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Advanced Energy Industries (Advanced Energy Industries) ROA % : 5.94% (As of Dec. 2023)


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What is Advanced Energy Industries ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Advanced Energy Industries's annualized Net Income for the quarter that ended in Dec. 2023 was $150 Mil. Advanced Energy Industries's average Total Assets over the quarter that ended in Dec. 2023 was $2,525 Mil. Therefore, Advanced Energy Industries's annualized ROA % for the quarter that ended in Dec. 2023 was 5.94%.

The historical rank and industry rank for Advanced Energy Industries's ROA % or its related term are showing as below:

AEIS' s ROA % Range Over the Past 10 Years
Min: -27.63   Med: 8.13   Max: 24.65
Current: 5.83

During the past 13 years, Advanced Energy Industries's highest ROA % was 24.65%. The lowest was -27.63%. And the median was 8.13%.

AEIS's ROA % is ranked better than
67.1% of 3018 companies
in the Industrial Products industry
Industry Median: 3.64 vs AEIS: 5.83

Advanced Energy Industries ROA % Historical Data

The historical data trend for Advanced Energy Industries'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.

Advanced Energy Industries ROA % Chart

Advanced Energy Industries Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.53 8.47 7.78 10.48 5.64

Advanced Energy Industries Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.82 6.18 5.48 5.89 5.94

Competitive Comparison of Advanced Energy Industries's ROA %

For the Electrical Equipment & Parts subindustry, Advanced Energy Industries'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.


Advanced Energy Industries's ROA % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Advanced Energy Industries's ROA % distribution charts can be found below:

* The bar in red indicates where Advanced Energy Industries's ROA % falls into.



Advanced Energy Industries ROA % Calculation

Advanced Energy Industries's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=128.284/( (1992.168+2556.757)/ 2 )
=128.284/2274.4625
=5.64 %

Advanced Energy Industries's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=150.008/( (2493.686+2556.757)/ 2 )
=150.008/2525.2215
=5.94 %

* 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 four times the quarterly (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


Advanced Energy Industries  (NAS:AEIS) 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 bank’s 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: Dec. 2023 )
=Net Income/Total Assets
=150.008/2525.2215
=(Net Income / Revenue)*(Revenue / Total Assets)
=(150.008 / 1621.084)*(1621.084 / 2525.2215)
=Net Margin %*Asset Turnover
=9.25 %*0.642
=5.94 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


Advanced Energy Industries ROA % Related Terms

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Advanced Energy Industries (Advanced Energy Industries) Business Description

Traded in Other Exchanges
Address
1595 Wynkoop Street, Suite 800, Denver, CO, USA, 80202
Advanced Energy Industries Inc provides precision power-conversion measurement and control solutions that transform power into various forms for use in manufacturing and industrial equipment and applications. The firm serves original equipment manufacturers and end customers in the semiconductor, flat panel display, solar panel, and other industrial capital equipment markets. Products include thin-film power-conversion systems, which control and modify raw electrical power into a customizable, predictable power source, and power control modules, which control and measure temperature during manufacturing cycles. A majority of the firm's revenue is generated in the United States, with the rest primarily from Asia and Europe.
Executives
Anne Delsanto director 1133 INNOVATION WAY, SUNNYVALE CA 94089
Ronald C Foster director 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Paul R Oldham officer: EVP, CFO 1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
Lanesha Minnix director TWO LAKESIDE COMMONS, BUILDING TWO, 980 HAMMOND DRIVE, SUITE 500, ATLANTA GA 30328
Tina Donikowski director 1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
John Donaghey officer: EVP, Global Sales 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Brian Shirley director 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Elizabeth Karpinski Vonne officer: EVP, General Counsel 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Eduardo Bernal Acebedo officer: EVP and COO 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Reed David director 6501 WILLIAM CANNON DRIVE WEST, AUSTIN TX 78735
Stephen Douglas Kelley officer: President and CEO 1900 S. PRICE ROAD, CHANDLER AZ 85286
Yuval Wasserman officer: EVP, Sales, Service & Mktg 1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
Dana Edward Huth officer: CHIEF REVENUE OFFICER 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Thomas O Mcgimpsey officer: EVP Gen Counsel & Corp Sec 380 INTERLOCKEN CRESCENT, BROOMFIELD CO 80021
Neil David Brinker officer: EVP, COO 1625 SHARP POINT DRIVE, FORT COLLINS CO 80525