China Citic Total Debt vs. Return On Asset

601998 Stock   6.95  0.11  1.61%   
Based on the measurements of profitability obtained from China Citic's financial statements, China Citic Bank 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 China Citic's ability to earn profits and add value for shareholders.
For China Citic profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Citic to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Citic Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Citic's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Citic Bank 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 China Citic's value and its price as these two are different measures arrived at by different means. Investors typically determine if China Citic is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Citic'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.

China Citic Bank Return On Asset vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining China Citic's current stock value. Our valuation model uses many indicators to compare China Citic value to that of its competitors to determine the firm's financial worth.
China Citic Bank is the top company in total debt category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Total Debt to Return On Asset for China Citic Bank is about  Huge . Comparative valuation analysis is a catch-all model that can be used if you cannot value China Citic by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for China Citic'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.

China Total Debt vs. Competition

China Citic Bank is the top company in total debt category among its peers. Total debt of Financials industry is presently estimated at about 8.32 Trillion. China Citic totals roughly 8.32 Trillion in total debt claiming about 100% of equities under Financials industry.
Total debt  Workforce  Revenue  Valuation  Capitalization

China Return On Asset 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.

China Citic

Total Debt

 = 

Bonds

+

Notes

 = 
8.32 T
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.
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.

China Citic

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0075
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.

China Return On Asset Comparison

China Citic is currently under evaluation in return on asset category among its peers.

China Citic Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in China Citic, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Citic will eventually generate negative long term returns. The profitability progress is the general direction of China Citic's change in net profit over the period of time. It can combine multiple indicators of China Citic, 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 Income63.6 B66.8 B
Income Before Tax74.9 B45.7 B
Income Tax Expense10.5 B8.8 B
Net Income Applicable To Common Shares60.5 B37.5 B
Net Income67 B42.1 B
Net Income From Continuing Ops68.1 B55.9 B
Total Other Income Expense Net-1.1 B-1.2 B
Net Interest Income143.5 B141.7 B
Interest Income317.7 B298.6 B
Change To Netincome98.9 B81 B

China Profitability Driver Comparison

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

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

China Citic Pair Trading

China Citic Bank Pair Trading Analysis

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

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Other Information on Investing in China Stock

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