GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » StarHub Ltd (OTCPK:SRHBY) » Definitions » ROA %

StarHub (StarHub) ROA % : 4.88% (As of Dec. 2023)


View and export this data going back to 2008. Start your Free Trial

What is StarHub ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. StarHub's annualized Net Income for the quarter that ended in Dec. 2023 was $109 Mil. StarHub's average Total Assets over the quarter that ended in Dec. 2023 was $2,241 Mil. Therefore, StarHub's annualized ROA % for the quarter that ended in Dec. 2023 was 4.88%.

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

SRHBY' s ROA % Range Over the Past 10 Years
Min: 1.95   Med: 7.28   Max: 19.15
Current: 4.91

During the past 13 years, StarHub's highest ROA % was 19.15%. The lowest was 1.95%. And the median was 7.28%.

SRHBY's ROA % is ranked better than
69.41% of 389 companies
in the Telecommunication Services industry
Industry Median: 2.58 vs SRHBY: 4.91

StarHub ROA % Historical Data

The historical data trend for StarHub'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.

StarHub ROA % Chart

StarHub Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.95 5.62 4.78 1.96 4.89

StarHub Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 5.08 3.72 0.08 5.04 4.88

Competitive Comparison of StarHub's ROA %

For the Telecom Services subindustry, StarHub'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.


StarHub's ROA % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, StarHub's ROA % distribution charts can be found below:

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



StarHub ROA % Calculation

StarHub's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=112.304/( (2318.316+2278.433)/ 2 )
=112.304/2298.3745
=4.89 %

StarHub's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Jun. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=109.452/( (2203.387+2278.433)/ 2 )
=109.452/2240.91
=4.88 %

* 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 two times the semi-annual (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


StarHub  (OTCPK:SRHBY) 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: Dec. 2023 )
=Net Income/Total Assets
=109.452/2240.91
=(Net Income / Revenue)*(Revenue / Total Assets)
=(109.452 / 1902.26)*(1902.26 / 2240.91)
=Net Margin %*Asset Turnover
=5.75 %*0.8489
=4.88 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 2023) 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.


StarHub ROA % Related Terms

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


StarHub (StarHub) Business Description

Traded in Other Exchanges
Address
67 Ubi Avenue 1, No. 05-01 StarHub Green, Singapore, SGP, 408942
StarHub is one of three main telecommunications providers in Singapore offering products covering mobile, broadband, fixed voice, and pay television. StarHub operates a mobile network. The company's fixed network spans domestic and international backhaul. It used to reach residential premises with a hybrid fiber-coaxial network, which has now been replaced with the National Broadband Network. The Singapore government retains an indirect 57% stake through Temasek Holdings, while NTT Communications also holds a strategic 10% stake.

StarHub (StarHub) Headlines

From GuruFocus

Full Year 2020 StarHub Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q3 2020 StarHub Ltd Business Update Call Transcript

By GuruFocus Research 02-15-2024

Half Year 2019 StarHub Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q1 2021 StarHub Ltd Business Update Call Transcript

By GuruFocus Research 02-15-2024

Full Year 2022 StarHub Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Half Year 2022 StarHub Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q1 2019 StarHub Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024