ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Leader Capital Holdings's annualizedNet Income for the quarter that ended in Aug. 2023 was $-3.01 Mil.
Leader Capital Holdings's average Total Assets over the quarter that ended in Aug. 2023 was $0.18 Mil. Therefore, Leader Capital Holdings's annualized ROA % for the quarter that ended in Aug. 2023 was -1,692.13%.
The historical rank and industry rank for Leader Capital Holdings's ROA % or its related term are showing as below:
LCHD'
s ROA % Range Over the Past 10 Years
Min: -760.5 Med: -287.18 Max: -77.12
Current: -760.5
During the past 7 years, Leader Capital Holdings's highest ROA % was -77.12%. The lowest was -760.50%. And the median was -287.18%.
LCHD's ROA % is ranked worse than 99.29% of 2824
companies
in the Software industry
Industry Median: 1.015
vs LCHD: -760.50
* 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 Leader Capital Holdings's ROA %
For the Software - Application subindustry, Leader Capital 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.
Leader Capital Holdings's ROA % Distribution in the Software Industry
For the Software industry and Technology sector, Leader Capital Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Leader Capital Holdings's ROA % falls into.
Leader Capital Holdings ROA % Calculation
Leader Capital Holdings's annualized ROA % for the fiscal year that ended in Aug. 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 (Aug. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Leader Capital Holdings (OTCPK:LCHD) 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 (Aug. 2023) net income data. The Revenue data used here is four times the quarterly (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.
Leader Capital Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Leader Capital Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Leader Capital Holdings (Leader Capital Holdings) Business Description
Leader Capital Holdings Corp through its subsidiaries owns and operates a mobile application platform that connects the investor with other financial service providers. The company's application helps to meet the generic needs of financial service providers mainly for trust and insurance companies. Investors can use this platform to make their investment decisions in real-time and place investment orders without having to e-mail or fax documents to their investment advisor. The Company operates in one business and industry segment: the provision of investment platform services through mobile application.
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