently under evaluation in net income category among its peers.

Dongfeng Automobile Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dongfeng Automobile, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dongfeng Automobile will eventually generate negative long term returns. The profitability progress is the general direction of Dongfeng Automobile's change in net profit over the period of time. It can combine multiple indicators of Dongfeng Automobile, 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 Income-474.4 M-450.7 M
Income Before Tax205.6 M337.4 M
Net Income Applicable To Common Shares256.6 M305.8 M
Net Income200 M299.7 M
Income Tax Expense-8.9 M-8.5 M
Net Income From Continuing Ops202.9 M325.8 M
Total Other Income Expense Net763.3 M533.8 M
Net Interest Income142.7 M74.8 M
Interest Income155.6 M92.8 M
Change To Netincome-222.8 M-234 M

Dongfeng Profitability Driver Comparison

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

Use Dongfeng Automobile 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 Dongfeng Automobile 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 Dongfeng Automobile will appreciate offsetting losses from the drop in the long position's value.

Dongfeng Automobile Pair Trading

Dongfeng Automobile Co Pair Trading Analysis

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

In addition to having Dongfeng Automobile 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 Railroads Thematic Idea Now

Railroads
Railroads Theme
Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. The Railroads theme has 38 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 Railroads Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in Dongfeng Stock

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