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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The New Home Co's annualized Net Income for the quarter that ended in Jun. 2021 was $19.1 Mil. The New Home Co's average Total Assets over the quarter that ended in Jun. 2021 was $542.6 Mil. Therefore, The New Home Co's annualized ROA % for the quarter that ended in Jun. 2021 was 3.52%.
The historical rank and industry rank for The New Home Co's ROA % or its related term are showing as below:
During the past 10 years, The New Home Co's highest ROA % was 8.21%. The lowest was -5.97%. And the median was 0.61%.
The historical data trend for The New Home Co'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.
The New Home Co Annual Data | |||||||||||||||||||||
Trend | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | |||||||||||
ROA % | Get a 7-Day Free Trial | 5.46 | 3.23 | -2.12 | -1.24 | -5.97 |
The New Home Co Quarterly Data | ||||||||||||||||||||
Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | |
ROA % | Get a 7-Day Free Trial | -17.33 | 0.87 | -0.95 | 0.43 | 3.52 |
For the Residential Construction subindustry, The New Home Co'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.
For the Homebuilding & Construction industry and Consumer Cyclical sector, The New Home Co's ROA % distribution charts can be found below:
* The bar in red indicates where The New Home Co's ROA % falls into.
The New Home Co'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 ) |
= | -32.819 | / | ( (603.189 | + | 495.699) | / 2 ) | |
= | -32.819 | / | 549.444 | ||||
= | -5.97 % |
The New Home Co's annualized ROA % for the quarter that ended in Jun. 2021 is calculated as:
ROA % | = | Net Income (Q: Jun. 2021 ) | / | ( (Total Assets (Q: Mar. 2021 ) | + | Total Assets (Q: Jun. 2021 )) | / count ) |
= | 19.096 | / | ( (539.732 | + | 545.486) | / 2 ) | |
= | 19.096 | / | 542.609 | ||||
= | 3.52 % |
* 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 (Jun. 2021) net income data. ROA % is displayed in the 30-year financial page.
The New Home Co (NYSE:NWHM) 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: Jun. 2021 ) | ||
= | Net Income | / | Total Assets |
= | 19.096 | / | 542.609 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (19.096 / 562.104) | * | (562.104 / 542.609) |
= | Net Margin % | * | Asset Turnover |
= | 3.4 % | * | 1.0359 |
= | 3.52 % |
Note: The Net Income data used here is four times the quarterly (Jun. 2021) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Thank you for viewing the detailed overview of The New Home Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Paul C Heeschen | director | 450 NEWPORT CENTER DRIVE STE 450 NEWPORT BEACH CA 92660 |
Cathey S Lowe | director | |
Douglas C Neff | director, 10 percent owner, other: See "Remarks" below. | 19800 MACARTHUR BLVD. SUITE 700 IRVINE CA 92612 |
Wayne Stelmar | director, other: See "Remarks" below. | THE NEW HOME COMPANY 95 ENTERPRISE, SUITE 325 ALISO VIEJO CA 92656 |
Sam Bakhshandehpour | director | THE NEW HOME COMPANY, 95 ENTERPRISE, SUITE 325, ALISO VIEJO CA 92656 |
Michael Berchtold | director | THE NEW HOME COMPANY 95 ENTERPRISE, SUITE 325 ALISO VIEJO CA 92656 |
Gregory P. Lindstrom | director | THE NEW HOME COMPANY 95 ENTERPRISE, SUITE 325 ALISO VIEJO CA 92656 |
Leonard Stoudt Miller | officer: President & CEO | 85 ENTERPRISE SUITE 450 ALISO VIEJO CA 92656 |
John Martin Stephens | officer: EVP, Chief Financial Officer | 26 TECHNOLOGY DRIVE, IRVINE CA 92618 |
H Lawrence Webb | director, officer: Executive Chairman, other: See "Remarks" below. | THE NEW HOME COMPANY 85 ENTERPRISE, SUITE 450 ALISO VIEJO CA 92656 |
William A. Witte | director | THE NEW HOME COMPANY 95 ENTERPRISE, SUITE 325 ALISO VIEJO CA 92656 |
Thomas Redwitz | other: See "Remarks" below. | THE NEW HOME COMPANY 95 ENTERPRISE, SUITE 325 ALISO VIEJO CA 92656 |
Second Curve Capital Llc | 10 percent owner | 150 N RADNOR CHESTER ROAD, SUITE F120, RADNOR PA 19087 |
Thomas K Brown | 10 percent owner | C/O SECOND CURVE CAPITAL, LLC, 237 PARK AVENUE, 9TH FLOOR, NEW YORK NY 10017 |
Tricon Us Topco Llc | other: See remarks | 1067 YONGE STREET TORONTO A6 M4W 2L2 |
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