Cornerstone Building Brands (NYSE:CNR) ROA %

: 6.90% (As of Mar. 2022)

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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Cornerstone Building Brands's annualized Net Income for the quarter that ended in Mar. 2022 was $409 Mil. Cornerstone Building Brands's average Total Assets over the quarter that ended in Mar. 2022 was $5,930 Mil. Therefore, Cornerstone Building Brands's annualized ROA % for the quarter that ended in Mar. 2022 was 6.90%.

The historical rank and industry rank for Cornerstone Building Brands's ROA % or its related term are showing as below:

CNR's ROA % is not ranked ^*
in the Construction industry.
Industry Median: 2.50
* Ranked among companies with meaningful ROA % only.

Cornerstone Building Brands ROA % Historical Data

The historical data trend for Cornerstone Building Brands'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.

Cornerstone Building Brands Annual Data

Trend

Oct12

Oct13

Oct14

Oct15

Oct16

Oct17

Oct18

Dec19

Dec20

Dec21

ROA %

5.26

5.89

-0.46

-8.74

11.78

Cornerstone Building Brands Quarterly Data
	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
ROA %																-0.12	0.66	45.19	2.63	6.90

Competitive Comparison

For the Building Products & Equipment subindustry, Cornerstone Building Brands'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.

Annual Data Quarterly Data

Cornerstone Building Brands ROA % Distribution

For the Construction industry and Industrials sector, Cornerstone Building Brands's ROA % distribution charts can be found below:

* The bar in red indicates where Cornerstone Building Brands's ROA % falls into.

Cornerstone Building Brands ROA % Calculation

Cornerstone Building Brands's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %	=	Net Income (A: Dec. 2021 )	/	( (Total Assets (A: Dec. 2020 )	+	Total Assets (A: Dec. 2021 ))	/ count )
	=	665.859	/	( (5478.49	+	5827.46)	/ 2 )
	=	665.859	/	5652.975
	=	11.78 %

Cornerstone Building Brands's annualized ROA % for the quarter that ended in Mar. 2022 is calculated as:

ROA %	=	Net Income (Q: Mar. 2022 )	/	( (Total Assets (Q: Dec. 2021 )	+	Total Assets (Q: Mar. 2022 ))	/ count )
	=	409.132	/	( (5827.46	+	6031.656)	/ 2 )
	=	409.132	/	5929.558
	=	6.90 %

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

Cornerstone Building Brands (NYSE:CNR) 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:

	ROA %		(Q: Mar. 2022 )
=	Net Income	/	Total Assets
=	409.132	/	5929.558
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(409.132 / 6267.352)	*	(6267.352 / 5929.558)
=	Net Margin %	*	Asset Turnover
=	6.53 %	*	1.057
=	6.90 %

Note: The Net Income data used here is four times the quarterly (Mar. 2022) net income data. The Revenue data used here is four times the quarterly (Mar. 2022) revenue data.

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.

Cornerstone Building Brands ROA % Related Terms

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Cornerstone Building Brands (NYSE:CNR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Cornerstone Building Brands Inc (NYSE:CNR) » Definitions » ROA %

Comparable Companies

Traded in Other Exchanges

N/A

Address

5020 Weston Parkway, Suite 400, Cary, NC, USA, 27513

Website

https://www.cornerstonebuildingbrands.com

Cornerstone Building Brands Inc constructs and sells building materials for the commercial, residential, and repair industries in North America. The company operates in three segments: commercial, which provides metal products and coil coating services for commercial construction; siding, which offers vinyl and steel siding, aluminum coil and gutters, roofing accessories, moldings, window and door trim, rain removal systems, vents, fences, and railings; and windows, which includes vinyl, aluminum, and wooden windows as well as steel, wood, and fiberglass doors. All three segments contribute sizably to total revenue.

Executives

Rose Lee	director, officer: PRESIDENT & CEO	C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
Judith A Reinsdorf	director	C. R. BARD, INC., 730 CENTRAL AVENUE, MURRAY HILL NJ 07974
Alena Brenner	officer: EVP, GC and Corp. Sec.	5020 WESTON PARKWAY, SUITE 400 CARY NC 27513
Jeffrey S. Lee	officer: EVP, CFO	5020 WESTON PARKWAY, SUITE 400 CARY NC 27513
Katy Theroux	officer: Executive VP, Chief HR Officer	10943 N. SAM HOUSTON PARKWAY W. HOUSTON TX 77056
Daniel C. Janki	director	5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Timothy J. Obrien	director	C/O NCI BUILDING SYSTEMS, INC. 10943 NORTH SAM HOUSTON PARKWAY WEST HOUSTON TX 77064
George L. Ball	director	10943 N. SAM HOUSTON PARKWAY W., HOUSTON TX 77064
William E Jackson	director	ONE NEENAH CENTER, 4TH FLOOR P.O. BOX 669 NEENAH WI 54957
Kathleen J Affeldt	director
John J Holland	director	26602 W. GREENTREE, OLATHE KS 66061
James Keppler	officer: EVP, OPERATIONS	5020 WESTON PARKWAY SUITE 400 CARY NC 27513
James Wilbert W Jr	director	16100 SOUTH LATHROP AVENUE, HARVEY IL 60426
Wayne Irmiter	officer: SVP, CAO	5020 WESTON PARKWAY CAY NC 27513
Atrium Window Holdings, Llc	10 percent owner	C/O GOLDEN GATE PRIVATE EQUITY, INC. 1 EMBARCADERO CENTER SAN FRANCISCO CA 94111