ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Global-Tech Advanced Innovations's annualizedNet Income for the quarter that ended in Sep. 2015 was $-6.43 Mil.
Global-Tech Advanced Innovations's average Total Assets over the quarter that ended in Sep. 2015 was $96.09 Mil. Therefore, Global-Tech Advanced Innovations's annualized ROA % for the quarter that ended in Sep. 2015 was -6.69%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Global-Tech Advanced Innovations's ROA %
For the Semiconductor Equipment & Materials subindustry, Global-Tech Advanced Innovations's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Global-Tech Advanced Innovations's ROA % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Global-Tech Advanced Innovations's ROA % distribution charts can be found below:
* The bar in red indicates where Global-Tech Advanced Innovations's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Sep. 2015) net income data.
ROA % is displayed in the 30-year financial page.
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Sep. 2015) net income data. The Revenue data used here is two times the semi-annual (Sep. 2015) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Global-Tech Advanced Innovations ROA % Related Terms
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Global-Tech Advanced Innovations (Global-Tech Advanced Innovations) Business Description
Global-Tech Advanced Innovations Inc was organized as an international business company under the laws of the British Virgin Islands on May 2, 1991 and became a publicly traded entity on April 7, 1998. The Company was an exporter of small electrical appliances to North American and European markets. The Company produces complementary metal oxide semiconductor camera modules for sale to cellular phone manufacturers. The Company also comprises immaterial product lines and development programs. It continues to acquire new technologies in an effort to expand its capabilities in manufacturing finished products and components. Its patents are registered in various jurisdictions, including the United States, the United Kingdom, China and France. It competes with established companies in Hong Kong and China, a number of which have substantially greater technical, financial and marketing resources. Competition for contract manufacturing products is based on unit price, product quality and availability and service. Its operations and assets in China are subject to significant political, economic, legal and other uncertainties.
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