MRVL has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Return on assets is calculated as net income divided by its average total assets. Marvell Technology Group Ltd's annualized net income for the quarter that ended in Apr. 2015 was $56 Mil. Marvell Technology Group Ltd's average total assets for the quarter that ended in Apr. 2015 was $5,863 Mil. Therefore, Marvell Technology Group Ltd's annualized return on assests (ROA) for the quarter that ended in Apr. 2015 was 0.96%.
Marvell Technology Group Ltd's annualized Return on Assets (ROA) for the fiscal year that ended in Jan. 2015 is calculated as:
|ROA||=||Net Income (A: Jan. 2015 )||/||( (Total Assets (A: Jan. 2014 )||+||Total Assets (A: Jan. 2015 ))||/ 2 )|
|=||435.346||/||( (5451.01||+||5884.387)||/ 2 )|
Marvell Technology Group Ltd's annualized Return on Assets (ROA) for the quarter that ended in Apr. 2015 is calculated as:
|ROA||=||Net Income (Q: Apr. 2015 )||/||( (Total Assets (Q: Jan. 2015 )||+||Total Assets (Q: Apr. 2015 ))||/ 2 )|
|=||56.36||/||( (5884.387||+||5842.049)||/ 2 )|
In the calculation of annual return on assets, 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 (Apr. 2015) net income data. Return on Assets is displayed in the 10-year financial page.
Return on assets (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. ROAs can vary drastically across industries. Therefore, return on assets 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:
|Return on Assets (ROA)||(Q: Apr. 2015 )|
|=||Net Income||/||Average Total Assets|
|=||(Net Income / Revenue)||*||(Revenue / Average Total Assets)|
|=||(56.36 / 2897.152)||*||(2897.152 / 5863.218)|
|=||Net Profit Margin||*||Asset Turnover|
Like ROE, ROA is calculated with only 12 months data. Fluctuations in the companys 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 companys tax rate and its interest payment. ROA may not reflect the true earning power of the assets. A more accurate measurement is Return on Capital (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 Moodys is. Although Moodys ROA and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Marvell Technology Group Ltd Annual Data
Marvell Technology Group Ltd Quarterly Data
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.