ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Italgas SpA's annualizedNet Income for the quarter that ended in Jun. 2023 was €426 Mil.
Italgas SpA's average Total Assets over the quarter that ended in Jun. 2023 was €10,983 Mil. Therefore, Italgas SpA's annualized ROA % for the quarter that ended in Jun. 2023 was 3.88%.
The historical rank and industry rank for Italgas SpA's ROA % or its related term are showing as below:
MIL:IG'
s ROA % Range Over the Past 10 Years
Min: -1.29 Med: 4.43 Max: 5.57
Current: 4.11
During the past 8 years, Italgas SpA's highest ROA % was 5.57%. The lowest was -1.29%. And the median was 4.43%.
MIL:IG's ROA % is ranked better than 62.69% of 520
companies
in the Utilities - Regulated industry
Industry Median: 2.915
vs MIL:IG: 4.11
Italgas SpA ROA % Historical Data
The historical data trend for Italgas SpA'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.
For the Utilities - Regulated Gas subindustry, Italgas SpA'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.
Italgas SpA's ROA % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Italgas SpA's ROA % distribution charts can be found below:
* The bar in red indicates where Italgas SpA's ROA % falls into.
Italgas SpA ROA % Calculation
Italgas SpA's annualized ROA % for the fiscal year that ended in Dec. 2022 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 (Jun. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Italgas SpA (MIL:IG) 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 (Jun. 2023) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
Italgas SpA ROA % Related Terms
Thank you for viewing the detailed overview of Italgas SpA's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Italgas SpA is an Italy-based company engaged in the business of natural gas distribution. The distribution service consists of transporting gas through local pipeline networks, from points of delivery at the reduction and measurement stations interconnected with the transport networks up to the final delivery points to customers. In addition, the company is also engaged in metering activities, which consist of determining, gathering, making available, and archiving metering data on natural gas withdrawn over the distribution networks. It derives a majority of the revenue from natural gas distribution activity. The other activities of the company are the distribution and sale of water and providing technical, engineering, IT assistance, and other services.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MIL:IG has been successfully added to your 