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LendingTree (LendingTree) ROA %

: 6.03% (As of Dec. 2023)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LendingTree's annualized Net Income for the quarter that ended in Dec. 2023 was $50.9 Mil. LendingTree's average Total Assets over the quarter that ended in Dec. 2023 was $843.9 Mil. Therefore, LendingTree's annualized ROA % for the quarter that ended in Dec. 2023 was 6.03%.

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

TREE' s ROA % Range Over the Past 10 Years
Min: -15.04   Med: 4.31   Max: 22.06
Current: -12.32

During the past 13 years, LendingTree's highest ROA % was 22.06%. The lowest was -15.04%. And the median was 4.31%.

TREE's ROA % is ranked worse than
71.36% of 632 companies
in the Diversified Financial Services industry
Industry Median: -0.335 vs TREE: -12.32

LendingTree ROA % Historical Data

The historical data trend for LendingTree'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.

LendingTree Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.93 -4.52 5.56 -15.04 -12.23

LendingTree Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.45 4.80 -0.04 -61.73 6.03

Competitive Comparison

For the Financial Conglomerates subindustry, LendingTree'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.


LendingTree ROA % Distribution

For the Diversified Financial Services industry and Financial Services sector, LendingTree's ROA % distribution charts can be found below:

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



LendingTree ROA % Calculation

LendingTree'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 )
=-122.404/( (1199.313+802.759)/ 2 )
=-122.404/1001.036
=-12.23 %

LendingTree'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 )
=50.876/( (884.983+802.759)/ 2 )
=50.876/843.871
=6.03 %

* 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.


LendingTree  (NAS:TREE) 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
=50.876/843.871
=(Net Income / Revenue)*(Revenue / Total Assets)
=(50.876 / 537.412)*(537.412 / 843.871)
=Net Margin %*Asset Turnover
=9.47 %*0.6368
=6.03 %

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.


LendingTree ROA % Related Terms

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


LendingTree (LendingTree) Business Description

Traded in Other Exchanges
Address
1415 Vantage Park Drive, Suite 700, Charlotte, NC, USA, 28203
LendingTree Inc is a United States-based company that is principally engaged in operating an online loan marketplace. The company provides online tools and resources that can help consumers find loans or other credit-based offerings they need, including mortgage loans, reverse mortgage, home equity, personal loans, auto loans, credit cards, student loans, small business loans, and other related offerings. The company offers consumers direct access to a broad range of lenders. The company generates match fees by matching consumers with lenders, and closing fees from lenders on loans when a transaction is closed. The company operates business solely in the United States.
Executives
Douglas R Lebda director, officer: Chairman & CEO 6701 CARMEL RD, SUITE 205, CHARLOTTE NC 28226
Jill Olmstead officer: Chief Human Resources Officer BARINGS LLC, 3300 SOUTH TRYON STREET SUITE 2500, CHARLOTTE NC 28202
Diego A Rodriguez director C/O ENGAGESMART, LLC, 30 BRAINTREE HILL OFFICE PARK, SUITE 101, BRAINTREE MA 02184
Mark A Ernst director 255 FISERV DRIVE, BROOKFIELD WI 53045
Scott V. Totman officer: Chief Technology Officer 1415 VANTAGE PARK DR., SUITE 700, CHARLOTTE NC 28203
Shiv Singh officer: Chief Marketing Office C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Carla Shumate officer: Chief Accounting Officer 11115 RUSHMORE DRIVE, CHARLOTTE NC 28277
Neil Salvage officer: President 11115 RUSHMORE DR, CHARLOTTE NC 28277
Robin Henderson director 11115 RUSHMORE DR, CHARLOTTE NC 28277-3442
Scott Peyree officer: President, Insurance 1415 VANTAGE PARK DRIVE, SUITE 700, CHARLOTTE NC 28203
Trent Ziegler officer: Chief Financial Officer 1415 VANTAGE PARK DRIVE, SUITE 700, CHARLOTTE NC 28203
G Kennedy Thompson director 3000 HANOVER STREET, PALO ALTO CA 94304
Lisa M. Young officer: General Counsel C/O ENOVA INTERNATIONAL, INC., 175 W. JACKSON BLVD., CHICAGO IL 60604
Gci Liberty, Inc. director, 10 percent owner 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
Sushil Sharma officer: Chief Product Officer 11115 RUSHMORE DR., CHARLOTTE NC 28277