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Diamond Offshore Drilling ROA %

: -2.27% (As of Mar. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Diamond Offshore Drilling's annualized Net Income for the quarter that ended in Mar. 2022 was $-34.4 Mil. Diamond Offshore Drilling's average Total Assets over the quarter that ended in Mar. 2022 was $1,512.7 Mil. Therefore, Diamond Offshore Drilling's annualized ROA % for the quarter that ended in Mar. 2022 was -2.27%.

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

DO' s ROA % Range Over the Past 10 Years
Min: -2.27   Med: 0   Max: 0
Current: -2.27

DO's ROA % is ranked worse than
65.61% of 1105 companies
in the Oil & Gas industry
Industry Median: 2.37 vs DO: -2.27

Diamond Offshore Drilling ROA % Historical Data

The historical data trend for Diamond Offshore Drilling'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.

Diamond Offshore Drilling Annual Data
Trend
ROA %

Diamond Offshore Drilling Semi-Annual Data
Mar21 Mar22
ROA % - -2.27

Competitive Comparison

For the Oil & Gas Drilling subindustry, Diamond Offshore Drilling'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.

   

Diamond Offshore Drilling ROA % Distribution

For the Oil & Gas industry and Energy sector, Diamond Offshore Drilling's ROA % distribution charts can be found below:

* The bar in red indicates where Diamond Offshore Drilling's ROA % falls into.



Diamond Offshore Drilling ROA % Calculation

Diamond Offshore Drilling's annualized ROA % for the fiscal year that ended in . 20 is calculated as:

ROA %=Net Income (A: . 20 )/( (Total Assets (A: . 20 )+Total Assets (A: . 20 ))/ count )
=/( (+)/ )
=/
= %

Diamond Offshore Drilling's annualized ROA % for the quarter that ended in Mar. 2022 is calculated as:

ROA %=Net Income (Q: Mar. 2022 )/( (Total Assets (Q: Mar. 2021 )+Total Assets (Q: Mar. 2022 ))/ count )
=-34.354/( (0+1512.736)/ 1 )
=-34.354/1512.736
=-2.27 %

* 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 one times the annual (Mar. 2022) net income data. ROA % is displayed in the 30-year financial page.


Diamond Offshore Drilling  (NYSE:DO) 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: Mar. 2022 )
=Net Income/Total Assets
=-34.354/1512.736
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-34.354 / 186.239)*(186.239 / 1512.736)
=Net Margin %*Asset Turnover
=-18.45 %*0.1231
=-2.27 %

Note: The Net Income data used here is one times the annual (Mar. 2022) net income data. The Revenue data used here is one times the annual (Mar. 2022) 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.


Diamond Offshore Drilling ROA % Related Terms

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


Diamond Offshore Drilling Business Description

Diamond Offshore Drilling logo
Traded in Other Exchanges
N/A
Address
Website
Diamond Offshore Drilling Inc is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe with a total fleet of 12 offshore drilling rigs, consisting of eight semisubmersibles and four dynamically positioned drillships.
Executives
Duster Benjamin director 200 E. 84ST, 8TH FLOOR NEW YORK NY 10028
Launy Ane director 15415 KATY FREEWAY SUITE 100 HOUSTON TX 77094
Iyer Raj director 15415 KATY FREEWAY SUITE 100 HOUSTON TX 77094
Hollowell John director ONE SHELL PLAZA 910 LOUISIANA STREET HOUSTON TX 77002
Goldman Neal P director 10700 PARKRIDGE BLVD. RESTON VA 20191
Wolford Bernie G. director, officer: President and CEO DORFSTRASSE 19A 6340 BAAR V8 00000
Peakes Adam C director 13135 S. DAIRY ASHFORD, STE. 800 SUGAR LAND TX 77478
Lowe Patrick Carey director 6 CHESTERFIELD GARDENS 3RD FLOOR LONDON X0 W1J 5BQ
Savarino Dominic A officer: VP and Chief Acct/Tax Officer 757 N. ELDRIDGE PARKWAY HOUSTON TX 77079
Mcteague Peter director 15415 KATY FREEWAY SUITE 100 HOUSTON TX 77094
Howard Alan H director
Feygin Anatol director 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Kornblau Scott Lee officer: Acting Chief Financial Officer 15415 KATY FREEWAY SUITE 100 HOUSTON TX 77094
Roth Thomas officer: Senior Vice President 15415 KATY FREEWAY SUITE 100 HOUSTON TX 77094
Youngblood Kelly officer: Senior Vice President - CFO 15415 KATY FREEWAY SUITE 100 HOUSTON TX 77094
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