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Impax Asian Environmental Markets (LSE:IAEM) ROA % : 14.43% (As of Dec. 2012)


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What is Impax Asian Environmental Markets ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Impax Asian Environmental Markets's annualized Net Income for the quarter that ended in Dec. 2012 was £30.67 Mil. Impax Asian Environmental Markets's average Total Assets over the quarter that ended in Dec. 2012 was £212.60 Mil. Therefore, Impax Asian Environmental Markets's annualized ROA % for the quarter that ended in Dec. 2012 was 14.43%.

The historical rank and industry rank for Impax Asian Environmental Markets's ROA % or its related term are showing as below:

LSE:IAEM's ROA % is not ranked *
in the Asset Management industry.
Industry Median: 3.775
* Ranked among companies with meaningful ROA % only.

Impax Asian Environmental Markets ROA % Historical Data

The historical data trend for Impax Asian Environmental Markets'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.

Impax Asian Environmental Markets ROA % Chart

Impax Asian Environmental Markets Annual Data
Trend Jun10 Jun11 Jun12
ROA %
10.27 0.93 -27.38

Impax Asian Environmental Markets Semi-Annual Data
Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12
ROA % Get a 7-Day Free Trial 32.28 -22.80 -53.49 -0.50 14.43

Competitive Comparison of Impax Asian Environmental Markets's ROA %

For the Asset Management subindustry, Impax Asian Environmental Markets'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.


Impax Asian Environmental Markets's ROA % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Impax Asian Environmental Markets's ROA % distribution charts can be found below:

* The bar in red indicates where Impax Asian Environmental Markets's ROA % falls into.



Impax Asian Environmental Markets ROA % Calculation

Impax Asian Environmental Markets's annualized ROA % for the fiscal year that ended in Jun. 2012 is calculated as:

ROA %=Net Income (A: Jun. 2012 )/( (Total Assets (A: Jun. 2011 )+Total Assets (A: Jun. 2012 ))/ count )
=-66.094/( (273.18+209.69)/ 2 )
=-66.094/241.435
=-27.38 %

Impax Asian Environmental Markets's annualized ROA % for the quarter that ended in Dec. 2012 is calculated as:

ROA %=Net Income (Q: Dec. 2012 )/( (Total Assets (Q: Jun. 2012 )+Total Assets (Q: Dec. 2012 ))/ count )
=30.672/( (209.69+215.502)/ 2 )
=30.672/212.596
=14.43 %

* 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 two times the semi-annual (Dec. 2012) net income data. ROA % is displayed in the 30-year financial page.


Impax Asian Environmental Markets  (LSE:IAEM) 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: Dec. 2012 )
=Net Income/Total Assets
=30.672/212.596
=(Net Income / Revenue)*(Revenue / Total Assets)
=(30.672 / 34.446)*(34.446 / 212.596)
=Net Margin %*Asset Turnover
=89.04 %*0.162
=14.43 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2012) net income data. The Revenue data used here is two times the semi-annual (Dec. 2012) 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.


Impax Asian Environmental Markets ROA % Related Terms

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Impax Asian Environmental Markets Business Description

Traded in Other Exchanges
N/A
Address
Impax Asian Environmental Markets PLC is an investment company. Its investment objective is to generate long-term capital growth through investment in a diverse portfolio of companies in the markets for cleaner or more efficient delivery of basic services of energy, water and waste in the Asia Pacific Region.

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