ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. IG Group Holdings's annualizedNet Income for the quarter that ended in Nov. 2023 was $330 Mil.
IG Group Holdings's average Total Assets over the quarter that ended in Nov. 2023 was $3,597 Mil. Therefore, IG Group Holdings's annualized ROA % for the quarter that ended in Nov. 2023 was 9.18%.
The historical rank and industry rank for IG Group Holdings's ROA % or its related term are showing as below:
IGGRF'
s ROA % Range Over the Past 10 Years
Min: 10.41 Med: 20.31 Max: 24.57
Current: 10.41
During the past 13 years, IG Group Holdings's highest ROA % was 24.57%. The lowest was 10.41%. And the median was 20.31%.
IGGRF's ROA % is ranked better than 85.24% of 806
companies
in the Capital Markets industry
Industry Median: 1.375
vs IGGRF: 10.41
IG Group Holdings ROA % Historical Data
The historical data trend for IG Group 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 IG Group Holdings's ROA %
For the Capital Markets subindustry, IG Group 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.
IG Group Holdings's ROA % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, IG Group Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where IG Group Holdings's ROA % falls into.
IG Group Holdings ROA % Calculation
IG Group Holdings's annualized ROA % for the fiscal year that ended in May. 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 (Nov. 2023) net income data.
ROA % is displayed in the 30-year financial page.
IG Group Holdings (OTCPK:IGGRF) 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 (Nov. 2023) net income data. The Revenue data used here is two times the semi-annual (Nov. 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.
IG Group Holdings ROA % Related Terms
Thank you for viewing the detailed overview of IG Group Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
IG Group Holdings (IG Group Holdings) Business Description
IG Group Holdings PLC provides online trading services to its clients. The majority of the company's revenue stems from its derivative products and contracts for difference (CFDs). The company operates through various segments which are The U.K. segment which derives its revenue from financial spread bets, CFDs, binary options, and execution-only stockbroking. The Australian segment derives its revenue from CFDs and binary options. The European segment derives its revenue from CFDs, binary options, and execution-only stockbroking. The Rest of the World segment derives its revenue from the operation of a regulated futures and options exchange as well as CFDs and binary options. The company generates more than half of its revenue from the U.K., followed by Europe and Australia.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
IGGRF has been successfully added to your 