ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Shenhua Energy Co's annualizedNet Income for the quarter that ended in Dec. 2023 was HK$49,986 Mil.
China Shenhua Energy Co's average Total Assets over the quarter that ended in Dec. 2023 was HK$679,686 Mil. Therefore, China Shenhua Energy Co's annualized ROA % for the quarter that ended in Dec. 2023 was 7.35%.
The historical rank and industry rank for China Shenhua Energy Co's ROA % or its related term are showing as below:
HKSE:01088'
s ROA % Range Over the Past 10 Years
Min: 2.94 Med: 7.57 Max: 11.34
Current: 9.38
During the past 13 years, China Shenhua Energy Co's highest ROA % was 11.34%. The lowest was 2.94%. And the median was 7.57%.
HKSE:01088's ROA % is ranked better than 69.61% of 181
companies
in the Other Energy Sources industry
Industry Median: 2.52
vs HKSE:01088: 9.38
* 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 China Shenhua Energy Co's ROA %
For the Thermal Coal subindustry, China Shenhua Energy Co'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.
China Shenhua Energy Co's ROA % Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, China Shenhua Energy Co's ROA % distribution charts can be found below:
* The bar in red indicates where China Shenhua Energy Co's ROA % falls into.
China Shenhua Energy Co ROA % Calculation
China Shenhua Energy Co'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 four times the quarterly (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
China Shenhua Energy Co (HKSE:01088) 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:
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.
China Shenhua Energy Co ROA % Related Terms
Thank you for viewing the detailed overview of China Shenhua Energy Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
China Shenhua Energy Co (HKSE:01088) Business Description
China Shenhua Energy Co Ltd is a globally-leading integrated coal-based energy company, mainly engaging in seven business segments, namely coal, electricity, new energy, coal-to-chemicals, railway, port handling, and shipping. Focusing on its core coal mining operation, China Shenhua leverages its self-developed transportation and sales network as well as downstream power plants, coal-to-chemicals facilities and new energy projects to achieve cross-sector and cross-industry integrated development and operation.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:01088 has been successfully added to your 