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PMC-Sierra (PMC-Sierra) ROA % : 3.27% (As of Sep. 2015)


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What is PMC-Sierra ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. PMC-Sierra's annualized Net Income for the quarter that ended in Sep. 2015 was $26.9 Mil. PMC-Sierra's average Total Assets over the quarter that ended in Sep. 2015 was $823.0 Mil. Therefore, PMC-Sierra's annualized ROA % for the quarter that ended in Sep. 2015 was 3.27%.

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

PMCS's ROA % is not ranked *
in the Semiconductors industry.
Industry Median: 2.465
* Ranked among companies with meaningful ROA % only.

PMC-Sierra ROA % Historical Data

The historical data trend for PMC-Sierra'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.

PMC-Sierra ROA % Chart

PMC-Sierra Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.77 4.83 -27.67 -3.69 0.01

PMC-Sierra 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 2.71 1.09 2.20 -4.16 3.27

Competitive Comparison of PMC-Sierra's ROA %

For the Semiconductors subindustry, PMC-Sierra'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.


PMC-Sierra's ROA % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, PMC-Sierra's ROA % distribution charts can be found below:

* The bar in red indicates where PMC-Sierra's ROA % falls into.



PMC-Sierra ROA % Calculation

PMC-Sierra'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 )
=0.082/( (849.951+869.085)/ 2 )
=0.082/859.518
=0.01 %

PMC-Sierra'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 )
=26.872/( (824.55+821.504)/ 2 )
=26.872/823.027
=3.27 %

* 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.


PMC-Sierra  (NAS:PMCS) 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
=26.872/823.027
=(Net Income / Revenue)*(Revenue / Total Assets)
=(26.872 / 534.296)*(534.296 / 823.027)
=Net Margin %*Asset Turnover
=5.03 %*0.6492
=3.27 %

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.


PMC-Sierra ROA % Related Terms

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PMC-Sierra (PMC-Sierra) Business Description

Traded in Other Exchanges
N/A
Address
PMC-Sierra Inc was incorporated in the state of California in 1983 and reincorporated in the state of Delaware in 1997. The Company is a semiconductor and and software solution provider transforming networks that connect, move and store digital content. It designs, develops, markets and supports semiconductor solutions by integrating its mixed-signal, software and systems expertise through a network of offices in North America, Europe and Asia. The Company has approximately 700 different semiconductor devices that are sold to equipment and design manufacturers, who in turn supply their equipment principally to service providers, carriers and enterprises globally. The Company provides semiconductor solutions for its customers by leveraging its intellectual property, design expertise and systems knowledge across a range of applications and industry protocols. The Company derives its net revenues from the following operating segments: Communication Products, Enterprise Storage Products, Microprocessor Products, and Broadband Wireless Products. The Company operates in one reportable segment-semiconductor solutions for communications network infrastructure. Its semiconductor devices enable networking equipment primarily in the following three end market segments: Storage, Optical and Mobile networks. The Storage market segment is made up of enterprise storage equipment manufacturers and covers two broad areas: server storage, and stand-alone external storage systems. The Optical market segment refers to infrastructure suppliers of transport and access networks that use optical transport protocol and/or physical optical medium. The Mobile market segment is mainly infrastructure equipment suppliers, including base station and backhaul equipment, supporting the wireless transmission of content from and to mobile hand devices. The Company faces competition at the customer design stage when its customers are determining which semiconductor components to use in its equipment designs. The Company competes against peer-group semiconductor companies that engage in the communications and storage semiconductor business. These companies include the following: Altera Corp., Applied Micro Circuits Corp.; Broadcom Corp.; Cortina Systems, Inc.; Emulex Corp.; Exar Corp.; Infineon Technologies AG; Intel Corp.; Texas Instrument Inc; LSI Corp.; Maxim Integrated Products, Inc.; Marvell Technology Group Ltd.; Mindspeed Technologies, Inc.; QLogic Corp.; Vitesse Semiconductor; and Xilinx, Inc. The Company has a total of 597 U.S. and 80 foreign patents for circuit designs and other innovations used in the design and architecture of its products. In addition, it has 95 patent applications pending in the U.S. Patent and Trademark office. The Company's business is subject to or may be impacted by various environmental protection and social responsibility legal and customer requirements.
Executives
Alinka Flaminia officer: VP, General Counsel Corp. Sec. 3975 FREEDOM CIRCLE, SANTA CLARA CA 95054
David M Fein officer: VP of Worldwide Sales 1380 BORDEAUX DRIVE, SUNNYVALE CA 94089
William Kurtz director NOVELLUS SYSTEMS, INC., 4000 NORTH FIRST STREET, SAN JOSE CA 95134
Richard Belluzzo director C/O QUANTUM CORP, 501 SYCAORE DR, MILPITAS CA 95035
Gregory S Lang director, officer: President and CEO C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138
Michael Farese director 6290 SEQUENCE DRIVE, SAN DIEGO CA 92121
Michael Klayko director
Richard N Nottenburg director 1303 EAST ALGONQUIN ROAD, SCHAUMBURG IL 60196
Jonathan Judge director 895 EMERSON STREET, PALO ALTO CA 94301
Ralph V Whitworth 10 percent owner RELATIONAL INVESTORS LLC, 12400 HIGH BLUFF DRIVE, SUITE 600, SAN DIEGO CA 92130
Relational Investors Llc 10 percent owner 12400 HIGH BLUFF DRIVE, SUITE 600, SAN DIEGO CA 92130
Kirt P Karros director, 10 percent owner 12400 HIGH BLUFF DR. SUITE 600, SAN DIEGO CA 92130
James Diller other: Former Director 1001 MURPHY RANCH ROAD, MILPITAS CA 95035
Michael W Zellner other: Former VP Finance C/O CYAN, INC., 1383 N. MCDOWELL BLVD., SUITE 300, PETALUMA CA 94954
Frank Marshall other: Former Director 3975 FREEDOM CIRCLE, C/O PMC SIERRA INC, SANTA CLARA CA 95054

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