ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Micropac Industries's annualizedNet Income for the quarter that ended in Feb. 2024 was $0.71 Mil.
Micropac Industries's average Total Assets over the quarter that ended in Feb. 2024 was $54.80 Mil. Therefore, Micropac Industries's annualized ROA % for the quarter that ended in Feb. 2024 was 1.29%.
The historical rank and industry rank for Micropac Industries's ROA % or its related term are showing as below:
MPAD'
s ROA % Range Over the Past 10 Years
Min: 0.9 Med: 5.53 Max: 12.63
Current: 1.61
During the past 13 years, Micropac Industries's highest ROA % was 12.63%. The lowest was 0.90%. And the median was 5.53%.
MPAD's ROA % is ranked worse than 55.38% of 2481
companies
in the Hardware industry
Industry Median: 2.34
vs MPAD: 1.61
Micropac Industries ROA % Historical Data
The historical data trend for Micropac Industries'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 Electronic Components subindustry, Micropac Industries'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.
Micropac Industries ROA % Distribution
For the Hardware industry and Technology sector, Micropac Industries's ROA % distribution charts can be found below:
* The bar in red indicates where Micropac Industries's ROA % falls into.
Micropac Industries ROA % Calculation
Micropac Industries's annualized ROA % for the fiscal year that ended in Nov. 2023 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 (Feb. 2024) net income data.
ROA % is displayed in the 30-year financial page.
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 (Feb. 2024) net income data. The Revenue data used here is four times the quarterly (Feb. 2024) 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.
Micropac Industries ROA % Related Terms
Thank you for viewing the detailed overview of Micropac Industries's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Micropac Industries (Micropac Industries) Business Description
Micropac Industries Inc manufactures and distributes a range of hybrid microelectronic circuits, solid-state relays (SSRs), power controllers, and optoelectronic components and assemblies. Its products are used as components in a range of military, space, and industrial systems, including aircraft instrumentation and navigation systems, power supplies, electronic controls, computers, medical devices, and high-temperature products. The company's core technology is the packaging and interconnecting of multi-chip microelectronics modules. Other technologies include light-emitting, and light-sensitive materials and products, including light-emitting diodes (LEDs) and silicon phototransistors used in the company's optoelectronic components and assemblies.
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