ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. FEI Co's annualizedNet Income for the quarter that ended in Jun. 2016 was $99.8 Mil.
FEI Co's average Total Assets over the quarter that ended in Jun. 2016 was $1,434.4 Mil. Therefore, FEI Co's annualized ROA % for the quarter that ended in Jun. 2016 was 6.95%.
The historical rank and industry rank for FEI Co's ROA % or its related term are showing as below:
FEIC's ROA % is not ranked *
in the Hardware industry.
Industry Median: 2.22 * Ranked among companies with meaningful ROA % only.
FEI Co ROA % Historical Data
The historical data trend for FEI Co'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 Scientific & Technical Instruments subindustry, FEI Co'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.
FEI Co's ROA % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, FEI Co's ROA % distribution charts can be found below:
* The bar in red indicates where FEI Co's ROA % falls into.
FEI Co ROA % Calculation
FEI Co's annualized ROA % for the fiscal year that ended in Dec. 2015 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 (Jun. 2016) net income data.
ROA % is displayed in the 30-year financial page.
FEI Co (NAS:FEIC) 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 (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 2016) 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.
FEI Co ROA % Related Terms
Thank you for viewing the detailed overview of FEI Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
FEI Co was founded and incorporated in Oregon in 1971. It is a supplier of scientific instruments and related services for nanoscale applications and solutions for industry and science. It designs, manufactures, and supports the high-performance microscopy workflows that provide images and answers in the micro-, nano-, and picometer scales. The Company operates in two segments including Industry Group and the Science Group. The Industry Group consists of customers in semiconductor integrated circuit manufacturing and related industries such as manufacturers of data storage equipment and other technologies, as well as customers in the oil and gas industry. The tools developed for Industry Group customers are generally aimed at improving their processes to increase overall yields, whether in a semiconductor factory or at an oil and gas reservoir. For the semiconductor market, it shrinks line widths and process nodes of 16/14 nanometers and smaller, increasing complexity in their materials such as high-k metal gates and low-k dielectrics and increasing device complexity such as 3D transistor architectures; and this products are used in laboratories, near the fabrication line to speed new product development and increase yields by enabling 3D metrology for advanced process control, defect analysis, and root cause failure analysis. For the oil and gas market, its products are used to increase yields in oil and gas exploration and for laboratory analysis. It also provides support for products and customers for the entire life cycle of a tool from installation through the warranty period, and after the warranty period through contract coverage or on a time and materials basis. The Science Group includes universities, public and private research laboratories and customers in industries, including metals, automobiles, aerospace, geosciences and forensics. The tools developed for customers in the Science Group are generally aimed at the exploration and discovery of new materials and chemistries or solving for causes and cures of diseases. The tools are used in a laboratory and are generally not used in industrial applications. It also includes customers at universities, government laboratories and research institutes engaged in biotech and life sciences applications, as well as pharmaceutical and biotech companies. Its solutions enable scientific discovery and advancement for researchers and help manufacturers develop, analyze and produce advanced products. Its products are also used in root cause failure analysis and quality control applications across a range of industries. Its products' ultra-high resolution imaging allows structural biologists to create detailed 3D reconstructions of complex biological structures such as proteins and viruses. Cellular biologists use companies tools to correlate wide-field, lower resolution optical images with higher resolution electron microscope imaging. Its products are also used by drug researchers
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