ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nuveen Diversified Commodity Fund's annualizedNet Income for the quarter that ended in Sep. 2016 was $-11.84 Mil.
Nuveen Diversified Commodity Fund's average Total Assets over the quarter that ended in Sep. 2016 was $97.98 Mil. Therefore, Nuveen Diversified Commodity Fund's annualized ROA % for the quarter that ended in Sep. 2016 was -12.08%.
* 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 Nuveen Diversified Commodity Fund's ROA %
For the Capital Markets subindustry, Nuveen Diversified Commodity Fund'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.
Nuveen Diversified Commodity Fund's ROA % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Nuveen Diversified Commodity Fund's ROA % distribution charts can be found below:
* The bar in red indicates where Nuveen Diversified Commodity Fund's ROA % falls into.
Nuveen Diversified Commodity Fund ROA % Calculation
* 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. 2016) net income data.
ROA % is displayed in the 30-year financial page.
Nuveen Diversified Commodity Fund (AMEX:CFD) 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 (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) 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.
Nuveen Diversified Commodity Fund ROA % Related Terms
Thank you for viewing the detailed overview of Nuveen Diversified Commodity Fund's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Nuveen Diversified Commodity Fund (Nuveen Diversified Commodity Fund) Business Description
Nuveen Diversified Commodity Fund was organized as a Delaware statutory trust on December 7, 2005, to operate as a commodity pool. The Fund commenced operations on September 27, 2010, with its initial public offering. Prior to the initial public offering, the Fund was inactive except for matters relating to its organization and registration. The Fund's investment objective is to generate higher risk-adjusted total return than commodity market benchmarks. In pursuing its investment objective, the Fund invests in a diversified portfolio of commodity futures and forward contracts to obtain broad exposure to all principal groups in the commodity markets.
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