ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LMI Aerospace's annualizedNet Income for the quarter that ended in Mar. 2017 was $-25.9 Mil.
LMI Aerospace's average Total Assets over the quarter that ended in Mar. 2017 was $391.2 Mil. Therefore, LMI Aerospace's annualized ROA % for the quarter that ended in Mar. 2017 was -6.61%.
The historical rank and industry rank for LMI Aerospace's ROA % or its related term are showing as below:
LMIA's ROA % is not ranked *
in the Aerospace & Defense industry.
Industry Median: 2.295 * Ranked among companies with meaningful ROA % only.
LMI Aerospace ROA % Historical Data
The historical data trend for LMI Aerospace'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 Aerospace & Defense subindustry, LMI Aerospace'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.
LMI Aerospace's ROA % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, LMI Aerospace's ROA % distribution charts can be found below:
* The bar in red indicates where LMI Aerospace's ROA % falls into.
LMI Aerospace ROA % Calculation
LMI Aerospace'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.
LMI Aerospace (NAS:LMIA) 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.
LMI Aerospace ROA % Related Terms
Thank you for viewing the detailed overview of LMI Aerospace's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
LMI Aerospace (LMI Aerospace) Business Description
LMI Aerospace Inc was founded in 1948. The Company is a supplier of structural assemblies, kits and components, and design engineering services to the aerospace and defense markets. The Company provides a array of manufacturing capabilities, as well as engineering and value-added services to the large commercial, corporate and regional, and military aircraft markets. It also provide prototyping, testing and design capabilities to customers in support of new product development and in-service aircraft. LMI Aerospace is a preferred supplier to aircraft original equipment manufacturers (OEMs) and Tier 1 aerospace suppliers. In addition to aerospace products, the Company produces components and assemblies for laser equipment used by semiconductor equipment manufacturers, electronic and electrical wire harnesses, cable assemblies, and mechanical sub-assemblies for the air and rail traffic control, medical equipment, telecommunications, and heavy equipment industries. The Company operates in two business segments consisting of: Aerostructures segment and Engineering Services segment. Its Aerostructures segment fabricates, machines, finishes, integrates, assembles and kits machined and formed close tolerance aluminum, specialty alloy and composite components and higher level assemblies for use by the aerospace and defense industries. The Company also offers its customers value-added services related to the design, production, assembly and distribution of aerospace components and deliver kits of products directly to customer points of use. Its Engineering Services segment provides a complete range of design, engineering and program management services, supporting aircraft product lifecycles from conceptual design, analysis and certification through production support, fleet support, and service life extensions via a complete turnkey engineering solution to OEMs and Tier 1 aerospace suppliers. Its competitors in the aerospace industry consist of a large, fragmented group of companies, including certain business units or affiliates of its customers. The Companys operations are subject to extensive and frequently changing federal, state and local laws and substantial regulation by government agencies.
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