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Constellation Energy ROA %

: -0.96% (As of Jun. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Constellation Energy's annualized Net Income for the quarter that ended in Jun. 2022 was $-444 Mil. Constellation Energy's average Total Assets over the quarter that ended in Jun. 2022 was $46,090 Mil. Therefore, Constellation Energy's annualized ROA % for the quarter that ended in Jun. 2022 was -0.96%.

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

CEG' s ROA % Range Over the Past 10 Years
Min: -0.43   Med: 1.21   Max: 2.3
Current: 1.37

During the past 4 years, Constellation Energy's highest ROA % was 2.30%. The lowest was -0.43%. And the median was 1.21%.

CEG's ROA % is ranked worse than
51.21% of 412 companies
in the Utilities - Independent Power Producers industry
Industry Median: 1.52 vs CEG: 1.37

Constellation Energy ROA % Historical Data

The historical data trend for Constellation Energy'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.

Constellation Energy Annual Data
Trend Dec18 Dec19 Dec20 Dec21
ROA %
- 2.30 1.21 -0.43

Constellation Energy Quarterly Data
Dec18 Dec19 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 5.06 0.35 0.89 -0.96

Competitive Comparison

For the Utilities - Renewable subindustry, Constellation Energy'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.

   

Constellation Energy ROA % Distribution

For the Utilities - Independent Power Producers industry and Utilities sector, Constellation Energy's ROA % distribution charts can be found below:

* The bar in red indicates where Constellation Energy's ROA % falls into.



Constellation Energy ROA % Calculation

Constellation Energy's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=-205/( (48094+48086)/ 2 )
=-205/48090
=-0.43 %

Constellation Energy's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Jun. 2022 ))/ count )
=-444/( (46846+45333)/ 2 )
=-444/46089.5
=-0.96 %

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


Constellation Energy  (NAS:CEG) 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: Jun. 2022 )
=Net Income/Total Assets
=-444/46089.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-444 / 21860)*(21860 / 46089.5)
=Net Margin %*Asset Turnover
=-2.03 %*0.4743
=-0.96 %

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


Constellation Energy ROA % Related Terms

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


Constellation Energy Business Description

Constellation Energy logo
Traded in Other Exchanges
Address
1310 Point Street, Baltimore, MD, USA, 21231
Constellation Energy Corp offers energy solutions. It provides clean energy and sustainable solutions to homes, businesses, the public sector, community aggregations, and a range of wholesale customers (such as municipalities, cooperatives, and other strategics). The company offers comprehensive energy solutions and a variety of pricing options for electric, natural gas, and renewable energy products for companies of any size.
Executives
Hanson Bryan Craig officer: EVP & Chief Generation Officer 10 S. DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Koehler Michael officer: EVP & Chief Admin Officer 1310 POINT STREET BALTIMORE MD 21231
Bauer Matthew N officer: SVP & Controller 1310 POINT STREET BALTIMORE MD 21231
Barron Kathleen officer: EVP & Chief Strategy Officer 1310 POINT STREET BALTIMORE MD 21231
Dardis David O. officer: EVP & General Counsel 1310 POINT STREET BALTIMORE MD 21231
Eggers Daniel L. officer: EVP & CFO 1310 POINT STREET BALTIMORE MD 21231
Mchugh James officer: EVP & Chief Commercial Officer 10 S DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Ashish Khandpur K director 3M COMPANY LEGAL AFFAIRS 3M CENTER ST PAUL MN 55144-1000
Dominguez Joseph director, officer: President & CEO 10 SOUTH DEARBORN STREET CHICAGO IL 60603
Holzrichter Julie director 20 S. WACKER DRIVE CHICAGO IL 60606
De Balmann Yves C director 360 MADISON AVE 20TH FL C/O BREGAL INVESTMENTS NEW YORK NY 10017
Lawless Robert J director C/O CARPENTER TECHNOLOGY CORP 1047 NORTH PARK ROAD WYOMISSING PA 19610
Halverson Bradley M director 100 N.E. ADAMS STREET PEORIA IL 61629
Richardson John M director 10 S. DEARBORN STREET 54TH FLOOR CHICAGO IL 60603
Ferguson Rhonda S director 1400 DOUGLAS ST OMAHA NE 68179
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