ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Eurasian Natural Resources's annualizedNet Income for the quarter that ended in Dec. 2013 was £-1,606.13 Mil.
Eurasian Natural Resources's average Total Assets over the quarter that ended in Dec. 2013 was £11,249.96 Mil. Therefore, Eurasian Natural Resources's annualized ROA % for the quarter that ended in Dec. 2013 was -14.28%.
The historical rank and industry rank for Eurasian Natural Resources's ROA % or its related term are showing as below:
LSE:ENRB'
s ROA % Range Over the Past 10 Years
Min: -14.39 Med: 13.25 Max: 29.03
Current: -14.39
During the past 10 years, Eurasian Natural Resources's highest ROA % was 29.03%. The lowest was -14.39%. And the median was 13.25%.
LSE:ENRB's ROA % is not ranked
in the Metals & Mining industry.
Industry Median: -14.93
vs LSE:ENRB: -14.39
* 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 Eurasian Natural Resources's ROA %
For the Other Industrial Metals & Mining subindustry, Eurasian Natural Resources'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.
Eurasian Natural Resources's ROA % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Eurasian Natural Resources's ROA % distribution charts can be found below:
* The bar in red indicates where Eurasian Natural Resources's ROA % falls into.
Eurasian Natural Resources ROA % Calculation
Eurasian Natural Resources's annualized ROA % for the fiscal year that ended in Dec. 2013 is calculated as:
* 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 one times the annual (Dec. 2013) 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 one times the annual (Dec. 2013) net income data. The Revenue data used here is one times the annual (Dec. 2013) 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.
Eurasian Natural Resources ROA % Related Terms
Thank you for viewing the detailed overview of Eurasian Natural Resources's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Eurasian Natural Resources (LSE:ENRB) Business Description
Eurasian Natural Resources Corp Ltd was incorporated on December 06, 2006. It is a diversified natural resources company. It performs integrated mining, processing, power generation, logistics and marketing operations. Its six operating segments are Ferroalloys, Iron Ore, Alumina and Aluminium, Other Non-ferrous, Energy, and Logistics. Ferroalloys comprises the extraction and sale of chrome ore as well as the production of ferroalloys from chromium and manganese ores. Iron Ore comprises exploration, extraction, processing and manufacturing of iron ore products. Alumina and Aluminium comprises extraction and processing of bauxite and limestone, and smelting of alumina and aluminium. Other Non-ferrous comprises the exploration and extraction, processing and manufacturing of copper and cobalt products, and the exploration of other minerals in Africa. Energy comprises coal mining and power generation. Logistics includes transportation and logistical services to the company's primary operating divisions and to third parties.
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