ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ply Gem Holdings's annualizedNet Income for the quarter that ended in Dec. 2017 was $58 Mil.
Ply Gem Holdings's average Total Assets over the quarter that ended in Dec. 2017 was $1,337 Mil. Therefore, Ply Gem Holdings's annualized ROA % for the quarter that ended in Dec. 2017 was 4.36%.
The historical rank and industry rank for Ply Gem Holdings's ROA % or its related term are showing as below:
PGEM's ROA % is not ranked *
in the Building Materials industry.
Industry Median: 3.19 * Ranked among companies with meaningful ROA % only.
Ply Gem Holdings ROA % Historical Data
The historical data trend for Ply Gem Holdings'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 Ply Gem Holdings's ROA %
For the Building Materials subindustry, Ply Gem Holdings'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.
Ply Gem Holdings's ROA % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Ply Gem Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Ply Gem Holdings's ROA % falls into.
Ply Gem Holdings ROA % Calculation
Ply Gem Holdings's annualized ROA % for the fiscal year that ended in Dec. 2017 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. 2017) net income data.
ROA % is displayed in the 30-year financial page.
Ply Gem Holdings (NYSE:PGEM) 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. 2017) net income data. The Revenue data used here is four times the quarterly (Dec. 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.
Ply Gem Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Ply Gem Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ply Gem Holdings (Ply Gem Holdings) Business Description
Ply Gem Holdings Inc is a manufacturer of exterior building products in North America. The company operates two business segments: siding, fencing, and stone; and windows and doors. The range of products include vinyl siding, designer accents, cellular PVC trim, vinyl fencing, vinyl railing, stone veneer, roofing, vinyl windows and doors, vinyl and aluminium soffits, siding accessories, aluminium trim coil, wood windows, aluminium windows, and steel and fiberglass doors. Ply Gem serves the new construction, home repair, and remodeling markets in the United States and Canada. Both segments contribute equally to revenue.
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