China Mengniu Return On Asset vs. Cash And Equivalents
| CIADY Stock | USD 22.90 1.46 6.81% |
For China Mengniu profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Mengniu to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Mengniu Dairy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Mengniu's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Mengniu Dairy over time as well as its relative position and ranking within its peers.
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China Mengniu Dairy Cash And Equivalents vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining China Mengniu's current stock value. Our valuation model uses many indicators to compare China Mengniu value to that of its competitors to determine the firm's financial worth. China Mengniu Dairy is rated below average in return on asset category among its peers. It is number one stock in cash and equivalents category among its peers creating about 591,119,691,120 of Cash And Equivalents per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value China Mengniu by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for China Mengniu's Pink Sheet. 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 Cash And Equivalents vs. Return On Asset
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 Mengniu |
| = | 0.0259 |
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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
China Mengniu |
| = | 15.31 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
China Cash And Equivalents Comparison
China Mengniu is currently under evaluation in cash and equivalents category among its peers.
China Mengniu Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in China Mengniu, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Mengniu will eventually generate negative long term returns. The profitability progress is the general direction of China Mengniu's change in net profit over the period of time. It can combine multiple indicators of China Mengniu, 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.
China Mengniu Dairy Company Limited, an investment holding company, produces and distributes dairy products in the Peoples Republic of China and internationally. China Mengniu Dairy Company Limited was founded in 1999 and is based in Causeway Bay, Hong Kong. China Mengniu operates under Packaged Foods classification in the United States and is traded on OTC Exchange. It employs 44277 people.
China Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on China Mengniu. 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 Mengniu 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 Mengniu's important profitability drivers and their relationship over time.
Use China Mengniu 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 Mengniu 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 Mengniu will appreciate offsetting losses from the drop in the long position's value.China Mengniu Pair Trading
China Mengniu Dairy Pair Trading Analysis
The ability to find closely correlated positions to China Mengniu 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 Mengniu 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 Mengniu - 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 Mengniu Dairy to buy it.
The correlation of China Mengniu 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 Mengniu moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Mengniu Dairy 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 Mengniu 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 China Mengniu position
In addition to having China Mengniu 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 China Pink Sheet Analysis
When running China Mengniu's price analysis, check to measure China Mengniu'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 China Mengniu is operating at the current time. Most of China Mengniu's value examination focuses on studying past and present price action to predict the probability of China Mengniu's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move China Mengniu's price. Additionally, you may evaluate how the addition of China Mengniu to your portfolios can decrease your overall portfolio volatility.