ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Jacksonville Bancorp's annualizedNet Income for the quarter that ended in Sep. 2015 was $3.97 Mil.
Jacksonville Bancorp's average Total Assets over the quarter that ended in Sep. 2015 was $503.56 Mil. Therefore, Jacksonville Bancorp's annualized ROA % for the quarter that ended in Sep. 2015 was 0.79%.
The historical rank and industry rank for Jacksonville Bancorp's ROA % or its related term are showing as below:
JAXB's ROA % is not ranked *
in the Banks industry.
Industry Median: 0.9 * Ranked among companies with meaningful ROA % only.
* 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 Jacksonville Bancorp's ROA %
For the Banks - Regional subindustry, Jacksonville 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.
Jacksonville Bancorp's ROA % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Jacksonville Bancorp's ROA % distribution charts can be found below:
* The bar in red indicates where Jacksonville Bancorp's ROA % falls into.
Jacksonville Bancorp ROA % Calculation
Jacksonville Bancorp'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.
Jacksonville Bancorp (NAS:JAXB) 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.
Jacksonville Bancorp ROA % Related Terms
Thank you for viewing the detailed overview of Jacksonville Bancorp's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Jacksonville Bancorp (Jacksonville Bancorp) Business Description
Jacksonville Bancorp Inc was incorporated under the laws of the State of Florida on October 24, 1997 for the purpose of organizing the Bank. It is a one-bank holding company owning 100% of the outstanding shares of the Bank. The Company's only business is the ownership and operation of the Bank, which opened for business on May 28, 1999. The Bank is a Florida state-chartered commercial bank, and its deposits are insured by the FDIC. Its market area is all of Duval County mainly the Southside, Westside, Arlington, Mandarin and Downtown areas of Jacksonville and Jacksonville Beach, Florida, in addition to surrounding communities within the St. Johns, Clay and Nassau counties. Jacksonville is the largest city by area in the United States covering 747 square miles. Duval County has a strong commercial and industrial base, which has been steadily expanding in recent years. Financial institutions compete with one another for deposits. The Company is in competition with existing area financial institutions, including commercial banks and savings institutions, insurance companies, consumer finance companies, brokerage houses, mortgage banking companies, credit unions, and other business entities which target traditional banking markets, through offices, mail, the internet, mobile devices and otherwise. Its primary business segment is community banking and consists of attracting deposits from the general public and using such deposits and other sources of funds to originate commercial business loans, commercial real estate loans, residential mortgage loans, and a variety of consumer loans. The Company is regulated by the Federal Reserve Board under the Federal Bank Holding Company Act.
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