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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The RealReal's annualized Net Income for the quarter that ended in Dec. 2023 was $-86.8 Mil. The RealReal's average Total Assets over the quarter that ended in Dec. 2023 was $449.8 Mil. Therefore, The RealReal's annualized ROA % for the quarter that ended in Dec. 2023 was -19.29%.
The historical rank and industry rank for The RealReal's ROA % or its related term are showing as below:
During the past 7 years, The RealReal's highest ROA % was -28.67%. The lowest was -71.69%. And the median was -32.85%.
The historical data trend for The RealReal'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.
The RealReal Annual Data | ||||||||||||||||
Trend | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||
ROA % | Get a 7-Day Free Trial | -32.77 | -32.85 | -34.72 | -28.67 | -31.71 |
The RealReal Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
ROA % | Get a 7-Day Free Trial | -24.71 | -58.54 | -34.07 | -20.14 | -19.29 |
For the Luxury Goods subindustry, The RealReal'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 Retail - Cyclical industry and Consumer Cyclical sector, The RealReal's ROA % distribution charts can be found below:
* The bar in red indicates where The RealReal's ROA % falls into.
The RealReal's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
ROA % | = | Net Income (A: Dec. 2023 ) | / | ( (Total Assets (A: Dec. 2022 ) | + | Total Assets (A: Dec. 2023 )) | / count ) |
= | -168.472 | / | ( (615.641 | + | 446.923) | / 2 ) | |
= | -168.472 | / | 531.282 | ||||
= | -31.71 % |
The RealReal's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:
ROA % | = | Net Income (Q: Dec. 2023 ) | / | ( (Total Assets (Q: Sep. 2023 ) | + | Total Assets (Q: Dec. 2023 )) | / count ) |
= | -86.772 | / | ( (452.681 | + | 446.923) | / 2 ) | |
= | -86.772 | / | 449.802 | ||||
= | -19.29 % |
* 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. 2023) net income data. ROA % is displayed in the 30-year financial page.
The RealReal (NAS:REAL) 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: Dec. 2023 ) | ||
= | Net Income | / | Total Assets |
= | -86.772 | / | 449.802 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (-86.772 / 573.492) | * | (573.492 / 449.802) |
= | Net Margin % | * | Asset Turnover |
= | -15.13 % | * | 1.275 |
= | -19.29 % |
Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 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.
Thank you for viewing the detailed overview of The RealReal's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
John E Koryl | director, officer: Chief Executive Officer | 55 FRANCISCO STREET 4TH FLOOR, SAN FRANCISCO CA 94133 |
Levesque Rati Sahi | officer: Chief Operating Officer | 55 FRANCISCO, SAN FRANCISCO CA 94133 |
Robert J Krolik | director | 873 SANTA CRUZ AVE, SUITE 206, MENLO PARK CA 94025 |
Luke Thomas Friang | officer: Chief Product & Tech Officer | 20614 NE 38TH STREET, SAMMAMISH WA 98074 |
Todd A Suko | officer: Chief Legal Officer and Secy. | 7251 WEST 4TH STREET, GREELEY CO 80634 |
Steve Ming Lo | officer: VP, Corporate Controller | 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133 |
Robert K. Julian | officer: Chief Financial Officer | C/O SPORTSMAN'S WAREHOUSE, 7035 SOUTH HIGH TECH DRIVE, MIDVALE UT 84047 |
James R. Miller | director | 4050 EAST COTTON CENTER BLVD. 6-68, PHOENIX AZ 85040 |
Julie Wainwright | director, officer: CEO, President and Chairperson | C/O THE REALREAL, INC., 55 FRANCISCO STREET, SUITE 600, SAN FRANCISCO CA 94133 |
Arnon Katz | officer: Chief Product & Technology Off | 3331 VERDUN AVE, SAN MATEO CA 94403 |
Matt Gustke | officer: Chief Financial Officer | 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133 |
Karen Katz | director | |
Fredrik Bjork | officer: Chief Technology Officer | 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133 |
Baird Gilbert L. Iii | director | 5075 S. SYRACUSE ST., DENVER CO 80237 |
Michael Andrew Kumin | director | C/O GREAT HILL PARTNERS, L.P., 200 CLARENDON STREET, 29TH FLOOR, BOSTON MA 02116 |
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