NewtekOne (NAS:NEWT) ROA %

: 4.17% (As of Mar. 2023)

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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NewtekOne's annualized Net Income for the quarter that ended in Mar. 2023 was $46.9 Mil. NewtekOne's average Total Assets over the quarter that ended in Mar. 2023 was $1,124.3 Mil. Therefore, NewtekOne's annualized ROA % for the quarter that ended in Mar. 2023 was 4.17%.

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

NEWT' s ROA % Range Over the Past 10 Years
Min: 1.59 Med: 5.88 Max: 10.92
Current: 3.25

During the past 13 years, NewtekOne's highest ROA % was 10.92%. The lowest was 1.59%. And the median was 5.88%.

NEWT's ROA % is ranked better than
95.1% of 1449 companies
in the Banks industry
Industry Median: 0.98 vs NEWT: 3.25

NewtekOne ROA % Historical Data

The historical data trend for NewtekOne'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.

NewtekOne Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROA %

6.08

5.67

4.10

8.87

3.14

NewtekOne Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
ROA %																3.74	5.31	4.47	-0.89	4.17

Competitive Comparison

For the Banks - Regional subindustry, NewtekOne'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.

Annual Data Quarterly Data

NewtekOne ROA % Distribution

For the Banks industry and Financial Services sector, NewtekOne's ROA % distribution charts can be found below:

* The bar in red indicates where NewtekOne's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.

NewtekOne ROA % Calculation

NewtekOne's annualized ROA % for the fiscal year that ended in Dec. 2022 is calculated as:

ROA %	=	Net Income (A: Dec. 2022 )	/	( (Total Assets (A: Dec. 2021 )	+	Total Assets (A: Dec. 2022 ))	/ count )
	=	32.311	/	( (1056.561	+	998.902)	/ 2 )
	=	32.311	/	1027.7315
	=	3.14 %

NewtekOne's annualized ROA % for the quarter that ended in Mar. 2023 is calculated as:

ROA %	=	Net Income (Q: Mar. 2023 )	/	( (Total Assets (Q: Dec. 2022 )	+	Total Assets (Q: Mar. 2023 ))	/ count )
	=	46.872	/	( (998.902	+	1249.739)	/ 2 )
	=	46.872	/	1124.3205
	=	4.17 %

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 (Mar. 2023) net income data. ROA % is displayed in the 30-year financial page.

NewtekOne (NAS:NEWT) 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: Mar. 2023 )
=	Net Income	/	Total Assets
=	46.872	/	1124.3205
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(46.872 / 171.464)	*	(171.464 / 1124.3205)
=	Net Margin %	*	Asset Turnover
=	27.34 %	*	0.1525
=	4.17 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

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.

NewtekOne ROA % Related Terms

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

NewtekOne (NAS:NEWT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » NewtekOne Inc (NAS:NEWT) » Definitions » ROA %

Comparable Companies

Traded in Other Exchanges

1N31:Germany

Address

4800 T Rex Avenue, Suite 120, Boca Raton, FL, USA, 33431

Website

https://www.newtekone.com

NewtekOne Inc, formerly Newtek Business Services Corp is a non-diversified closed-end management investment company. The firm's investment objective is to generate current income and capital appreciation. The company provides business solutions that are designed to help organizations to grow sales, reduce costs, and minimize risk. Its solutions include web design, domains, hosting, website security, and others.

Executives

Fernando Perez-hickman	director	200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Halli Razon-feingold	director	4800 T-REX AVENUE, SUITE 120, BOCA RATON FL 33019
Nicolas Young	officer: Chief Risk Officer	200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Nicholas J Leger	officer: Chief Accounting Officer	348 ALFRED STREET, NORTH BABYLON NY 11703
Christopher Towers	officer: Chief Accounting Officer	1981 MARCUS AVENUE, SUITE 130, LAKE SUCCESS NY 11042
Gregory L Zink	director	1981 MARCUS AVENUE, SUITE 130, LAKE SUCCESS NY 11042
Nilesh Joshi	officer: Chief Information Officer	5617 W. MOLLY LANE, PHOENIX AZ 85083
Dean Choksi	officer: Treasurer	212 WEST 35TH STREET, FLOOR 2, NEW YORK NY 10001
John Raven	officer: Chief Info. Security Officer
Richard J Salute	director	P O BOX 306, WOODBURY NY 11797
Michael Adam Schwartz	officer: Chief Legal Officer, Secretary	C/O NEWTEK BUSINESS SERVICES INC, 462 SEVENTH AVENUE, 14TH FLOOR, NEW YORK NY 10018
Barry Sloane	director, officer: CEO and President
Peter Mathison Downs	director	1440 PINEACRES BLVD, BAY SHORE NY 11706
Salvatore Francis Mulia	director	4 WHITNEY STREET EXTENSION, WESTPORT CT 06880
Jennifer Catherine Eddelson	officer: Principal Financial Officer	60 HEMPSTEAD AVENUE, 6TH FLOOR, WEST HEMPSTEAD NY 11552