ZTO EXPRESS Return On Asset vs. Current Ratio
| ZTOB Stock | EUR 18.80 0.10 0.53% |
For ZTO EXPRESS profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ZTO EXPRESS to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ZTO EXPRESS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ZTO EXPRESS's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ZTO EXPRESS over time as well as its relative position and ranking within its peers.
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ZTO EXPRESS Current Ratio vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ZTO EXPRESS's current stock value. Our valuation model uses many indicators to compare ZTO EXPRESS value to that of its competitors to determine the firm's financial worth. ZTO EXPRESS is rated first in return on asset category among its peers. It is rated first in current ratio category among its peers fabricating about 27.45 of Current Ratio per Return On Asset. 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 ZTO EXPRESS's earnings, one of the primary drivers of an investment's value.ZTO Current Ratio 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.
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| = | 0.0663 |
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.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
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| = | 1.82 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
ZTO Current Ratio Comparison
ZTO EXPRESS is currently under evaluation in current ratio category among its peers.
ZTO EXPRESS Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ZTO EXPRESS, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ZTO EXPRESS will eventually generate negative long term returns. The profitability progress is the general direction of ZTO EXPRESS's change in net profit over the period of time. It can combine multiple indicators of ZTO EXPRESS, 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.
ZTO Express Inc. provides express delivery and other value-added logistics services in the Peoples Republic of China. The company was founded in 2002 and is headquartered in Shanghai, the Peoples Republic of China. ZTO EXPRESS operates under Integrated Freight Logistics classification in Germany and is traded on Frankfurt Stock Exchange. It employs 22536 people.
ZTO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ZTO EXPRESS. 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 ZTO EXPRESS 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 ZTO EXPRESS's important profitability drivers and their relationship over time.
Use ZTO EXPRESS 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 ZTO EXPRESS 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 ZTO EXPRESS will appreciate offsetting losses from the drop in the long position's value.ZTO EXPRESS Pair Trading
ZTO EXPRESS Pair Trading Analysis
The ability to find closely correlated positions to ZTO EXPRESS could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ZTO EXPRESS 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 ZTO EXPRESS - 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 ZTO EXPRESS to buy it.
The correlation of ZTO EXPRESS 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 ZTO EXPRESS moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ZTO EXPRESS 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 ZTO EXPRESS 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 ZTO EXPRESS position
In addition to having ZTO EXPRESS 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 Precious Metals Funds Thematic Idea Now
Precious Metals Funds
Funds or Etfs that invest in entities that are involved in mining, processing or dealing of precious metals. The Precious Metals Funds theme has 29 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 Precious Metals Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in ZTO Stock
When determining whether ZTO EXPRESS offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of ZTO EXPRESS's 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 Zto Express Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Zto Express Stock:Check out Your Current Watchlist. For more detail on how to invest in ZTO Stock please use our How to Invest in ZTO EXPRESS guide.You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
To fully project ZTO EXPRESS's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ZTO EXPRESS 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 ZTO EXPRESS's income statement, its balance sheet, and the statement of cash flows.