Starwood Hotels & Resorts Worldwide (Starwood Hotels & Resorts Worldwide) ROA % : -13.69% (As of Jun. 2016)

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What is Starwood Hotels & Resorts Worldwide ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Starwood Hotels & Resorts Worldwide's annualized Net Income for the quarter that ended in Jun. 2016 was $-1,052 Mil. Starwood Hotels & Resorts Worldwide's average Total Assets over the quarter that ended in Jun. 2016 was $7,683 Mil. Therefore, Starwood Hotels & Resorts Worldwide's annualized ROA % for the quarter that ended in Jun. 2016 was -13.69%.

The historical rank and industry rank for Starwood Hotels & Resorts Worldwide's ROA % or its related term are showing as below:

HOT's ROA % is not ranked ^*
in the Travel & Leisure industry.
Industry Median: 2.355
* Ranked among companies with meaningful ROA % only.

Starwood Hotels & Resorts Worldwide ROA % Historical Data

The historical data trend for Starwood Hotels & Resorts Worldwide's ROA % can be seen below:

* 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.

* Premium members only.

Starwood Hotels & Resorts Worldwide ROA % Chart

Starwood Hotels & Resorts Worldwide Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROA %

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5.06

6.10

7.21

7.27

5.78

Starwood Hotels & Resorts Worldwide Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROA %	Get a 7-Day Free Trial															6.72	4.34	8.07	4.31	-13.69

Competitive Comparison of Starwood Hotels & Resorts Worldwide's ROA %

For the Lodging subindustry, Starwood Hotels & Resorts Worldwide'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.

Starwood Hotels & Resorts Worldwide's ROA % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Starwood Hotels & Resorts Worldwide's ROA % distribution charts can be found below:

* The bar in red indicates where Starwood Hotels & Resorts Worldwide's ROA % falls into.

Starwood Hotels & Resorts Worldwide ROA % Calculation

Starwood Hotels & Resorts Worldwide's annualized ROA % for the fiscal year that ended in Dec. 2015 is calculated as:

ROA %	=	Net Income (A: Dec. 2015 )	/	( (Total Assets (A: Dec. 2014 )	+	Total Assets (A: Dec. 2015 ))	/ count )
	=	489	/	( (8659	+	8268)	/ 2 )
	=	489	/	8463.5
	=	5.78 %

Starwood Hotels & Resorts Worldwide's annualized ROA % for the quarter that ended in Jun. 2016 is calculated as:

ROA %	=	Net Income (Q: Jun. 2016 )	/	( (Total Assets (Q: Mar. 2016 )	+	Total Assets (Q: Jun. 2016 ))	/ count )
	=	-1052	/	( (8444	+	6922)	/ 2 )
	=	-1052	/	7683
	=	-13.69 %

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 four times the quarterly (Jun. 2016) net income data. ROA % is displayed in the 30-year financial page.

Starwood Hotels & Resorts Worldwide (NYSE:HOT) ROA % Explanation

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:

	ROA %		(Q: Jun. 2016 )
=	Net Income	/	Total Assets
=	-1052	/	7683
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-1052 / 4984)	*	(4984 / 7683)
=	Net Margin %	*	Asset Turnover
=	-21.11 %	*	0.6487
=	-13.69 %

Note: The Net Income data used here is four times the quarterly (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 2016) revenue data.

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.

Starwood Hotels & Resorts Worldwide ROA % Related Terms

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Starwood Hotels & Resorts Worldwide (Starwood Hotels & Resorts Worldwide) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) » Definitions » ROA %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.starwoodhotels.com

Starwood Hotels & Resorts Worldwide Inc was incorporated in 1980 under the laws of Maryland. It operates as a hotel and leisure company. The Company conducts its hotel and leisure business both directly and through its subsidiaries. It has 1,222 properties providing approximately 354,200 rooms in approximately 100 countries and 180,400 employees under its management at its owned and managed properties, vacation ownership resorts and corporate offices. The Company manage and operate its hotel business in three separate hotel segments: the Americas, Europe, Africa and the Middle East ("EAME"), and Asia Pacific. Its vacation ownership and residential business is a separate segment. It franchises its Luxury Collection, Westin, Le MÃ©ridien, Sheraton, Four Points by Sheraton, Aloft and Element brands and generally derive licensing and other fees from franchisees based on a fixed percentage of the franchised hotel's room revenue, as well as fees for other services, including centralized reservations, loyalty program, national and international advertising and sales and marketing. The Company's brands name includes St. Regis, The Luxury Collection, W, Westin, Le MÃ©ridien, Sheraton, Four Points, Aloft, and Element. Some of its competitors are private management firms, several are national and international chains that own and operate their own hotels, as well as manage hotels for third-party owners and sell VOIs, under a variety of brands that compete directly with its brands. It is subject to taxation at the federal, state or provincial and local levels in the U.S. and various other countries and jurisdictions.

Executives

Charlene Barshefsky	director
Lizanne Galbreath	director	LASALLE PARTNERS INC, 200 RANDOLPH DR, CHICAGO IL 60601
Kenneth S Siegel	officer: CAO & General Counsel	40 STARWOOD HOTELS & RESORTS, 111 WESTCHESTER AVE, WHITE PLAINS NY 10604
Thomas B Mangas	director, officer: Chief Executive Officer	C/O ARMSTRONG WORLD INDUSTRIES, INC., 2500 COLUMBIA AVENUE, LANCASTER PA 17603
Sergio Rivera	officer: President, The Americas	C/O STARWOOD HOTELS & RESORTS WORLDWIDE,, ONE STARPOINT, STAMFORD CT 06902
Stephen R Quazzo	director	C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601
Daley Clayton C Jr	director	C/O THE PROCTER & GAMBLE COMPANY,, ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Thomas E Clarke	director	C/O NEWELL RUBBERMAID INC, THREE GLENLAKE PKWY., ATLANTA 2Q 30328
Thomas O Ryder	director	C/O READERS DIGEST ASSOCITATION INC, READERS DIGEST RD., PLEASANTVILLE NY 10570
Aylwin B Lewis	director	111 N. CANAL, SUITE 850, CHICAGO IL 60606
Eric Hippeau	director	STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601
Bruce W Duncan	director	ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606
Adam M Aron	director, officer: CEO on an interim basis	AMC ENTERTAINMENT HOLDINGS, INC, 11500 ASH STREET, LEAWOOD KS 66211
Van Paasschen Frits D	director, officer: President and CEO	C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 1111 WESTCHESTER AVENUE, WHITE PLAINS NY 10604
Vasant M Prabhu	officer: Vice Chairman & CFO	C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588