ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. StanCorp Financial Group's annualizedNet Income for the quarter that ended in Dec. 2015 was $154 Mil.
StanCorp Financial Group's average Total Assets over the quarter that ended in Dec. 2015 was $23,028 Mil. Therefore, StanCorp Financial Group's annualized ROA % for the quarter that ended in Dec. 2015 was 0.67%.
The historical rank and industry rank for StanCorp Financial Group's ROA % or its related term are showing as below:
SFG's ROA % is not ranked *
in the Insurance industry.
Industry Median: 1.97 * Ranked among companies with meaningful ROA % only.
* 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.
Competitive Comparison of StanCorp Financial Group's ROA %
For the Insurance - Life subindustry, StanCorp Financial Group'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.
StanCorp Financial Group's ROA % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, StanCorp Financial Group's ROA % distribution charts can be found below:
* The bar in red indicates where StanCorp Financial Group's ROA % falls into.
StanCorp Financial Group ROA % Calculation
StanCorp Financial Group's annualized ROA % for the fiscal year that ended in Dec. 2015 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 (Dec. 2015) net income data.
ROA % is displayed in the 30-year financial page.
StanCorp Financial Group (NYSE:SFG) 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 (Dec. 2015) net income data. The Revenue data used here is four times the quarterly (Dec. 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.
StanCorp Financial Group ROA % Related Terms
Thank you for viewing the detailed overview of StanCorp Financial Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
StanCorp Financial Group (StanCorp Financial Group) Business Description
StanCorp Financial Group Inc was incorporated in 1998 in Oregon. It is a holding company and conducts business through wholly-owned operating subsidiaries throughout the United States. Through its subsidiaries, they have the authority to underwrite insurance products in all 50 states as well as the District of Columbia and the U.S. territories of Guam and the Virgin Islands. It operates through two segments: Insurance Services and Asset Management. Insurance Services contains two reportable product segments, Employee Benefits and Individual Disability. Insurance Services is comprised of its Employee Benefits and Individual Disability segments, and offers group life and AD&D insurance, group and individual disability insurance, group dental and group vision insurance, and absence management services to individuals and employer groups ranging in size from two lives to 167,000 lives. The Company has approximately 43,000 group insurance policies in force, covering approximately 6.2 million employees as of December 31, 2013. Group life insurance products provide coverage to insured employees for a specified period and have no cash value (amount of cash available to an insured employee on the surrender of, or withdrawal from, the life insurance policy). Coverage is offered to insured employees and their dependents. AD&D insurance is usually provided in conjunction with group life insurance, and is payable after the accidental death or dismemberment of the insured in an amount based on the face amount of the policy or dismemberment schedule. The Asset Management segment offers full-service 401(k) plans, 403(b) plans, 457 plans, defined benefit plans, money purchase pension plans, profit sharing plans and non-qualified deferred compensation products and services. This segment also offers investment advisory and management services, financial planning services, origination and servicing of fixed-rate commercial mortgage loans, individual fixed-rate annuity products, group annuity contracts and retirement plan trust products. The Company reports its holding company and corporate activities in the Other category. This category includes return on capital not allocated to the product segments, holding company expenses, operations of certain unallocated subsidiaries, interest on debt, unallocated expenses, net capital gains and losses related to the impairment or the disposition of its invested assets and adjustments made in consolidation. Competition for the sale of its products comes primarily from other insurers and financial services companies such as banks, broker-dealers, mutual funds, and managed care providers for employer groups, individual consumers and distributors. The Company's insurance products are regulated by the jurisdictions in which they sell their products including all 50 states, the District of Columbia, the U.S. territories of Guam and the Virgin Islands.
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