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World Acceptance (MEX:WRLD) ROA %

: 1.84% (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. World Acceptance's annualized Net Income for the quarter that ended in Dec. 2022 was MXN449 Mil. World Acceptance's average Total Assets over the quarter that ended in Dec. 2022 was MXN24,407 Mil. Therefore, World Acceptance's annualized ROA % for the quarter that ended in Dec. 2022 was 1.84%.

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

MEX:WRLD' s ROA % Range Over the Past 10 Years
Min: 1.75   Med: 9.03   Max: 13.48
Current: 1.75

During the past 13 years, World Acceptance's highest ROA % was 13.48%. The lowest was 1.75%. And the median was 9.03%.

MEX:WRLD's ROA % is ranked better than
50.66% of 533 companies
in the Credit Services industry
Industry Median: 1.67 vs MEX:WRLD: 1.75

World Acceptance ROA % Historical Data

The historical data trend for World Acceptance'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.

World Acceptance Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.53 3.24 8.27 4.91 1.72

World Acceptance Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 5.82 -2.83 -0.43 1.84 8.43

Competitive Comparison

For the Credit Services subindustry, World Acceptance'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.

   

World Acceptance ROA % Distribution

For the Credit Services industry and Financial Services sector, World Acceptance's ROA % distribution charts can be found below:

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



World Acceptance ROA % Calculation

World Acceptance's annualized ROA % for the fiscal year that ended in Mar. 2022 is calculated as:

ROA %=Net Income (A: Mar. 2022 )/( (Total Assets (A: Mar. 2021 )+Total Assets (A: Mar. 2022 ))/ count )
=1073.601/( (19506.213+24257.512)/ 2 )
=1073.601/21881.8625
=4.91 %

World Acceptance'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 )
=449.108/( (25088.575+23726.203)/ 2 )
=449.108/24407.389
=1.84 %

* 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.


World Acceptance  (MEX:WRLD) 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
=449.108/24407.389
=(Net Income / Revenue)*(Revenue / Total Assets)
=(449.108 / 10327.108)*(10327.108 / 24407.389)
=Net Margin %*Asset Turnover
=4.35 %*0.4231
=1.84 %

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.


World Acceptance ROA % Related Terms

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


World Acceptance (MEX:WRLD) Business Description

World Acceptance logo
Traded in Other Exchanges
Address
104 S. Main Street, Greenville, SC, USA, 29601
World Acceptance Corp operates a small-loan consumer finance business. The company offers short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. It also offers income tax return preparation services to its loan customers and other individuals.

World Acceptance (MEX:WRLD) Headlines

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