ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Silicon Graphics International's annualizedNet Income for the quarter that ended in Jun. 2016 was $0.5 Mil.
Silicon Graphics International's average Total Assets over the quarter that ended in Jun. 2016 was $354.4 Mil. Therefore, Silicon Graphics International's annualized ROA % for the quarter that ended in Jun. 2016 was 0.15%.
The historical rank and industry rank for Silicon Graphics International's ROA % or its related term are showing as below:
SGI's ROA % is not ranked *
in the Hardware industry.
Industry Median: 2.22 * Ranked among companies with meaningful ROA % only.
Silicon Graphics International ROA % Historical 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.
Competitive Comparison of Silicon Graphics International's ROA %
For the Computer Hardware subindustry, Silicon Graphics International'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.
Silicon Graphics International's ROA % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Silicon Graphics International's ROA % distribution charts can be found below:
* The bar in red indicates where Silicon Graphics International's ROA % falls into.
* 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.
Silicon Graphics International (NAS:SGI) 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.
Silicon Graphics International ROA % Related Terms
Thank you for viewing the detailed overview of Silicon Graphics International's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Silicon Graphics International (Silicon Graphics International) Business Description
Silicon Graphics International Corp was formed on October 20, 1999 as a California limited liability company and then it was incorporated in the state of Delaware as a corporation on December 10, 2002. The Company develops markets and sells servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments, with support and professional services. It is designed to deliver high impact results with lower total cost of ownership and to achieve industry speed, scale and efficiency. The Company's two reportable segments are Product and Services. The Product segment is comprised of its compute and storage solutions. Compute solutions include its scale-out computing, scale-up computing, software and cloud/web solutions. Compute solutions also include integrated third-party hardware and software products that it sells to provide a single source solution for its customers. Its compute solutions are designed to minimize the number and complexity of interconnects for power and data transfer to improve reliability, speed of implementation and serviceability. Storage solutions include both hardware and software offerings to address virtually every type of data storage and management requirement. Products range from entry-level disk arrays to complex storage systems, with technology and hardware. Its storage solutions ar e designed to provide extreme scale, broad flexibility and to minimize the cost to store data. The Service segment is comprised of customer service support and professional services. Its customer support organization provides ongoing maintenance and technical support for its products and some third-party products, as well as contracted maintenance services, hardware deployment services (install and de-install), time and materials-based services and spare parts. Its professional services organization provides value added services associated with technology consulting, project management and customer education, all of which help its customers realize the full value of their information technology investments. Its geographic region includes America, Europe and Asia-Pacific. The Company competes with United States such as Dell Inc. (Dell), Hewlett-Packard Company (HP), International Business Machines Corporation (IBM), Oracle Corporation (Oracle), Cray, Inc. (Cray) and Supermicro Computing, Inc. (Supermicro). In the data analytics or HPDA market, it competes with IBM, Lenovo, HP, Fujitsu, Hitachi and Oracle. It has approximately 600 granted patents and pending applications in the United States and abroad. Its solutions are utilized by scientific, business and government communities to fulfill compute intensive application needs in petascale and exascale environments.
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