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Youdao ROA %

: -18.93% (As of Sep. 2021)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Youdao's annualized Net Income for the quarter that ended in Sep. 2021 was $-79.9 Mil. Youdao's average Total Assets over the quarter that ended in Sep. 2021 was $421.8 Mil. Therefore, Youdao's annualized ROA % for the quarter that ended in Sep. 2021 was -18.93%.

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

NYSE:DAO' s ROA % Range Over the Past 10 Years
Min: -87.3   Med: -67.76   Max: -44.26
Current: -57.23

-87.3
-44.26

During the past 4 years, Youdao's highest ROA % was -44.26%. The lowest was -87.30%. And the median was -67.76%.

NYSE:DAO's ROA % is ranked lower than
99.99% of the 78 Companies
in the Interactive Media industry.

( Industry Median: 3.70 vs. NYSE:DAO: -57.23 )

Youdao ROA % Historical Data

The historical data trend for Youdao'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.

Youdao Annual Data
Trend Dec17 Dec18 Dec19 Dec20
ROA %
-82.53 -52.98 -44.26 -87.30

Youdao Quarterly Data
Dec17 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -168.51 -91.63 -50.16 -69.07 -18.93

Competitive Comparison

For the Internet Content & Information subindustry, Youdao'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.

   

Youdao ROA % Distribution

For the Interactive Media industry and Communication Services sector, Youdao's ROA % distribution charts can be found below:

* The bar in red indicates where Youdao's ROA % falls into.



Youdao ROA % Calculation

Youdao'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 )
=-268.03923967397/( (297.48406689764+316.58556726255)/ 2 )
=-268.03923967397/307.0348170801
=-87.30 %

Youdao'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 )
=-79.858742623484/( (463.80513618677+379.80979818162)/ 2 )
=-79.858742623484/421.8074671842
=-18.93 %

* 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.


Youdao  (NYSE:DAO) 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 bank’s 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
=-79.858742623484/421.8074671842
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-79.858742623484 / 859.49661570869)*(859.49661570869 / 421.8074671842)
=Net Margin %*Asset Turnover
=-9.29 %*2.0377
=-18.93 %

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.


Youdao ROA % Related Terms

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


Youdao Business Description

Youdao logo
Industry
Traded in Other Exchanges
Address
No. 399, Wangshang Road, Binjiang District, Hangzhou, CHN, 310051
Youdao Inc develops and markets software applications. It engages in developing technologies to provide learning content, applications, and solutions. The firm operates in three segments: Learning services, Learning products, and Online marketing services. Nearly half of its revenues come from the Learning services segment, which generates revenues from online courses, mainly including Youdao Premium Courses, NetEase Cloud Classroom, and China University MOOC. The learning products segment includes sales of smart devices such as Youdao Dictionary Pen and Youdao Pocket Translator. It generates revenues from the online marketing services through the provision of different formats of advertisement, including but not limited to banners, text links, videos, logos, buttons, and rich media.

Youdao Headlines

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