Intelsat (LTS:0DZ3) ROA %

: -4.45% (As of Sep. 2021)

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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Intelsat's annualized Net Income for the quarter that ended in Sep. 2021 was $-583 Mil. Intelsat's average Total Assets over the quarter that ended in Sep. 2021 was $13,082 Mil. Therefore, Intelsat's annualized ROA % for the quarter that ended in Sep. 2021 was -4.45%.

The historical rank and industry rank for Intelsat's ROA % or its related term are showing as below:

Intelsat ROA % Historical Data

The historical data trend for Intelsat'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.

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Intelsat Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

ROA %

7.86

-1.40

-4.83

-7.60

-7.41

Intelsat Quarterly Data
	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21
ROA %																-0.53	-8.76	-5.46	-4.73	-4.45

Competitive Comparison

For the Telecom Services subindustry, Intelsat'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.

Annual Data Quarterly Data

Intelsat ROA % Distribution

For the Telecommunication Services industry and Communication Services sector, Intelsat's ROA % distribution charts can be found below:

* The bar in red indicates where Intelsat's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.

Intelsat ROA % Calculation

Intelsat's annualized ROA % for the fiscal year that ended in Dec. 2020 is calculated as:

ROA %	=	Net Income (A: Dec. 2020 )	/	( (Total Assets (A: Dec. 2019 )	+	Total Assets (A: Dec. 2020 ))	/ count )
	=	-911.664	/	( (11804.382	+	12797.681)	/ 2 )
	=	-911.664	/	12301.0315
	=	-7.41 %

Intelsat's annualized ROA % for the quarter that ended in Sep. 2021 is calculated as:

ROA %	=	Net Income (Q: Sep. 2021 )	/	( (Total Assets (Q: Jun. 2021 )	+	Total Assets (Q: Sep. 2021 ))	/ count )
	=	-582.76	/	( (12910.11	+	13253.07)	/ 2 )
	=	-582.76	/	13081.59
	=	-4.45 %

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. 2021) net income data. ROA % is displayed in the 30-year financial page.

Intelsat (LTS:0DZ3) 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:

	ROA %		(Q: Sep. 2021 )
=	Net Income	/	Total Assets
=	-582.76	/	13081.59
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-582.76 / 2104.38)	*	(2104.38 / 13081.59)
=	Net Margin %	*	Asset Turnover
=	-27.69 %	*	0.1609
=	-4.45 %

Note: The Net Income data used here is four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) revenue data.

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.

Intelsat ROA % Related Terms

Thank you for viewing the detailed overview of Intelsat's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.

Intelsat (LTS:0DZ3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Intelsat SA (LTS:0DZ3) » Definitions » ROA %

Comparable Companies

TSXV:VMY.H BOM:538674 NSE:ACCORD WAR:AIT

Traded in Other Exchanges

IPRA.PFD:USA

Address

4 rue Albert Borschette, Luxembourg, LUX, L-1246

Website

http://www.intelsat.com

Intelsat SA is a Luxembourg-based company which operates satellite services business. It is engaged in providing diversified communications services to the media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, and a multinational corporation. In addition, it provides commercial satellite communication services to the United States government and other select military organizations and their contractors. Intelsat operates through a single segment being Providing satellite services. The company earns the majority of its revenue from North America.

Intelsat (LTS:0DZ3) Headlines

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