ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. SMART Global Holdings's annualizedNet Income for the quarter that ended in Nov. 2023 was $-80 Mil.
SMART Global Holdings's average Total Assets over the quarter that ended in Nov. 2023 was $1,568 Mil. Therefore, SMART Global Holdings's annualized ROA % for the quarter that ended in Nov. 2023 was -5.08%.
The historical rank and industry rank for SMART Global Holdings's ROA % or its related term are showing as below:
SGH'
s ROA % Range Over the Past 10 Years
Min: -12.99 Med: -0.15 Max: 20.73
Current: -12.99
During the past 9 years, SMART Global Holdings's highest ROA % was 20.73%. The lowest was -12.99%. And the median was -0.15%.
SGH's ROA % is ranked worse than 87.95% of 996
companies
in the Semiconductors industry
Industry Median: 2.405
vs SGH: -12.99
SMART Global Holdings ROA % Historical Data
The historical data trend for SMART Global 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.
For the Semiconductors subindustry, SMART Global 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.
SMART Global Holdings ROA % Distribution
For the Semiconductors industry and Technology sector, SMART Global Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where SMART Global Holdings's ROA % falls into.
SMART Global Holdings ROA % Calculation
SMART Global Holdings's annualized ROA % for the fiscal year that ended in Aug. 2023 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 four times the quarterly (Nov. 2023) net income data.
ROA % is displayed in the 30-year financial page.
SMART Global Holdings (NAS:SGH) 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 four times the quarterly (Nov. 2023) net income data. The Revenue data used here is four times the quarterly (Nov. 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.
SMART Global Holdings ROA % Related Terms
Thank you for viewing the detailed overview of SMART Global Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
SMART Global Holdings (SMART Global Holdings) Business Description
SMART Global Holdings Inc is a designer and manufacturer of electronic products focused on memory and computing technology areas. It specializes in application-specific product development and support for customers in the enterprise, government and original equipment manufacturer (OEM) markets. It operates in three segments such as Memory Solutions in which Memory Solutions group, under our SMART Modular brand, provides high performance and reliable memory solutions through the design, development and advanced packaging of leading-edge to extended lifecycle products. Intelligent Platform Solutions in their IPS group, under our Penguin Solutions and newly acquired Stratus Technologies brands, offers specialized platform solutions and services for high-performance computing.
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