LMPX has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
LMPX has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LMP Automotive Holdings's annualized Net Income for the quarter that ended in Sep. 2021 was $19.1 Mil. LMP Automotive Holdings's average Total Assets over the quarter that ended in Sep. 2021 was $218.5 Mil. Therefore, LMP Automotive Holdings's annualized ROA % for the quarter that ended in Sep. 2021 was 8.73%.
The historical rank and industry rank for LMP Automotive Holdings's ROA % or its related term are showing as below:
The historical data trend for LMP Automotive Holdings'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.
LMP Automotive Holdings Annual Data | |||||||||
Trend | Dec17 | Dec18 | Dec19 | Dec20 | |||||
ROA % | -33.45 | -70.26 | -23.62 | -17.73 |
LMP Automotive Holdings Quarterly Data | |||||||||||||||
Dec17 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | |
ROA % | Get a 7-Day Free Trial | -7.67 | -28.87 | -5.28 | -3.61 | 8.73 |
For the Auto & Truck Dealerships subindustry, LMP Automotive Holdings'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.
For the Vehicles & Parts industry and Consumer Cyclical sector, LMP Automotive Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where LMP Automotive Holdings's ROA % falls into.
LMP Automotive Holdings'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 ) |
= | -4.816 | / | ( (19.908 | + | 34.413) | / 2 ) | |
= | -4.816 | / | 27.1605 | ||||
= | -17.73 % |
LMP Automotive Holdings'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 ) |
= | 19.076 | / | ( (222.813 | + | 214.236) | / 2 ) | |
= | 19.076 | / | 218.5245 | ||||
= | 8.73 % |
* 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 (Sep. 2021) net income data. ROA % is displayed in the 30-year financial page.
LMP Automotive Holdings (OTCPK:LMPX) 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 |
= | 19.076 | / | 218.5245 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (19.076 / 565.732) | * | (565.732 / 218.5245) |
= | Net Margin % | * | Asset Turnover |
= | 3.37 % | * | 2.5889 |
= | 8.73 % |
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.
* 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.
Thank you for viewing the detailed overview of LMP Automotive Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Samer Tawfik | director, 10 percent owner, officer: President and CEO | C/O HERRICK FEINSTEIN LLP 2 PARK AVE NEW YORK NY 10016 |
Svetlana Limburger | director | C/O LMP AUTOMOTIVE HOLDINGS, INC. 500 EAST BROWARD BLVD., SUITE 1900 FT. LAUDERDALE FL 33394 |
Richard Aldahan | officer: Chief Operating Officer | 500 EAST BROWARD BLVD. SUITE 1900 FL 33394 |
William G Cohen | director | 117 HARBOR ROAD WESTPORT CT 06880 |
Robert Bellaflores | officer: Chief Financial Officer | 500 EAST BROWARD BLVD. SUITE 1900 FT. LAUDERDALE FL 33394 |
Evan Bernstein | officer: Chief Financial Officer | 500 EAST BROWARD BLVD. SUITE 1900 FT. LAUDERDALE FL 33394 |
Keith Locker | director | C/O GLENBOROUGH REALTY TRUST, 400 SOUTH EL CAMINO REAL, SUITE 1100, SAN MATEO CA 94402 |
Morris Robert J. Jr. | director | 4145 COLONEL VANDERHORST CIRCLE MT. PLEASANT SC 29466 |
Elias Nadim Nader | director | 2295 LEIGH AVENUE SAN JOSE CA 95124 |
Bryan Silverstein | officer: Chief Financial Officer | 601 NORTH STATE ROAD 7 PLANTATION FL 33317 |
From GuruFocus
By PurpleRose PurpleRose • 07-23-2022
By PurpleRose PurpleRose • 08-16-2022
By Value_Insider Value_Insider • 12-19-2022
By PurpleRose PurpleRose • 08-08-2022
By sperokesalga sperokesalga • 06-14-2023
By PRNewswire PRNewswire • 07-15-2022
By PurpleRose PurpleRose • 07-25-2022
By PurpleRose PurpleRose • 07-15-2022
By Value_Insider Value_Insider • 10-19-2022
By PurpleRose PurpleRose • 07-15-2022
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.