ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Akzo Nobel India's annualizedNet Income for the quarter that ended in Dec. 2023 was ₹4,552 Mil.
Akzo Nobel India's average Total Assets over the quarter that ended in Dec. 2023 was ₹28,562 Mil. Therefore, Akzo Nobel India's annualized ROA % for the quarter that ended in Dec. 2023 was 15.94%.
The historical rank and industry rank for Akzo Nobel India's ROA % or its related term are showing as below:
NSE:AKZOINDIA'
s ROA % Range Over the Past 10 Years
Min: 6.92 Med: 10.91 Max: 19.44
Current: 14.99
During the past 13 years, Akzo Nobel India's highest ROA % was 19.44%. The lowest was 6.92%. And the median was 10.91%.
NSE:AKZOINDIA's ROA % is ranked better than 95.09% of 1569
companies
in the Chemicals industry
Industry Median: 3.06
vs NSE:AKZOINDIA: 14.99
Akzo Nobel India ROA % Historical Data
The historical data trend for Akzo Nobel India'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.
Competitive Comparison of Akzo Nobel India's ROA %
For the Specialty Chemicals subindustry, Akzo Nobel India'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.
Akzo Nobel India's ROA % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Akzo Nobel India's ROA % distribution charts can be found below:
* The bar in red indicates where Akzo Nobel India's ROA % falls into.
Akzo Nobel India ROA % Calculation
Akzo Nobel India's annualized ROA % for the fiscal year that ended in Mar. 2023 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 (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Akzo Nobel India (NSE:AKZOINDIA) 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 (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.
Akzo Nobel India ROA % Related Terms
Thank you for viewing the detailed overview of Akzo Nobel India's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Akzo Nobel India (NSE:AKZOINDIA) Business Description
Akzo Nobel India Ltd manufactures and sells a variety of chemicals and coatings. The company organizes itself into only segments based on the product type. The coatings segment, which generates the vast majority of revenue, sells decorative paints under the Dulux brand and performance coatings for ships, cars, aircraft, and buildings. The vast majority of revenue comes from India.
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