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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Equitrans Midstream's annualized Net Income for the quarter that ended in Dec. 2023 was $595 Mil. Equitrans Midstream's average Total Assets over the quarter that ended in Dec. 2023 was $11,371 Mil. Therefore, Equitrans Midstream's annualized ROA % for the quarter that ended in Dec. 2023 was 5.24%.
The historical rank and industry rank for Equitrans Midstream's ROA % or its related term are showing as below:
During the past 9 years, Equitrans Midstream's highest ROA % was 4.10%. The lowest was -11.96%. And the median was 0.53%.
The historical data trend for Equitrans Midstream'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.
Equitrans Midstream Annual Data | |||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||||||
ROA % | Get a 7-Day Free Trial | -1.81 | 3.42 | -11.96 | -2.53 | 4.02 |
Equitrans Midstream 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 | 3.10 | 3.90 | 2.55 | 4.69 | 5.24 |
For the Oil & Gas Midstream subindustry, Equitrans Midstream'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.
For the Oil & Gas industry and Energy sector, Equitrans Midstream's ROA % distribution charts can be found below:
* The bar in red indicates where Equitrans Midstream's ROA % falls into.
Equitrans Midstream's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
ROA % | = | Net Income (A: Dec. 2023 ) | / | ( (Total Assets (A: Dec. 2022 ) | + | Total Assets (A: Dec. 2023 )) | / count ) |
= | 445.229 | / | ( (10445.585 | + | 11709.426) | / 2 ) | |
= | 445.229 | / | 11077.5055 | ||||
= | 4.02 % |
Equitrans Midstream'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 ) |
= | 595.48 | / | ( (11032.657 | + | 11709.426) | / 2 ) | |
= | 595.48 | / | 11371.0415 | ||||
= | 5.24 % |
* 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.
Equitrans Midstream (NYSE:ETRN) 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: Dec. 2023 ) | ||
= | Net Income | / | Total Assets |
= | 595.48 | / | 11371.0415 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (595.48 / 1442.436) | * | (1442.436 / 11371.0415) |
= | Net Margin % | * | Asset Turnover |
= | 41.28 % | * | 0.1269 |
= | 5.24 % |
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.
Thank you for viewing the detailed overview of Equitrans Midstream's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vicky A Bailey | director | 2099 PENNSYLVANIA AVNUE, NW, SUITE 1000, WASHINGTON DC 20006 |
Kirk R Oliver | officer: Sr VP & CFO | 1601 BRYAN STREET, DALLAS TX 75201 |
Stephen M Moore | officer: Sr VP & General Counsel | 2200 ENERGY DRIVE, CANONSBURG PA 15317 |
Thomas F Karam | officer: President & CEO | C/O SOUTHERN UNION CO, ONE PEI CENTER, WILKES BARRE PA 18711-0601 |
Patricia K Collawn | director | 414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289 |
Kenneth Michael Burke | director | 11742 RIVERVIEW DRIVE, HOUSTON TX 77007 |
Diana M Charletta | officer: EVP & Chief Operating Officer | 2200 ENERGY DRIVE, CANONSBURG PA 15317 |
Sarah Morrison Barpoulis | director | SOUTH JERSEY INDUSTRIES, 1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037 |
D Mark Leland | director | 333 CLAY STREET, SUITE 2400, HOUSTON TX 77002 |
Margaret K Dorman | director | C/O SMITH INTERNATIONAL INC, PO BOX 60068, HOUSTON TX 77205 |
Brian P. Pietrandrea | officer: Controller | 2200 ENERGY DRIVE, CANONSBURG PA 15317 |
David L Porges | director | 700 UNIVERSE BLVD, C/O NEXTERA ENERGY, INC., JUNO BEACH FL 33408 |
Robert F Vagt | director | 5300 MEMORIAL DR, STE 800, HOUSTON TX 77007 |
Phillip D. Swisher | officer: VP & Chief Accounting Officer | 625 LIBERTY AVENUE, SUITE 2000, PITTSBURGH PA 15222 |
Norman J Szydlowski | director | 6120 S. YALE, SUITE 700, TULSA OK 74136 |
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