Industrial Cash Flow From Operations vs. Net Income
| 601398 Stock | 6.92 0.01 0.14% |
For Industrial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Industrial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Industrial and Commercial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Industrial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Industrial and Commercial over time as well as its relative position and ranking within its peers.
Industrial |
Industrial and Commercial Net Income vs. Cash Flow From Operations Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Industrial's current stock value. Our valuation model uses many indicators to compare Industrial value to that of its competitors to determine the firm's financial worth. Industrial and Commercial is rated below average in cash flow from operations category among its peers. It also is rated below average in net income category among its peers making up about 0.26 of Net Income per Cash Flow From Operations. The ratio of Cash Flow From Operations to Net Income for Industrial and Commercial is roughly 3.89 . At present, Industrial'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 Industrial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Industrial'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.Industrial Net Income vs. Cash Flow From Operations
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.
Industrial |
| = | 1.42 T |
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.
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.
Industrial |
| = | 363.99 B |
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.
Industrial Net Income Comparison
Industrial is rated below average in net income category among its peers.
Industrial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Industrial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Industrial will eventually generate negative long term returns. The profitability progress is the general direction of Industrial's change in net profit over the period of time. It can combine multiple indicators of Industrial, 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 Reported | Projected for Next Year | ||
| Operating Income | 447.7 B | 407.1 B | |
| Net Income From Continuing Ops | 365.1 B | 348.4 B | |
| Income Before Tax | 422 B | 429.8 B | |
| Total Other Income Expense Net | 2.9 B | 3 B | |
| Net Income Applicable To Common Shares | 414.6 B | 336.5 B | |
| Net Income | 364 B | 347.1 B | |
| Income Tax Expense | 55.4 B | 61 B | |
| Net Interest Income | 655 B | 668.2 B | |
| Interest Income | 1.4 T | 1.2 T | |
| Change To Netincome | -109.8 B | -104.3 B |
Industrial Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Industrial. 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 Industrial 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 Industrial's important profitability drivers and their relationship over time.
Use Industrial 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 Industrial 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 Industrial will appreciate offsetting losses from the drop in the long position's value.Industrial Pair Trading
Industrial and Commercial Pair Trading Analysis
The ability to find closely correlated positions to Industrial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Industrial 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 Industrial - 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 Industrial and Commercial to buy it.
The correlation of Industrial 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 Industrial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Industrial and Commercial 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 Industrial 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 Industrial position
In addition to having Industrial 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 Communication Thematic Idea Now
Communication
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Communication 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 Communication Theme or any other thematic opportunities.
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Other Information on Investing in Industrial Stock
To fully project Industrial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Industrial and Commercial 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 Industrial's income statement, its balance sheet, and the statement of cash flows.