ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Alon USA Partners LP's annualizedNet Income for the quarter that ended in Sep. 2017 was $117 Mil.
Alon USA Partners LP's average Total Assets over the quarter that ended in Sep. 2017 was $1,143 Mil. Therefore, Alon USA Partners LP's annualized ROA % for the quarter that ended in Sep. 2017 was 10.24%.
The historical rank and industry rank for Alon USA Partners LP's ROA % or its related term are showing as below:
ALDW's ROA % is not ranked *
in the Oil & Gas industry.
Industry Median: 2.63 * Ranked among companies with meaningful ROA % only.
* 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 Alon USA Partners LP's ROA %
For the Oil & Gas Refining & Marketing subindustry, Alon USA Partners LP'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.
Alon USA Partners LP's ROA % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Alon USA Partners LP's ROA % distribution charts can be found below:
* The bar in red indicates where Alon USA Partners LP's ROA % falls into.
Alon USA Partners LP ROA % Calculation
Alon USA Partners LP'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 (Sep. 2017) net income data.
ROA % is displayed in the 30-year financial page.
Alon USA Partners LP (NYSE:ALDW) 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 (Sep. 2017) net income data. The Revenue data used here is four times the quarterly (Sep. 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.
Alon USA Partners LP ROA % Related Terms
Thank you for viewing the detailed overview of Alon USA Partners LP's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Alon USA Partners LP (Alon USA Partners LP) Business Description
Alon USA Partners LP is engaged principally in the business of operating a crude oil refinery in Big Spring, Texas. The company refines crude oil into finished products, which it markets primarily in Central and West Texas, Oklahoma, New Mexico and Arizona, through its integrated wholesale distribution network to retail convenience stores and other third-party distributors. Its refinery produces ultra-low sulfur gasoline, ultra-low sulfur diesel, jet fuel, petrochemicals, petrochemical feedstocks, asphalt and other petroleum products. Substantially most of the revenues for the group are derived from the sale of refined products.
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