Jerash Holdings Return On Equity vs. Profit Margin

JRSH Stock  USD 3.46  0.02  0.58%   
Based on Jerash Holdings' profitability indicators, Jerash Holdings 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 Jerash Holdings' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.03)
Current Value
(0.03)
Quarterly Volatility
0.28908627
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, Jerash Holdings' Days Sales Outstanding is increasing as compared to previous years. The Jerash Holdings' current Days Of Sales Outstanding is estimated to increase to 18.21, while Price To Sales Ratio is projected to decrease to 0.31. As of now, Jerash Holdings' Income Tax Expense is increasing as compared to previous years. The Jerash Holdings' current Non Operating Income Net Other is estimated to increase to about 527.7 K, while Accumulated Other Comprehensive Income is forecasted to increase to (74.6 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.1442
Way Up
Very volatile
For Jerash Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Jerash Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Jerash Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Jerash Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Jerash Holdings over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
For more detail on how to invest in Jerash Stock please use our How to Invest in Jerash Holdings guide.
Is Apparel, Accessories & Luxury Goods space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Jerash Holdings. If investors know Jerash will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Jerash Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.74)
Earnings Share
(0.29)
Revenue Per Share
10.036
Quarterly Revenue Growth
0.178
Return On Assets
(0.02)
The market value of Jerash Holdings is measured differently than its book value, which is the value of Jerash that is recorded on the company's balance sheet. Investors also form their own opinion of Jerash Holdings' value that differs from its market value or its book value, called intrinsic value, which is Jerash Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Jerash Holdings' market value can be influenced by many factors that don't directly affect Jerash Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Jerash Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Jerash Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jerash Holdings' 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.

Jerash Holdings Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Jerash Holdings's current stock value. Our valuation model uses many indicators to compare Jerash Holdings value to that of its competitors to determine the firm's financial worth.
Jerash Holdings is rated below average in return on equity category among its peers. It also is rated below average in profit margin category among its peers . As of now, Jerash Holdings' Return On Equity is decreasing as compared to previous years. 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 Jerash Holdings' earnings, one of the primary drivers of an investment's value.

Jerash Holdings' Earnings Breakdown by Geography

Jerash Profit Margin vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Jerash Holdings

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.0595
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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.

Jerash Holdings

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.03) %
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.

Jerash Profit Margin Comparison

Jerash Holdings is currently under evaluation in profit margin category among its peers.

Jerash Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Jerash Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Jerash Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Jerash Holdings' change in net profit over the period of time. It can combine multiple indicators of Jerash Holdings, 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
Accumulated Other Comprehensive Income-78.5 K-74.6 K
Operating Income-665 K-631.7 K
Net Loss-2 M-1.9 M
Income Before Tax-1.4 M-1.3 M
Total Other Income Expense Net-704.5 K-669.3 K
Net Income Applicable To Common Shares2.2 M2.1 M
Net Loss-2 M-1.9 M
Income Tax Expense672.5 K1.1 M
Non Operating Income Net Other502.6 K527.7 K
Net Interest Income-1.2 M-1.1 M
Change To Netincome704.5 K683.3 K
Net Loss(0.16)(0.15)
Income Quality(1.24)(1.18)
Net Income Per E B T 1.46  1.00 

Jerash Profitability Driver Comparison

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

Use Jerash Holdings 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 Jerash Holdings 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 Jerash Holdings will appreciate offsetting losses from the drop in the long position's value.

Jerash Holdings Pair Trading

Jerash Holdings Pair Trading Analysis

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

In addition to having Jerash Holdings 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 Health Care ETFs Thematic Idea Now

Health Care ETFs
Health Care ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Health Care ETFs theme has 47 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 Health Care ETFs Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Jerash Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Jerash Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Jerash Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Jerash Holdings Stock:
Check out Risk vs Return Analysis.
For more detail on how to invest in Jerash Stock please use our How to Invest in Jerash Holdings guide.
You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
To fully project Jerash Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Jerash Holdings 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 Jerash Holdings' income statement, its balance sheet, and the statement of cash flows.
Potential Jerash Holdings investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Jerash Holdings investors may work on each financial statement separately, they are all related. The changes in Jerash Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Jerash Holdings'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.