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Morgan Stanley (MEX:MS) ROA %

: 0.76% (As of Dec. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Morgan Stanley's annualized Net Income for the quarter that ended in Dec. 2022 was MXN175,435 Mil. Morgan Stanley's average Total Assets over the quarter that ended in Dec. 2022 was MXN23,215,251 Mil. Therefore, Morgan Stanley's annualized ROA % for the quarter that ended in Dec. 2022 was 0.76%.

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

MEX:MS' s ROA % Range Over the Past 10 Years
Min: 0.36   Med: 0.85   Max: 1.31
Current: 0.93

During the past 13 years, Morgan Stanley's highest ROA % was 1.31%. The lowest was 0.36%. And the median was 0.85%.

MEX:MS's ROA % is ranked worse than
54.78% of 785 companies
in the Capital Markets industry
Industry Median: 1.21 vs MEX:MS: 0.93

Morgan Stanley ROA % Historical Data

The historical data trend for Morgan Stanley'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.

* Premium members only.

Morgan Stanley Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.05 1.01 1.11 1.33 0.90

Morgan Stanley Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.27 1.21 0.82 0.90 0.76

Competitive Comparison

For the Capital Markets subindustry, Morgan Stanley'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.

   

Morgan Stanley ROA % Distribution

For the Capital Markets industry and Financial Services sector, Morgan Stanley's ROA % distribution charts can be found below:

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



Morgan Stanley ROA % Calculation

Morgan Stanley's annualized ROA % for the fiscal year that ended in Dec. 2022 is calculated as:

ROA %=Net Income (A: Dec. 2022 )/( (Total Assets (A: Dec. 2021 )+Total Assets (A: Dec. 2022 ))/ count )
=216331.62927535/( (24863017.619389+23149995.026864)/ 2 )
=216331.62927535/24006506.323126
=0.90 %

Morgan Stanley's annualized ROA % for the quarter that ended in Dec. 2022 is calculated as:

ROA %=Net Income (Q: Dec. 2022 )/( (Total Assets (Q: Sep. 2022 )+Total Assets (Q: Dec. 2022 ))/ count )
=175434.77126111/( (23280505.981281+23149995.026864)/ 2 )
=175434.77126111/23215250.504072
=0.76 %

* 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 (Dec. 2022) net income data. ROA % is displayed in the 30-year financial page.


Morgan Stanley  (MEX:MS) 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 bank’s 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: Dec. 2022 )
=Net Income/Total Assets
=175434.77126111/23215250.504072
=(Net Income / Revenue)*(Revenue / Total Assets)
=(175434.77126111 / 933507.56192516)*(933507.56192516 / 23215250.504072)
=Net Margin %*Asset Turnover
=18.79 %*0.0402
=0.76 %

Note: The Net Income data used here is four times the quarterly (Dec. 2022) net income data. The Revenue data used here is four times the quarterly (Dec. 2022) 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.


Morgan Stanley ROA % Related Terms

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Morgan Stanley (MEX:MS) Business Description

Morgan Stanley logo
Address
1585 Broadway, New York, NY, USA, 10036
Morgan Stanley is a global investment bank whose history, through its legacy firms, can be traced back to 1924. The company has institutional securities, wealth management, and investment management segments. The company had about $5 trillion of client assets as well as over 70,000 employees at the end of 2021. Approximately 50% of the company's net revenue is from its institutional securities business, with the remainder coming from wealth and investment management. The company derives about 30% of its total revenue outside the Americas.

Morgan Stanley (MEX:MS) Headlines