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National Australia Bank (ASX:NABPH.PFD) ROA %

: 0.65% (As of Sep. 2023)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. National Australia Bank's annualized Net Income for the quarter that ended in Sep. 2023 was A$6,894.00 Mil. National Australia Bank's average Total Assets over the quarter that ended in Sep. 2023 was A$1,053,685.50 Mil. Therefore, National Australia Bank's annualized ROA % for the quarter that ended in Sep. 2023 was 0.65%.

The historical rank and industry rank for National Australia Bank's ROA % or its related term are showing as below:

ASX:NABPH.PFD' s ROA % Range Over the Past 10 Years
Min: 0.04   Med: 0.69   Max: 0.71
Current: 0.7

During the past 13 years, National Australia Bank's highest ROA % was 0.71%. The lowest was 0.04%. And the median was 0.69%.

ASX:NABPH.PFD's ROA % is ranked worse than
63.08% of 1468 companies
in the Banks industry
Industry Median: 0.92 vs ASX:NABPH.PFD: 0.70

National Australia Bank ROA % Historical Data

The historical data trend for National Australia Bank'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.

National Australia Bank Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.58 0.30 0.71 0.70 0.70

National Australia Bank Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 0.70 0.75 0.66 0.75 0.65

Competitive Comparison

For the Banks - Diversified subindustry, National Australia Bank'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.


National Australia Bank ROA % Distribution

For the Banks industry and Financial Services sector, National Australia Bank's ROA % distribution charts can be found below:

* The bar in red indicates where National Australia Bank's ROA % falls into.



National Australia Bank ROA % Calculation

National Australia Bank's annualized ROA % for the fiscal year that ended in Sep. 2023 is calculated as:

ROA %=Net Income (A: Sep. 2023 )/( (Total Assets (A: Sep. 2022 )+Total Assets (A: Sep. 2023 ))/ count )
=7414/( (1055126+1059083)/ 2 )
=7414/1057104.5
=0.70 %

National Australia Bank's annualized ROA % for the quarter that ended in Sep. 2023 is calculated as:

ROA %=Net Income (Q: Sep. 2023 )/( (Total Assets (Q: Mar. 2023 )+Total Assets (Q: Sep. 2023 ))/ count )
=6894/( (1048288+1059083)/ 2 )
=6894/1053685.5
=0.65 %

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


National Australia Bank  (ASX:NABPH.PFD) 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: Sep. 2023 )
=Net Income/Total Assets
=6894/1053685.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(6894 / 20088)*(20088 / 1053685.5)
=Net Margin %*Asset Turnover
=34.32 %*0.0191
=0.65 %

Note: The Net Income data used here is two times the semi-annual (Sep. 2023) net income data. The Revenue data used here is two times the semi-annual (Sep. 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.


National Australia Bank ROA % Related Terms

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National Australia Bank (ASX:NABPH.PFD) Business Description

Address
395 Bourke Street, Level 28, Melbourne, VIC, AUS, 3000
National Australia Bank is the most business-focused of the four major banks, holding the largest share of business loans and the number-three spot in home loans. National Australia Bank is currently the third-largest bank by market capitalization, with the franchise covering consumer, small business, corporate, and institutional sectors. Under the UBank brand the bank also owns one of Australia's largest digital-only banks. Offshore operations in New Zealand round out the group.

National Australia Bank (ASX:NABPH.PFD) Headlines

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