ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Chelverton UK Dividend Trust's annualizedNet Income for the quarter that ended in Oct. 2023 was £-13.92 Mil.
Chelverton UK Dividend Trust's average Total Assets over the quarter that ended in Oct. 2023 was £49.81 Mil. Therefore, Chelverton UK Dividend Trust's annualized ROA % for the quarter that ended in Oct. 2023 was -27.95%.
The historical rank and industry rank for Chelverton UK Dividend Trust's ROA % or its related term are showing as below:
LSE:SDV'
s ROA % Range Over the Past 10 Years
Min: -30.94 Med: 4.01 Max: 44.08
Current: -5.23
During the past 13 years, Chelverton UK Dividend Trust's highest ROA % was 44.08%. The lowest was -30.94%. And the median was 4.01%.
LSE:SDV's ROA % is ranked worse than 82.38% of 1714
companies
in the Asset Management industry
Industry Median: 2.89
vs LSE:SDV: -5.23
Chelverton UK Dividend Trust ROA % Historical 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.
Competitive Comparison of Chelverton UK Dividend Trust's ROA %
For the Asset Management subindustry, Chelverton UK Dividend Trust'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.
Chelverton UK Dividend Trust's ROA % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Chelverton UK Dividend Trust's ROA % distribution charts can be found below:
* The bar in red indicates where Chelverton UK Dividend Trust's ROA % falls into.
* 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 (Oct. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Chelverton UK Dividend Trust (LSE:SDV) 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 two times the semi-annual (Oct. 2023) net income data. The Revenue data used here is two times the semi-annual (Oct. 2023) 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.
Chelverton UK Dividend Trust ROA % Related Terms
Thank you for viewing the detailed overview of Chelverton UK Dividend Trust's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chelverton UK Dividend Trust (LSE:SDV) Business Description
Chelverton UK Dividend Trust PLC is a closed-ended investment trust. The principal activity of the Company is to carry on business as an investment trust. The Company is engaged in a single segment of business, being investment business. The company focuses on private clients, financial intermediaries, institutional investors and family offices. Its investment objective is to provide ordinary shareholders with a high income and opportunity for capital growth, having a capital return sufficient to repay the full final capital entitlement of the Zero Dividend Preference shares. The company invests in various sectors such as Support and Financial Services, Travel and Leisure, General Retailer, Household Goods and Home Construction, Industrial Engineering and others.
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