ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Constant Contact's annualizedNet Income for the quarter that ended in Sep. 2015 was $25.6 Mil.
Constant Contact's average Total Assets over the quarter that ended in Sep. 2015 was $348.8 Mil. Therefore, Constant Contact's annualized ROA % for the quarter that ended in Sep. 2015 was 7.33%.
The historical rank and industry rank for Constant Contact's ROA % or its related term are showing as below:
CTCT's ROA % is not ranked *
in the Media - Diversified industry.
Industry Median: 0.77 * Ranked among companies with meaningful ROA % only.
Constant Contact ROA % Historical Data
The historical data trend for Constant Contact'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.
Competitive Comparison of Constant Contact's ROA %
For the Advertising Agencies subindustry, Constant Contact'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.
Constant Contact's ROA % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Constant Contact's ROA % distribution charts can be found below:
* The bar in red indicates where Constant Contact's ROA % falls into.
Constant Contact ROA % Calculation
Constant Contact's annualized ROA % for the fiscal year that ended in Dec. 2014 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 (Sep. 2015) net income data.
ROA % is displayed in the 30-year financial page.
Constant Contact (NAS:CTCT) 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 (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) 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.
Constant Contact ROA % Related Terms
Thank you for viewing the detailed overview of Constant Contact's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Constant Contact (Constant Contact) Business Description
Constant Contact Inc was incorporated in Massachusetts in 1995 under the name Roving Software Incorporated. The Company provides online marketing tools that are designed for small organizations, including small businesses, associations and non-profits. Its suite of online marketing tools, which include Email Marketing, EventSpot, Social Campaigns, SaveLocal, SinglePlatform and Survey, enable its customers to launch and monitor marketing campaigns across multiple channels, including email, social media, events, local deals, online listings and surveys. Its customers include various types of small organizations including retailers, restaurants, law and accounting firms, consultants, non-profits, religious organizations and alumni associations. Its email marketing product allows customers to easily create, send and track professional-looking email campaigns. The product includes a campaign creation wizard that makes it easy to create and edit email campaigns with access to over 300 pre-designed email campaign templates that reflect a wide variety of themes and styles and over 15 million images through its relationship with Bigstock, a subsidiary of Shutterstock, Inc. The Company also offers market leading free tools and applications that allow customers to add and update contacts, including adding contacts directly from a computer or point of sale device. Its event marketing product allows its customers to promote and manage events, communicate with invitees and registrants, capture and track registrations and collect online payments. The Company's social media products include Social Campaigns, which empowers customers to reach and engage users on Facebook to grow their fans and create social word-of-mouth through easy-to-create offers and promotions. SaveLocal provides service to its customers to retain existing customers and attract new customers by creating, running and managing local deals, and provides them with end-to-end control over their deals at an affordable price. The Company's online survey product enables its customers to survey their customers or members and analyze responses. SinglePlatform provides its customers the power to manage all of their key online listings from one place by helping them to create a content rich digital storefront, which can include menus, photos, services, offers and featured products. As of December 31, 2013, the Company served a large and diverse group of approximately 595,000 unique paying customers. Its Social Campaigns product competes with offerings by Offerpop Corporation, Pagemodo, a subsidiary of VistaPrint N.V., Vocus Social Media LLC doing business as North Social and Wildfire Interactive, Inc. Its SaveLocal product competes with offerings by Groupon, Inc., LivingSocial, Inc., Amazon Local and Google Offers. Its SinglePlatform product competes with offerings by Yext, Inc. and Locu Inc., a subsidiary of GoDaddy.com, LLC. Its survey product competes with offerings by Surveymonkey.c
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