GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Nutrastar International Inc (GREY:NUIN) » Definitions » ROA %

Nutrastar International (Nutrastar International) ROA % : 15.50% (As of Sep. 2015)


View and export this data going back to . Start your Free Trial

What is Nutrastar International ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nutrastar International's annualized Net Income for the quarter that ended in Sep. 2015 was $23.96 Mil. Nutrastar International's average Total Assets over the quarter that ended in Sep. 2015 was $154.61 Mil. Therefore, Nutrastar International's annualized ROA % for the quarter that ended in Sep. 2015 was 15.50%.

The historical rank and industry rank for Nutrastar International's ROA % or its related term are showing as below:

NUIN's ROA % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.54
* Ranked among companies with meaningful ROA % only.

Nutrastar International ROA % Historical Data

The historical data trend for Nutrastar International'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.

* Premium members only.

Nutrastar International ROA % Chart

Nutrastar International Annual Data
Trend Jul05 Jul06 Jul07 Jul08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.10 25.84 20.07 20.46 17.14

Nutrastar International Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.20 18.95 9.77 18.87 15.50

Competitive Comparison of Nutrastar International's ROA %

For the Drug Manufacturers - General subindustry, Nutrastar International'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.


Nutrastar International's ROA % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Nutrastar International's ROA % distribution charts can be found below:

* The bar in red indicates where Nutrastar International's ROA % falls into.



Nutrastar International ROA % Calculation

Nutrastar International's annualized ROA % for the fiscal year that ended in Dec. 2014 is calculated as:

ROA %=Net Income (A: Dec. 2014 )/( (Total Assets (A: Dec. 2013 )+Total Assets (A: Dec. 2014 ))/ count )
=22.72/( (121.237+143.799)/ 2 )
=22.72/132.518
=17.14 %

Nutrastar International's annualized ROA % for the quarter that ended in Sep. 2015 is calculated as:

ROA %=Net Income (Q: Sep. 2015 )/( (Total Assets (Q: Jun. 2015 )+Total Assets (Q: Sep. 2015 ))/ count )
=23.964/( (154.768+154.443)/ 2 )
=23.964/154.6055
=15.50 %

* 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. 2015) net income data. ROA % is displayed in the 30-year financial page.


Nutrastar International  (GREY:NUIN) 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:

ROA %(Q: Sep. 2015 )
=Net Income/Total Assets
=23.964/154.6055
=(Net Income / Revenue)*(Revenue / Total Assets)
=(23.964 / 44.072)*(44.072 / 154.6055)
=Net Margin %*Asset Turnover
=54.37 %*0.2851
=15.50 %

Note: The Net Income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) 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.


Nutrastar International ROA % Related Terms

Thank you for viewing the detailed overview of Nutrastar International's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Nutrastar International (Nutrastar International) Business Description

Traded in Other Exchanges
N/A
Address
Nutrastar International Inc produces and supplies traditional Chinese medicine consumer products. The business activity of the group is operated by Cordyceps Militaris, Beverages and Organic and specialty food products segments. The Cordyceps Militaris segment consists of the growing and sales of Cordyceps Militaris, which business is conducted through Daqing Shuaiyi. The beverages segment consists of the manufacturing of functional health beverages featuring the Cordyceps Militaris as a core ingredient. The organic and specialty food products segment consists of the sales of rice, flour, silage corn and other agricultural products. In addition, it is also a wholesale distributor of organic and specialty food. All the operations are carried out in China.

Nutrastar International (Nutrastar International) Headlines

From GuruFocus

Balance Sheets Matter

By Shadow Stock Shadow Stock 08-07-2015

Nutrastar - The Greatest Opportunity for 2014

By Libertadpp Libertadpp 01-13-2014