ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Red Lion Hotels's annualizedNet Income for the quarter that ended in Sep. 2020 was $-12.55 Mil.
Red Lion Hotels's average Total Assets over the quarter that ended in Sep. 2020 was $156.29 Mil. Therefore, Red Lion Hotels's annualized ROA % for the quarter that ended in Sep. 2020 was -8.03%.
The historical rank and industry rank for Red Lion Hotels's ROA % or its related term are showing as below:
RLH's ROA % is not ranked *
in the Travel & Leisure industry.
Industry Median: 2.285 * Ranked among companies with meaningful ROA % only.
Red Lion Hotels ROA % Historical Data
The historical data trend for Red Lion Hotels'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.
For the Lodging subindustry, Red Lion Hotels'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.
Red Lion Hotels's ROA % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Red Lion Hotels's ROA % distribution charts can be found below:
* The bar in red indicates where Red Lion Hotels's ROA % falls into.
Red Lion Hotels ROA % Calculation
Red Lion Hotels's annualized ROA % for the fiscal year that ended in Dec. 2019 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. 2020) net income data.
ROA % is displayed in the 30-year financial page.
Red Lion Hotels (NYSE:RLH) 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. 2020) net income data. The Revenue data used here is four times the quarterly (Sep. 2020) 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.
Red Lion Hotels ROA % Related Terms
Thank you for viewing the detailed overview of Red Lion Hotels's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Red Lion Hotels (Red Lion Hotels) Business Description
Red Lion Hotels Corp is a hospitality group covering upscale, midscale and economy hotels with operations spread across the United States. It owns, manages and franchises hotels and owns and operates an event ticket distribution business. Their hotels are operated under the brands, Hotel RL, Red Lion Hotel, Red Lion Inn & Suites, GuestHouse and Settle Inn & Suites. It operates in two segments, Company Operated Hotels segment which involves providing room food and beverages at owned and leased hotels and Franchised hotels segment which includes licensing of brands to franchisees.
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