ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Rautaruukki Oyj's annualizedNet Income for the quarter that ended in Sep. 2014 was €-88 Mil.
Rautaruukki Oyj's average Total Assets over the quarter that ended in Sep. 2014 was €2,245 Mil. Therefore, Rautaruukki Oyj's annualized ROA % for the quarter that ended in Sep. 2014 was -3.92%.
The historical rank and industry rank for Rautaruukki Oyj's ROA % or its related term are showing as below:
OHEL:RTRKS'
s ROA % Range Over the Past 10 Years
Min: -9.97 Med: 0.79 Max: 17.5
Current: -2.34
During the past 13 years, Rautaruukki Oyj's highest ROA % was 17.50%. The lowest was -9.97%. And the median was 0.79%.
OHEL:RTRKS's ROA % is not ranked
in the Steel industry.
Industry Median: 3.06
vs OHEL:RTRKS: -2.34
Rautaruukki Oyj ROA % Historical Data
The historical data trend for Rautaruukki Oyj'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 Steel subindustry, Rautaruukki Oyj'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.
Rautaruukki Oyj's ROA % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Rautaruukki Oyj's ROA % distribution charts can be found below:
* The bar in red indicates where Rautaruukki Oyj's ROA % falls into.
Rautaruukki Oyj ROA % Calculation
Rautaruukki Oyj's annualized ROA % for the fiscal year that ended in Dec. 2013 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. 2014) net income data.
ROA % is displayed in the 30-year financial page.
Rautaruukki Oyj (OHEL:RTRKS) 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. 2014) net income data. The Revenue data used here is four times the quarterly (Sep. 2014) 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.
Rautaruukki Oyj ROA % Related Terms
Thank you for viewing the detailed overview of Rautaruukki Oyj's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rautaruukki Oyj supplies metal-based components, systems and integrated systems to construction and the engineering industry. The company's operations are structured into three divisions: construction, engineering, and steel business. Its construction division supplies steel construction solutions for commercial and industrial construction, as well as for infrastructure foundation and transport infrastructure projects. The divisions' product portfolio includes building frames, wall and roofing products, integrated systems for single and multi-story construction, bridges, traffic noise barriers and highway guard rails, piles, retaining wall structures and foundations for harbor construction. Its customers include developers, designs and builders of commercial, industrial and office premises, logistics and sports complexes and infrastructure services as well as roofing suppliers. Its engineering division supplies systems and components to the engineering industry, such as cabins, booms, masts and frames for goods and container handling, the construction industry and mining and forestry, telescopic booms, frames and parts; windmill components and oil sumps. Main markets serve international European companies, specifically the lifting, handling, and transportation equipment industry, the energy industry, the marine and offshore industry and the paper and wood industry. The Metals division supplies steel products associated with prefabrication, logistics and storage services. The division's product portfolio consists of hot and cold-rolled steels, metal and color-coated steels, tubes and profiles and stainless steel and aluminum sold as trading products. Its customers include the transportation equipment, construction, engineering and electronics industries in Europe and Russia.
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