ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Topsports International Holdings's annualizedNet Income for the quarter that ended in Aug. 2023 was HK$2,888 Mil.
Topsports International Holdings's average Total Assets over the quarter that ended in Aug. 2023 was HK$18,732 Mil. Therefore, Topsports International Holdings's annualized ROA % for the quarter that ended in Aug. 2023 was 15.41%.
The historical rank and industry rank for Topsports International Holdings's ROA % or its related term are showing as below:
HKSE:06110'
s ROA % Range Over the Past 10 Years
Min: 10.24 Med: 11.8 Max: 14.54
Current: 11.6
During the past 7 years, Topsports International Holdings's highest ROA % was 14.54%. The lowest was 10.24%. And the median was 11.80%.
HKSE:06110's ROA % is ranked better than 90.07% of 1118
companies
in the Retail - Cyclical industry
Industry Median: 2.195
vs HKSE:06110: 11.60
Topsports International Holdings ROA % Historical Data
The historical data trend for Topsports International Holdings'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.
Competitive Comparison of Topsports International Holdings's ROA %
For the Apparel Retail subindustry, Topsports International 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.
Topsports International Holdings's ROA % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Topsports International Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Topsports International Holdings's ROA % falls into.
Topsports International Holdings ROA % Calculation
Topsports International Holdings's annualized ROA % for the fiscal year that ended in Feb. 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 (Aug. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Topsports International Holdings (HKSE:06110) 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 two times the semi-annual (Aug. 2023) net income data. The Revenue data used here is two times the semi-annual (Aug. 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.
Topsports International Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Topsports International Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Topsports International Holdings (HKSE:06110) Business Description
Topsports is the largest sportswear retailer in China, generating the majority of its revenue from selling products of international sportswear brands. The business operates as an intermediary between brand owners and consumers seeking to buy sportswear. The firm operates more than 6,500 stores directly as of the end of fiscal 2023, and most of these "single-brand" stores have been opened under the names of sportswear brands that it partners with, such as Nike and Adidas. In addition to these two sportswear giants, Topsports also has partnerships with sportswear brands such as Puma, Li Ning, Asics, and The North Face. While most of Topsports' sales take place in stores, the firm also operates online shops under the Topsports brand on major e-commerce platforms such as Alibaba and JD.com.
Topsports International Holdings (HKSE:06110) Headlines
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