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Equatorial Resources (ASX:EQX) ROA %

: -10.28% (As of Dec. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Equatorial Resources's annualized Net Income for the quarter that ended in Dec. 2022 was A$-1.86 Mil. Equatorial Resources's average Total Assets over the quarter that ended in Dec. 2022 was A$18.06 Mil. Therefore, Equatorial Resources's annualized ROA % for the quarter that ended in Dec. 2022 was -10.28%.

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

ASX:EQX' s ROA % Range Over the Past 10 Years
Min: -64.23   Med: -5.27   Max: 0.62
Current: -11.09

During the past 13 years, Equatorial Resources's highest ROA % was 0.62%. The lowest was -64.23%. And the median was -5.27%.

ASX:EQX's ROA % is ranked worse than
93.69% of 602 companies
in the Steel industry
Industry Median: 3.81 vs ASX:EQX: -11.09

Equatorial Resources ROA % Historical Data

The historical data trend for Equatorial Resources'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.

Equatorial Resources Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.12 0.62 -0.40 -19.48 -64.23

Equatorial Resources Semi-Annual Data
Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22
ROA % 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 Premium Member Only Premium Member Only Premium Member Only -22.96 -16.33 -118.26 -11.86 -10.28

Competitive Comparison

For the Steel subindustry, Equatorial Resources'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.

   

Equatorial Resources ROA % Distribution

For the Steel industry and Basic Materials sector, Equatorial Resources's ROA % distribution charts can be found below:

* The bar in red indicates where Equatorial Resources's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.



Equatorial Resources ROA % Calculation

Equatorial Resources's annualized ROA % for the fiscal year that ended in Jun. 2022 is calculated as:

ROA %=Net Income (A: Jun. 2022 )/( (Total Assets (A: Jun. 2021 )+Total Assets (A: Jun. 2022 ))/ count )
=-17.261/( (35.252+18.497)/ 2 )
=-17.261/26.8745
=-64.23 %

Equatorial Resources's annualized ROA % for the quarter that ended in Dec. 2022 is calculated as:

ROA %=Net Income (Q: Dec. 2022 )/( (Total Assets (Q: Jun. 2022 )+Total Assets (Q: Dec. 2022 ))/ count )
=-1.856/( (18.497+17.621)/ 2 )
=-1.856/18.059
=-10.28 %

* 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. 2022) net income data. ROA % is displayed in the 30-year financial page.


Equatorial Resources  (ASX:EQX) 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. 2022 )
=Net Income/Total Assets
=-1.856/18.059
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-1.856 / 0)*(0 / 18.059)
=Net Margin %*Asset Turnover
=N/A %*0
=-10.28 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2022) net income data. The Revenue data used here is two times the semi-annual (Dec. 2022) 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.


Equatorial Resources ROA % Related Terms

Thank you for viewing the detailed overview of Equatorial Resources's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Equatorial Resources (ASX:EQX) Business Description

Equatorial Resources logo
Traded in Other Exchanges
Address
28 The Esplanade, Level 9, BGC Centre, Perth, WA, AUS, 6000
Equatorial Resources Ltd is an iron ore exploration and development company. The company's iron ore projects are located in the Republic of Congo (ROC). The company focuses on advancing its existing mineral resource assets in Africa, as well as searching for new opportunities in the resources sector. It operates the Badondo Iron Project located in the northwest region of the Republic of Congo. Central & West Africa hosts a regional distribution of undeveloped world-class high-grade iron ore deposits. It is comprised of the same rock type and similar geological formation as the Carajas System in South America.

Equatorial Resources (ASX:EQX) Headlines

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