Clayton Williams Energy (Clayton Williams Energy) ROA % : -7.42% (As of Dec. 2016)

Clayton Williams Energy ROA % Chart

Clayton Williams Energy Annual Data
	Trend	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16
ROA %		Get a 7-Day Free Trial					2.51	-1.69	3.05	-7.02	-21.00

Clayton Williams Energy Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
ROA %	Get a 7-Day Free Trial															-14.06	-10.44	-23.09	-42.13	-7.42

Competitive Comparison of Clayton Williams Energy's ROA %

For the Oil & Gas E&P subindustry, Clayton Williams Energy'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.

Clayton Williams Energy's ROA % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Clayton Williams Energy's ROA % distribution charts can be found below:

* The bar in red indicates where Clayton Williams Energy's ROA % falls into.

Clayton Williams Energy ROA % Calculation

Clayton Williams Energy's annualized ROA % for the fiscal year that ended in Dec. 2016 is calculated as:

Clayton Williams Energy's annualized ROA % for the quarter 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 (Dec. 2016) net income data. ROA % is displayed in the 30-year financial page.

Clayton Williams Energy  (NYSE:CWEI) 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:

Note: The Net Income data used here is four times the quarterly (Dec. 2016) net income data. The Revenue data used here is four times the quarterly (Dec. 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.

Clayton Williams Energy ROA % Related Terms

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Clayton Williams Energy (Clayton Williams Energy) Business Description