ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hindustan Unilever's annualizedNet Income for the quarter that ended in Mar. 2024 was ₹102,320 Mil.
Hindustan Unilever's average Total Assets over the quarter that ended in Mar. 2024 was ₹784,990 Mil. Therefore, Hindustan Unilever's annualized ROA % for the quarter that ended in Mar. 2024 was 13.03%.
The historical rank and industry rank for Hindustan Unilever's ROA % or its related term are showing as below:
NSE:HINDUNILVR'
s ROA % Range Over the Past 10 Years
Min: 12.75 Med: 29.94 Max: 34.8
Current: 13.89
During the past 13 years, Hindustan Unilever's highest ROA % was 34.80%. The lowest was 12.75%. And the median was 29.94%.
NSE:HINDUNILVR's ROA % is ranked better than 91.55% of 1905
companies
in the Consumer Packaged Goods industry
Industry Median: 2.96
vs NSE:HINDUNILVR: 13.89
Hindustan Unilever ROA % Historical Data
The historical data trend for Hindustan Unilever'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.
Competitive Comparison of Hindustan Unilever's ROA %
For the Household & Personal Products subindustry, Hindustan Unilever'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.
Hindustan Unilever's ROA % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hindustan Unilever's ROA % distribution charts can be found below:
* The bar in red indicates where Hindustan Unilever's ROA % falls into.
Hindustan Unilever ROA % Calculation
Hindustan Unilever's annualized ROA % for the fiscal year that ended in Mar. 2024 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 (Mar. 2024) net income data.
ROA % is displayed in the 30-year financial page.
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 (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) 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.
Hindustan Unilever ROA % Related Terms
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Hindustan Unilever (NSE:HINDUNILVR) Business Description
Hindustan Unilever Ltd is an Indian consumer goods company. The firm's offering is diverse, as it includes over 50 brands from 16 distinct categories, from cosmetics and hygienic items (detergents, soaps, shampoos, skincare, toothpaste, and deodorants), to food and beverages (tea, coffee, packaged foods). Its product portfolio contains household brands such as Lux, Lifebuoy, Pepsodent, Closeup, Pureit, Axe, Brooke Bond, Bru, Knorr, Kissan, Pond's, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Kwality Wall's, Surf Excel, Rin, Wheel, and Fair and Lovely.
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