ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Wacker Chemie AG's annualizedNet Income for the quarter that ended in Dec. 2023 was €102 Mil.
Wacker Chemie AG's average Total Assets over the quarter that ended in Dec. 2023 was €8,783 Mil. Therefore, Wacker Chemie AG's annualized ROA % for the quarter that ended in Dec. 2023 was 1.17%.
The historical rank and industry rank for Wacker Chemie AG's ROA % or its related term are showing as below:
XTER:WCH'
s ROA % Range Over the Past 10 Years
Min: -9.44 Med: 3.46 Max: 14.27
Current: 3.49
During the past 13 years, Wacker Chemie AG's highest ROA % was 14.27%. The lowest was -9.44%. And the median was 3.46%.
XTER:WCH's ROA % is ranked better than 55.14% of 1567
companies
in the Chemicals industry
Industry Median: 2.9
vs XTER:WCH: 3.49
Wacker Chemie AG ROA % Historical Data
The historical data trend for Wacker Chemie AG'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.
Competitive Comparison of Wacker Chemie AG's ROA %
For the Specialty Chemicals subindustry, Wacker Chemie AG'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.
Wacker Chemie AG's ROA % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Wacker Chemie AG's ROA % distribution charts can be found below:
* The bar in red indicates where Wacker Chemie AG's ROA % falls into.
Wacker Chemie AG ROA % Calculation
Wacker Chemie AG's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
* 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. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Wacker Chemie AG (XTER:WCH) 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 (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.
Wacker Chemie AG ROA % Related Terms
Thank you for viewing the detailed overview of Wacker Chemie AG's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Wacker Chemie AG manufactures and sells chemicals and silicon-based products. The firm organizes itself into four segments based on product type. The Wacker Silicones segment, which generates the most revenue of any segment, sells silicon- and methanol-based products, including durable insulators, lubricants, and sealants. The Wacker Polymers segment provides chemical binders and additives used in construction industry products. The Wacker Biosolutions segment sells chemicals to the pharmaceutical and agrochemical industries. The Wacker Polysilicon segment sells material for solar power and semiconductors. The majority of revenue comes from Europe, China, India, and South Korea.
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