ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Geely Automobile Holdings's annualizedNet Income for the quarter that ended in Dec. 2023 was $1,047 Mil.
Geely Automobile Holdings's average Total Assets over the quarter that ended in Dec. 2023 was $24,957 Mil. Therefore, Geely Automobile Holdings's annualized ROA % for the quarter that ended in Dec. 2023 was 4.20%.
The historical rank and industry rank for Geely Automobile Holdings's ROA % or its related term are showing as below:
GELYY'
s ROA % Range Over the Past 10 Years
Min: 3 Med: 5.4 Max: 14.28
Current: 3.07
During the past 13 years, Geely Automobile Holdings's highest ROA % was 14.28%. The lowest was 3.00%. And the median was 5.40%.
GELYY's ROA % is ranked worse than 51.27% of 1301
companies
in the Vehicles & Parts industry
Industry Median: 3.28
vs GELYY: 3.07
* 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.
Competitive Comparison of Geely Automobile Holdings's ROA %
For the Auto Manufacturers subindustry, Geely Automobile Holdings'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.
Geely Automobile Holdings's ROA % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Geely Automobile Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Geely Automobile Holdings's ROA % falls into.
Geely Automobile Holdings ROA % Calculation
Geely Automobile Holdings's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
* 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. 2023) net income data.
ROA % is displayed in the 30-year financial page.
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:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.
Geely Automobile Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Geely Automobile Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Geely Automobile Holdings (Geely Automobile Holdings) Business Description
Based in Hangzhou, Zhejiang province, Geely Automobile Holdings manufactures and sells passenger vehicles and automotive parts. Geely is the largest local brand manufacturer and the third largest passenger vehicle brand in terms of sales volume in China. The firm formed a joint venture with Volvo in 2016 to build cars under the Lynk & Co brand. The new brand targets a young audience with sales and marketing approaches closely resembling those of modern lifestyle brands. Including Lynk & Co, Geely sold about 1.4 million cars in 2022. The domestic market accounts for more than 90% of Geely's revenue, with the rest coming from other parts of the world.
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