Market Cap : 36.5 M | Enterprise Value : 37.05 M | P/E (TTM) : | P/B : 3.58 |
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. 11 88 0 Solutions AG's annualized Net Income for the quarter that ended in Sep. 2020 was $-1.25 Mil. 11 88 0 Solutions AG's average Total Assets over the quarter that ended in Sep. 2020 was $33.53 Mil. Therefore, 11 88 0 Solutions AG's annualized ROA % for the quarter that ended in Sep. 2020 was -3.74%.
During the past 13 years, 11 88 0 Solutions AG's highest ROA % was 38.97%. The lowest was -36.23%. And the median was -10.58%.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where 11 88 0 Solutions AG's ROA % falls into.
11 88 0 Solutions AG's annualized ROA % for the fiscal year that ended in Dec. 2019 is calculated as:
ROA % | = | Net Income (A: Dec. 2019 ) | / | ( (Total Assets (A: Dec. 2018 ) | + | Total Assets (A: Dec. 2019 )) | / count ) |
= | -3.5311111111111 | / | ( (22.244596131968 | + | 30.381111111111) | / 2 ) | |
= | -3.5311111111111 | / | 26.31285362154 | ||||
= | -13.42 % |
11 88 0 Solutions AG's annualized ROA % for the quarter that ended in Sep. 2020 is calculated as:
ROA % | = | Net Income (Q: Sep. 2020 ) | / | ( (Total Assets (Q: Jun. 2020 ) | + | Total Assets (Q: Sep. 2020 )) | / count ) |
= | -1.2532391048292 | / | ( (28.476351351351 | + | 38.591283863369) | / 2 ) | |
= | -1.2532391048292 | / | 33.53381760736 | ||||
= | -3.74 % |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 (Sep. 2020) 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:
ROA % | (Q: Sep. 2020 ) | ||
= | Net Income | / | Total Assets |
= | -1.2532391048292 | / | 33.53381760736 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (-1.2532391048292 / 59.01531213192) | * | (59.01531213192 / 33.53381760736) |
= | Net Margin % | * | Asset Turnover |
= | -2.12 % | * | 1.7599 |
= | -3.74 % |
Note: The Net Income data used here is four times the quarterly (Sep. 2020) net income data. The Revenue data used here is four times the quarterly (Sep. 2020) revenue data.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
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.
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