ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. HELLA GmbH KGaA's annualizedNet Income for the quarter that ended in Sep. 2023 was $285 Mil.
HELLA GmbH KGaA's average Total Assets over the quarter that ended in Sep. 2023 was $7,569 Mil. Therefore, HELLA GmbH KGaA's annualized ROA % for the quarter that ended in Sep. 2023 was 3.76%.
The historical rank and industry rank for HELLA GmbH KGaA's ROA % or its related term are showing as below:
HLKHF'
s ROA % Range Over the Past 10 Years
Min: -7.12 Med: 6.11 Max: 10.22
Current: 4.45
During the past 11 years, HELLA GmbH KGaA's highest ROA % was 10.22%. The lowest was -7.12%. And the median was 6.11%.
HLKHF's ROA % is ranked better than 59.4% of 1303
companies
in the Vehicles & Parts industry
Industry Median: 3.29
vs HLKHF: 4.45
HELLA GmbH KGaA ROA % Historical Data
The historical data trend for HELLA GmbH KGaA'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.
For the Auto Parts subindustry, HELLA GmbH KGaA'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.
HELLA GmbH KGaA's ROA % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, HELLA GmbH KGaA's ROA % distribution charts can be found below:
* The bar in red indicates where HELLA GmbH KGaA's ROA % falls into.
HELLA GmbH KGaA ROA % Calculation
HELLA GmbH KGaA's annualized ROA % for the fiscal year that ended in May. 2021 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 (Sep. 2023) net income data.
ROA % is displayed in the 30-year financial page.
HELLA GmbH KGaA (OTCPK:HLKHF) 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 (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 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.
HELLA GmbH KGaA ROA % Related Terms
Thank you for viewing the detailed overview of HELLA GmbH KGaA's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
HELLA GmbH KGaA (HELLA GmbH KGaA) Business Description
HELLA GmbH & Co KGaA is a manufacturer of lighting and electronic components and systems for the automotive industry. The company also produces complete vehicle modules, air-conditioning systems, and vehicle electrical systems in its joint-venture companies, as well as products for specialist vehicles. Further, Hella operates a trade organisation for automotive parts, accessories, diagnosis, and services in Europe. The company is controlled through a pooled family majority shareholding in the group. The company has three reportable segments which are Lighting, Electronics and Lifecycle Solutions. The company generates majority of the revenue from Lighting segment.
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