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System Research Co (TSE:3771) ROA % : 15.74% (As of Dec. 2023)


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What is System Research Co ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. System Research Co's annualized Net Income for the quarter that ended in Dec. 2023 was 円2,304 Mil. System Research Co's average Total Assets over the quarter that ended in Dec. 2023 was 円14,637 Mil. Therefore, System Research Co's annualized ROA % for the quarter that ended in Dec. 2023 was 15.74%.

The historical rank and industry rank for System Research Co's ROA % or its related term are showing as below:

TSE:3771' s ROA % Range Over the Past 10 Years
Min: 6.51   Med: 9.32   Max: 15.11
Current: 15.11

During the past 13 years, System Research Co's highest ROA % was 15.11%. The lowest was 6.51%. And the median was 9.32%.

TSE:3771's ROA % is ranked better than
91.11% of 2823 companies
in the Software industry
Industry Median: 1.01 vs TSE:3771: 15.11

System Research Co ROA % Historical Data

The historical data trend for System Research Co'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.

System Research Co ROA % Chart

System Research Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.19 12.23 9.95 12.39 11.83

System Research Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 15.18 18.68 10.71 15.35 15.74

Competitive Comparison of System Research Co's ROA %

For the Software - Application subindustry, System Research Co'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.


System Research Co's ROA % Distribution in the Software Industry

For the Software industry and Technology sector, System Research Co's ROA % distribution charts can be found below:

* The bar in red indicates where System Research Co's ROA % falls into.



System Research Co ROA % Calculation

System Research Co's annualized ROA % for the fiscal year that ended in Mar. 2023 is calculated as:

ROA %=Net Income (A: Mar. 2023 )/( (Total Assets (A: Mar. 2022 )+Total Assets (A: Mar. 2023 ))/ count )
=1601.559/( (12884.657+14181.759)/ 2 )
=1601.559/13533.208
=11.83 %

System Research Co's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=2303.72/( (14335.498+14938.339)/ 2 )
=2303.72/14636.9185
=15.74 %

* 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 (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


System Research Co  (TSE:3771) 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. 2023 )
=Net Income/Total Assets
=2303.72/14636.9185
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2303.72 / 23727.94)*(23727.94 / 14636.9185)
=Net Margin %*Asset Turnover
=9.71 %*1.6211
=15.74 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 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.


System Research Co ROA % Related Terms

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System Research Co (TSE:3771) Business Description

Traded in Other Exchanges
N/A
Address
2-12, Iwatsukahon-tori, Nakamura-ku, Nagoya, JPN, 453-0861
System Research Co., Ltd is a software application service provider in Japan. The business of the company includes SI service operations, outsourcing business, web related business, software development work, software product business, and product sales.

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