ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. BNC Bancorp's annualizedNet Income for the quarter that ended in Mar. 2017 was $57.7 Mil.
BNC Bancorp's average Total Assets over the quarter that ended in Mar. 2017 was $7,488.5 Mil. Therefore, BNC Bancorp's annualized ROA % for the quarter that ended in Mar. 2017 was 0.77%.
The historical rank and industry rank for BNC Bancorp's ROA % or its related term are showing as below:
BNCN's ROA % is not ranked *
in the Banks industry.
Industry Median: 0.9 * Ranked among companies with meaningful ROA % only.
BNC Bancorp ROA % Historical Data
The historical data trend for BNC Bancorp'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.
For the Banks - Regional subindustry, BNC Bancorp'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.
BNC Bancorp's ROA % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, BNC Bancorp's ROA % distribution charts can be found below:
* The bar in red indicates where BNC Bancorp's ROA % falls into.
BNC Bancorp ROA % Calculation
BNC Bancorp's annualized ROA % for the fiscal year that ended in Dec. 2016 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 four times the quarterly (Mar. 2017) net income data.
ROA % is displayed in the 30-year financial page.
BNC Bancorp (NAS:BNCN) 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:
Note:
The Net Income data used here is four times the quarterly (Mar. 2017) net income data. The Revenue data used here is four times the quarterly (Mar. 2017) 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.
BNC Bancorp ROA % Related Terms
Thank you for viewing the detailed overview of BNC Bancorp's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
BNC Bancorp was formed in 2002 to serve as a one-bank holding company for Bank of North Carolina, BNC. BNC is a full service commercial bank, incorporated under the laws of the State of North Carolina on November 15, 1991. The Bank is a full service commercial bank. It is engaged in the business of attracting deposits from the general public and using such deposits, together with other funding from its lines of credit, to make mainly consumer and commercial loans. Specifically, the Bank makes business loans secured by real estate, personal property and accounts receivable; unsecured business loans; consumer loans, which are secured by consumer products, such as automobiles and boats; unsecured consumer loans; commercial real estate loans; and other loans. It also offers a range of banking services, including checking and savings accounts, commercial, installment and personal loans, safe deposit boxes, and other associated services. Deposits are the main source of the Bank's funds for lending and other investment purposes. The Bank attracts both short-term and long-term deposits from the general public locally and out-of-state by offering a number of accounts and rates. It offers statement savings accounts, negotiable order of withdrawal accounts, money market demand accounts, noninterest-bearing accounts, and fixed interest rate certificates with varying maturities. Its operations are managed along two operating segments consisting of banking operations and mortgage origination. The purpose of the mortgage origination operating segment is the origination and subsequent sale of residential mortgage loans, while all other banking activities are performed in the banking operations segment. BNC is also subject to certain regulations of the Federal Reserve governing the reserves to be maintained against deposits and other matters.
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