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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Starwood Hotels & Resorts Worldwide's annualized Net Income for the quarter that ended in Jun. 2016 was $-1,052 Mil. Starwood Hotels & Resorts Worldwide's average Total Assets over the quarter that ended in Jun. 2016 was $7,683 Mil. Therefore, Starwood Hotels & Resorts Worldwide's annualized ROA % for the quarter that ended in Jun. 2016 was -13.69%.
The historical rank and industry rank for Starwood Hotels & Resorts Worldwide's ROA % or its related term are showing as below:
The historical data trend for Starwood Hotels & Resorts Worldwide'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.
Starwood Hotels & Resorts Worldwide Annual Data | |||||||||||||||||||||
Trend | Dec06 | Dec07 | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | |||||||||||
ROA % | Get a 7-Day Free Trial | 5.06 | 6.10 | 7.21 | 7.27 | 5.78 |
Starwood Hotels & Resorts Worldwide Quarterly Data | ||||||||||||||||||||
Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | |
ROA % | Get a 7-Day Free Trial | 6.72 | 4.34 | 8.07 | 4.31 | -13.69 |
For the Lodging subindustry, Starwood Hotels & Resorts Worldwide'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.
For the Travel & Leisure industry and Consumer Cyclical sector, Starwood Hotels & Resorts Worldwide's ROA % distribution charts can be found below:
* The bar in red indicates where Starwood Hotels & Resorts Worldwide's ROA % falls into.
Starwood Hotels & Resorts Worldwide's annualized ROA % for the fiscal year that ended in Dec. 2015 is calculated as:
ROA % | = | Net Income (A: Dec. 2015 ) | / | ( (Total Assets (A: Dec. 2014 ) | + | Total Assets (A: Dec. 2015 )) | / count ) |
= | 489 | / | ( (8659 | + | 8268) | / 2 ) | |
= | 489 | / | 8463.5 | ||||
= | 5.78 % |
Starwood Hotels & Resorts Worldwide's annualized ROA % for the quarter that ended in Jun. 2016 is calculated as:
ROA % | = | Net Income (Q: Jun. 2016 ) | / | ( (Total Assets (Q: Mar. 2016 ) | + | Total Assets (Q: Jun. 2016 )) | / count ) |
= | -1052 | / | ( (8444 | + | 6922) | / 2 ) | |
= | -1052 | / | 7683 | ||||
= | -13.69 % |
* 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 (Jun. 2016) net income data. ROA % is displayed in the 30-year financial page.
Starwood Hotels & Resorts Worldwide (NYSE:HOT) 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:
ROA % | (Q: Jun. 2016 ) | ||
= | Net Income | / | Total Assets |
= | -1052 | / | 7683 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (-1052 / 4984) | * | (4984 / 7683) |
= | Net Margin % | * | Asset Turnover |
= | -21.11 % | * | 0.6487 |
= | -13.69 % |
Note: The Net Income data used here is four times the quarterly (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Thank you for viewing the detailed overview of Starwood Hotels & Resorts Worldwide's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Charlene Barshefsky | director | |
Lizanne Galbreath | director | LASALLE PARTNERS INC, 200 RANDOLPH DR, CHICAGO IL 60601 |
Kenneth S Siegel | officer: CAO & General Counsel | 40 STARWOOD HOTELS & RESORTS, 111 WESTCHESTER AVE, WHITE PLAINS NY 10604 |
Thomas B Mangas | director, officer: Chief Executive Officer | C/O ARMSTRONG WORLD INDUSTRIES, INC., 2500 COLUMBIA AVENUE, LANCASTER PA 17603 |
Sergio Rivera | officer: President, The Americas | C/O STARWOOD HOTELS & RESORTS WORLDWIDE,, ONE STARPOINT, STAMFORD CT 06902 |
Stephen R Quazzo | director | C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601 |
Daley Clayton C Jr | director | C/O THE PROCTER & GAMBLE COMPANY,, ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202 |
Thomas E Clarke | director | C/O NEWELL RUBBERMAID INC, THREE GLENLAKE PKWY., ATLANTA 2Q 30328 |
Thomas O Ryder | director | C/O READERS DIGEST ASSOCITATION INC, READERS DIGEST RD., PLEASANTVILLE NY 10570 |
Aylwin B Lewis | director | 111 N. CANAL, SUITE 850, CHICAGO IL 60606 |
Eric Hippeau | director | STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601 |
Bruce W Duncan | director | ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606 |
Adam M Aron | director, officer: CEO on an interim basis | AMC ENTERTAINMENT HOLDINGS, INC, 11500 ASH STREET, LEAWOOD KS 66211 |
Van Paasschen Frits D | director, officer: President and CEO | C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 1111 WESTCHESTER AVENUE, WHITE PLAINS NY 10604 |
Vasant M Prabhu | officer: Vice Chairman & CFO | C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588 |
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