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China Natural Gas (China Natural Gas) ROA % : 0.94% (As of Sep. 2013)


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What is China Natural Gas ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Natural Gas's annualized Net Income for the quarter that ended in Sep. 2013 was $2.9 Mil. China Natural Gas's average Total Assets over the quarter that ended in Sep. 2013 was $303.5 Mil. Therefore, China Natural Gas's annualized ROA % for the quarter that ended in Sep. 2013 was 0.94%.

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

CHNGQ's ROA % is not ranked *
in the Utilities - Regulated industry.
Industry Median: 2.95
* Ranked among companies with meaningful ROA % only.

China Natural Gas ROA % Historical Data

The historical data trend for China Natural Gas'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.

China Natural Gas ROA % Chart

China Natural Gas Annual Data
Trend Jul03 Jul04 Jul05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.71 11.92 7.74 5.82 3.96

China Natural Gas Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
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 -2.12 7.64 6.38 4.24 0.94

Competitive Comparison of China Natural Gas's ROA %

For the Utilities - Regulated Gas subindustry, China Natural Gas'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.


China Natural Gas's ROA % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, China Natural Gas's ROA % distribution charts can be found below:

* The bar in red indicates where China Natural Gas's ROA % falls into.



China Natural Gas ROA % Calculation

China Natural Gas's annualized ROA % for the fiscal year that ended in Dec. 2012 is calculated as:

ROA %=Net Income (A: Dec. 2012 )/( (Total Assets (A: Dec. 2011 )+Total Assets (A: Dec. 2012 ))/ count )
=11.201/( (276.984+288.501)/ 2 )
=11.201/282.7425
=3.96 %

China Natural Gas's annualized ROA % for the quarter that ended in Sep. 2013 is calculated as:

ROA %=Net Income (Q: Sep. 2013 )/( (Total Assets (Q: Jun. 2013 )+Total Assets (Q: Sep. 2013 ))/ count )
=2.856/( (299.496+307.497)/ 2 )
=2.856/303.4965
=0.94 %

* 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. 2013) net income data. ROA % is displayed in the 30-year financial page.


China Natural Gas  (OTCPK:CHNGQ) 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. 2013 )
=Net Income/Total Assets
=2.856/303.4965
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2.856 / 128.124)*(128.124 / 303.4965)
=Net Margin %*Asset Turnover
=2.23 %*0.4222
=0.94 %

Note: The Net Income data used here is four times the quarterly (Sep. 2013) net income data. The Revenue data used here is four times the quarterly (Sep. 2013) 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.


China Natural Gas ROA % Related Terms

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China Natural Gas (China Natural Gas) Business Description

Traded in Other Exchanges
N/A
Address
35 Tang Yan Road, 19th Floor Building B, Van Metropolis, Hi-Tech Zone, Shaanxi Province, Xian, CHN, 710065
China Natural Gas Inc through its subsidiaries engages in sales & distribution of natural gas and gasoline to commercial, industrial & residential customers, construction of pipeline networks, installation of natural gas fittings & parts for end-users.
Executives
Frank Waung director 72 GREAT HILLS RD., SHORT HILLS NJ 07078
Lawrence W. Leighton director TANG XING SHU MA BUILDING, SUITE 418, TANG XING ROAD, XIAN, SHAANXI PROVINCE F4 710065
Xiaogang Zhu officer: Chief Financial Officer SUITE 909, TOWER B, CHANG AN INTL BLDG, NO. 88 NAN GUAN ZHEN XIE, XI AN CITY, SHAN XI PROVINCE F4 710068

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