GURUFOCUS.COM » STOCK LIST » USA » NYSE » General American Investors Company Inc (NYSE:GAMpB.PFD) » Definitions » ROA %
Switch to:

General American Investors Company (NYSE:GAMpB.PFD) ROA %

: -35.58% (As of Jun. 2022)
View and export this data going back to 2003. Start your Free Trial

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. General American Investors Company's annualized Net Income for the quarter that ended in Jun. 2022 was $-482.89 Mil. General American Investors Company's average Total Assets over the quarter that ended in Jun. 2022 was $1,357.36 Mil. Therefore, General American Investors Company's annualized ROA % for the quarter that ended in Jun. 2022 was -35.58%.

The historical rank and industry rank for General American Investors Company's ROA % or its related term are showing as below:

GAMpB.PFD' s ROA % Range Over the Past 10 Years
Min: -6.01   Med: 10.25   Max: 24.71
Current: -8.7

During the past 6 years, General American Investors Company's highest ROA % was 24.71%. The lowest was -6.01%. And the median was 10.25%.

GAMpB.PFD's ROA % is ranked worse than
73.76% of 1711 companies
in the Asset Management industry
Industry Median: -0.85 vs GAMpB.PFD: -8.70

General American Investors Company (NYSE:GAMpB.PFD) ROA % Historical Data

The historical data trend for General American Investors Company'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.

General American Investors Company Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA % Premium Member Only 13.63 -6.01 24.71 5.92 20.94

General American Investors Company Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -20.09 32.49 25.07 16.34 -35.58

General American Investors Company (NYSE:GAMpB.PFD) ROA % Competitive Comparison

For the Asset Management subindustry, General American Investors Company'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.

   

General American Investors Company (NYSE:GAMpB.PFD) ROA % Distribution

For the Asset Management industry and Financial Services sector, General American Investors Company's ROA % distribution charts can be found below:

* The bar in red indicates where General American Investors Company's ROA % falls into.



General American Investors Company ROA % Calculation

General American Investors Company'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 )
=293.611/( (1306.92+1496.803)/ 2 )
=293.611/1401.8615
=20.94 %

General American Investors Company's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Dec. 2021 )+Total Assets (Q: Jun. 2022 ))/ count )
=-482.886/( (1496.803+1217.91)/ 2 )
=-482.886/1357.3565
=-35.58 %

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


General American Investors Company  (NYSE:GAMpB.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: Jun. 2022 )
=Net Income/Total Assets
=-482.886/1357.3565
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-482.886 / -471.12)*(-471.12 / 1357.3565)
=Net Margin %*Asset Turnover
=102.5 %*-0.3471
=-35.58 %

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


General American Investors Company ROA % Related Terms

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


General American Investors Company (NYSE:GAMpB.PFD) Business Description

General American Investors Company logo
Traded in Other Exchanges
Address
530 Fifth Avenue, 26th Floor, New York, NY, USA, 10036
General American Investors Company Inc is a closed-end, diversified management investment company. The primary investment objective of the company is long-term capital appreciation through investment in companies with above average growth potential. It focuses on equity securities with growth potential at reasonable valuations.
Executives
Altschul Arthur G Jr director C/O OVERBROOK MANAGEMENT CORP 122 E. 42ND STREET, SUITE 2500 NEW YORK NY 10168
Davidson Spencer director, other: Chairman GENERAL AMERICAN INVESTORS CO INC 530 FIFTH AVE - 26TH FLOOR NEW YORK NY 10036
1975 Trust Fbo Altschul Arthur G Land Trust other: Trustees are directors
Priest Jeffrey W officer: President & CEO GENERAL AMERICAN INVESTORS COMPANY, INC. 530 FIFTH AVE - 26TH FLOOR NEW YORK NY 10036
Stark Eugene S officer: VP Administration/CCO/PFO GENERAL AMERICAN INVESTORS COMPANY, INC. 530 FIFTH AVE - 26TH FLOOR NEW YORK NY 10036
Kronzon Liron officer: Vice-President GENERAL AMERICAN INVESTORS COMPANY, INC. 530 FIFTH AVE - 26 FL NEW YORK NY 10036
Jin Samantha X. officer: Treasurer 530 FIFTH AVE 26TH FLOOR NEW YORK NY 10036
Santa Maria Connie A. officer: Assistant Corporate Secretary GENERAL AMERICAN INVESTORS COMPANY, INC. 530 FIFTH AVE 26TH FLOOR NEW YORK NY 10036
Del Villar Clara E. director C/O GENERAL AMERICAN INVESTORS COMPANY 530 FIFTH AVE - 26TH FLOOR NEW YORK NY 10036
Schirmer Henry R director C/O GENERAL AMERICAN INVESTORS COMPANY 530 FIFTH AVE - 26TH FLOOR NEW YORK NY 10036
Majmudar Anang K. officer: Senior Vice-President GENERAL AMERICAN INVESTORS COMPANY, INC. 530 FIFTH AVE - 26TH FLOOR NEW YORK NY 10036
Genid Linda J officer: Corporate Secretary 530 FIFTH AVE 26TH FLOOR NEW YORK NY 10036
Gotbaum Betsy F. director C/O GENERAL AMERICAN INVESTORS COMPANY 530 FIFTH AVE - 26TH FLOOR NEW YORK NY 10036
Lynch Sally A officer: Vice-President GENERAL AMERICAN INVESTORS CO INC 530 FIFTH AVE - 26TH FLOOR NEW YORK NY 10036
Gordan John D Iii director C/O GENERAL AMERICAN INVESTORS COMPANY 530 FIFTH AVE - 26TH FLOOR NEW YORK NY 10036
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
premium membership