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SmartRent (SmartRent) ROA % : -2.57% (As of Dec. 2023)


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What is SmartRent ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. SmartRent's annualized Net Income for the quarter that ended in Dec. 2023 was $-13.2 Mil. SmartRent's average Total Assets over the quarter that ended in Dec. 2023 was $512.7 Mil. Therefore, SmartRent's annualized ROA % for the quarter that ended in Dec. 2023 was -2.57%.

The historical rank and industry rank for SmartRent's ROA % or its related term are showing as below:

SMRT' s ROA % Range Over the Past 10 Years
Min: -35.73   Med: -18.98   Max: -6.46
Current: -6.54

During the past 4 years, SmartRent's highest ROA % was -6.46%. The lowest was -35.73%. And the median was -18.98%.

SMRT's ROA % is ranked worse than
66.93% of 2824 companies
in the Software industry
Industry Median: 0.975 vs SMRT: -6.54

SmartRent ROA % Historical Data

The historical data trend for SmartRent'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.

* Premium members only.

SmartRent ROA % Chart

SmartRent Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROA %
-35.73 -21.06 -16.89 -6.46

SmartRent Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -15.39 -9.64 -7.83 -5.96 -2.57

Competitive Comparison of SmartRent's ROA %

For the Software - Application subindustry, SmartRent'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.


SmartRent's ROA % Distribution in the Software Industry

For the Software industry and Technology sector, SmartRent's ROA % distribution charts can be found below:

* The bar in red indicates where SmartRent's ROA % falls into.



SmartRent ROA % Calculation

SmartRent's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=-34.587/( (560.845+509.756)/ 2 )
=-34.587/535.3005
=-6.46 %

SmartRent's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=-13.2/( (515.597+509.756)/ 2 )
=-13.2/512.6765
=-2.57 %

* 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 (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


SmartRent  (NYSE:SMRT) 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 bank’s 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:

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=-13.2/512.6765
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-13.2 / 241.012)*(241.012 / 512.6765)
=Net Margin %*Asset Turnover
=-5.48 %*0.4701
=-2.57 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


SmartRent ROA % Related Terms

Thank you for viewing the detailed overview of SmartRent's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


SmartRent (SmartRent) Business Description

Traded in Other Exchanges
N/A
Address
8665 E. Hartford Drive, Suite 200, Scottsdale, AZ, USA, 85255
SmartRent Inc is an enterprise smart home and smart building technology platform for property owners, managers and residents. The SmartRent solution is designed to provide property managers with seamless visibility and control over all their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents. Geographical, it operates in the United States and International; majority revenue being generated from the United States.
Executives
Alana Beard director 6060 CENTER DRIVE 10TH FLOOR, LOS ANGELES CA 90045
Bruce C Strohm director C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Isaiah Derose-wilson officer: Chief Technology Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Kristen Morse Lee officer: General Counsel 8665 E HARTFORD DRIVE SUITE 200, SCOTTSDALE AZ 85255
Robert T. Best director 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Bain Capital Venture Fund 2019, L.p. 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
Christopher Jon Edmonds officer: Chief Revenue Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Demetrios Barnes officer: Chief Operating Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Mitch Karren officer: Chief Product Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Robyn Young officer: Chief Marketing Officer 8665 E HARTFORD DRIVE, SUITE 200, SCOTTSDALE AZ 855255
Hiroshi Okamoto officer: CFO 8665 E HARTFORD DRIVE, SUITE 200, SCOTTSDALE AZ 85255
John Hanson Helm 10 percent owner C/O REAL ESTATE TECHNOLOGY VENTURES, 136 HEBER AVE, SUITE 304, PARK CITY UT 84060
Brian M Roberts officer: Chief Legal Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300 & 380, SCOTTSDALE AZ 85255
Jonathan Wolter officer: Chief Financial Officer 1235 RADIO ROAD, SUITE 110, REDWOOD CITY CA 94065
Lucas Merwan Haldeman director, officer: Chief Executive Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255