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IHS Markit ROA %

: 3.90% (As of Aug. 2021)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. IHS Markit's annualized Net Income for the quarter that ended in Aug. 2021 was $645 Mil. IHS Markit's average Total Assets over the quarter that ended in Aug. 2021 was $16,546 Mil. Therefore, IHS Markit's annualized ROA % for the quarter that ended in Aug. 2021 was 3.90%.

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

NYSE:INFO' s ROA % Range Over the Past 10 Years
Min: 1.57   Med: 3.6   Max: 5.4
Current: 3.78

1.57
5.4

During the past 13 years, IHS Markit's highest ROA % was 5.40%. The lowest was 1.57%. And the median was 3.60%.

NYSE:INFO's ROA % is ranked higher than
54% of the 1054 Companies
in the Business Services industry.

( Industry Median: 3.10 vs. NYSE:INFO: 3.78 )

IHS Markit ROA % Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.57 2.93 3.54 3.13 5.40

IHS Markit Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.03 3.73 3.64 3.82 3.90

Competitive Comparison

For the Consulting Services subindustry, IHS Markit'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.

   

IHS Markit ROA % Distribution

For the Business Services industry and Industrials sector, IHS Markit's ROA % distribution charts can be found below:

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



IHS Markit ROA % Calculation

IHS Markit's annualized ROA % for the fiscal year that ended in Nov. 2020 is calculated as:

ROA %=Net Income (A: Nov. 2020 )/( (Total Assets (A: Nov. 2019 )+Total Assets (A: Nov. 2020 ))/ count )
=870.7/( (16087.2+16135.2)/ 2 )
=870.7/16111.2
=5.40 %

IHS Markit's annualized ROA % for the quarter that ended in Aug. 2021 is calculated as:

ROA %=Net Income (Q: Aug. 2021 )/( (Total Assets (Q: May. 2021 )+Total Assets (Q: Aug. 2021 ))/ count )
=645.2/( (16594.6+16496.5)/ 2 )
=645.2/16545.55
=3.90 %

* 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 (Aug. 2021) net income data. ROA % is displayed in the 30-year financial page.


IHS Markit  (NYSE:INFO) 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: Aug. 2021 )
=Net Income/Total Assets
=645.2/16545.55
=(Net Income / Revenue)*(Revenue / Total Assets)
=(645.2 / 4722)*(4722 / 16545.55)
=Net Margin %*Asset Turnover
=13.66 %*0.2854
=3.90 %

Note: The Net Income data used here is four times the quarterly (Aug. 2021) net income data. The Revenue data used here is four times the quarterly (Aug. 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.


IHS Markit ROA % Related Terms

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


IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

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