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Internet America (Internet America) ROA % : 1.91% (As of Mar. 2015)


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What is Internet America ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Internet America's annualized Net Income for the quarter that ended in Mar. 2015 was $0.32 Mil. Internet America's average Total Assets over the quarter that ended in Mar. 2015 was $16.59 Mil. Therefore, Internet America's annualized ROA % for the quarter that ended in Mar. 2015 was 1.91%.

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

GEEK's ROA % is not ranked *
in the Telecommunication Services industry.
Industry Median: 2.555
* Ranked among companies with meaningful ROA % only.

Internet America ROA % Historical Data

The historical data trend for Internet America'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.

Internet America ROA % Chart

Internet America Annual Data
Trend Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.81 -4.89 10.80 54.19 43.64

Internet America Quarterly Data
Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
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 6.65 146.69 1.63 2.83 1.91

Competitive Comparison of Internet America's ROA %

For the Telecom Services subindustry, Internet America'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.


Internet America's ROA % Distribution in the Telecommunication Services Industry

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

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



Internet America ROA % Calculation

Internet America's annualized ROA % for the fiscal year that ended in Jun. 2014 is calculated as:

ROA %=Net Income (A: Jun. 2014 )/( (Total Assets (A: Jun. 2013 )+Total Assets (A: Jun. 2014 ))/ count )
=5.907/( (10.413+16.657)/ 2 )
=5.907/13.535
=43.64 %

Internet America's annualized ROA % for the quarter that ended in Mar. 2015 is calculated as:

ROA %=Net Income (Q: Mar. 2015 )/( (Total Assets (Q: Dec. 2014 )+Total Assets (Q: Mar. 2015 ))/ count )
=0.316/( (16.512+16.661)/ 2 )
=0.316/16.5865
=1.91 %

* 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 (Mar. 2015) net income data. ROA % is displayed in the 30-year financial page.


Internet America  (GREY:GEEK) 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: Mar. 2015 )
=Net Income/Total Assets
=0.316/16.5865
=(Net Income / Revenue)*(Revenue / Total Assets)
=(0.316 / 0)*(0 / 16.5865)
=Net Margin %*Asset Turnover
=N/A %*0
=1.91 %

Note: The Net Income data used here is four times the quarterly (Mar. 2015) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


Internet America ROA % Related Terms

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Internet America (Internet America) Business Description

Traded in Other Exchanges
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Address
Internet America Inc is an internet service provider focusing on providing high-speed broadband internet in rural underserved and non-served markets. It offers broadband internet services to customers within its network footprint, focusing on rural, residential markets. The company installs wireless internet service in communities and rural areas that have little or no access to alternative broadband solutions. In addition, it also offers internet services tailored to meet the needs of both residential and business subscribers. Its primary service offerings include broadband Internet delivered wirelessly and over DSL, and dial-up Internet access. Geographically it operates through the region of US and derives substantially all of its revenues from internet access services and related fees.

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