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Omnova Solutions (Omnova Solutions) ROA % : -2.81% (As of Feb. 2020)


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What is Omnova Solutions ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Omnova Solutions's annualized Net Income for the quarter that ended in Feb. 2020 was $-15.6 Mil. Omnova Solutions's average Total Assets over the quarter that ended in Feb. 2020 was $555.3 Mil. Therefore, Omnova Solutions's annualized ROA % for the quarter that ended in Feb. 2020 was -2.81%.

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

OMN's ROA % is not ranked *
in the Chemicals industry.
Industry Median: 2.88
* Ranked among companies with meaningful ROA % only.

Omnova Solutions ROA % Historical Data

The historical data trend for Omnova Solutions'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.

Omnova Solutions ROA % Chart

Omnova Solutions Annual Data
Trend Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.35 -0.06 -13.51 3.44 -3.91

Omnova Solutions Quarterly Data
May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20
ROA % Get a 7-Day Free Trial 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 -3.14 3.85 0.21 -16.83 -2.81

Competitive Comparison of Omnova Solutions's ROA %

For the Specialty Chemicals subindustry, Omnova Solutions'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.


Omnova Solutions's ROA % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Omnova Solutions's ROA % distribution charts can be found below:

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



Omnova Solutions ROA % Calculation

Omnova Solutions's annualized ROA % for the fiscal year that ended in Nov. 2019 is calculated as:

ROA %=Net Income (A: Nov. 2019 )/( (Total Assets (A: Nov. 2018 )+Total Assets (A: Nov. 2019 ))/ count )
=-22.4/( (589.2+556.1)/ 2 )
=-22.4/572.65
=-3.91 %

Omnova Solutions's annualized ROA % for the quarter that ended in Feb. 2020 is calculated as:

ROA %=Net Income (Q: Feb. 2020 )/( (Total Assets (Q: Nov. 2019 )+Total Assets (Q: Feb. 2020 ))/ count )
=-15.6/( (556.1+554.4)/ 2 )
=-15.6/555.25
=-2.81 %

* 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 (Feb. 2020) net income data. ROA % is displayed in the 30-year financial page.


Omnova Solutions  (NYSE:OMN) 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: Feb. 2020 )
=Net Income/Total Assets
=-15.6/555.25
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-15.6 / 622.4)*(622.4 / 555.25)
=Net Margin %*Asset Turnover
=-2.51 %*1.1209
=-2.81 %

Note: The Net Income data used here is four times the quarterly (Feb. 2020) net income data. The Revenue data used here is four times the quarterly (Feb. 2020) 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.


Omnova Solutions ROA % Related Terms

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Omnova Solutions (Omnova Solutions) Business Description

Traded in Other Exchanges
N/A
Address
25435 Harvard Road, Beachwood, OH, USA, 44122-6201
Omnova Solutions Inc manufactures and sells a variety of chemicals and chemical-based products. The firm organizes itself into two segments based on the product type. Its performance materials segment, which sells latex, lubricants, plastics, and powders used in the production of paper and packaging materials, carpets, tires, cords, synthetic latex gloves, and rubber products. The specialty chemical segment sells vinyl acrylics, styrene, plastic pigments, and polyethylene resins used in the production of textiles, oil and gas, coatings, construction materials, and personal care products. It generates a majority of revenue from the Specialty Solutions segment. Geographically, the company's majority of revenue comes from the United States.
Executives
Anne P Noonan officer: President & CEO 25435 HARVARD RD, BEACHWOOD OH 44122
Allan R Rothwell director C/O COMPASS MINERALS, 9900 WEST 109TH STREET, SUITE 600, OVERLAND PARK KS 66210
James A Mitarotonda director 888 SEVENTH AVENUE 17TH FL, NEW YORK NY 10019
Joseph M Gingo director 3550 WEST MARKET STREET, AKRON OH 44333
Michael J Merriman director C/O RC2 CORPORATION, 1111 WEST 22ND STREET, SUITE 320, OAK BROOK IL 60523
David J Dantoni director C/O COMPASS MINERALS, 9900 WEST 109TH STREET, SUITE 600, OVERLAND PARK KS 66210
Janet Plaut Giesselman director 25435 HARVARD RD., BEACHWOOD OH 44122
Larry B Porcellato director ICI PAINTS, 15885 SPRAGUE ROAD, CLEVELAND OH 44136
Paul F Desantis officer: SVP, CFO; Treasurer 25435 HARVARD RD, BEACHWOOD OH 44122-6201
Donald B. Mcmillan officer: Chief Accounting Officer 25435 HARVARD RD, BEACHWOOD OH 44122
Robert A Stefanko director 3550 W MARKET ST, AKRON OH 44333
Edward P Campbell director C/O KEYCORP, 127 PUBLIC SQUARE, CLEVELAND OH 44114
David A. Daberko director C/O MARATHON PETROLEUM CORPORATION, 539 S. MAIN STREET, FINDLAY OH 45840
Gregory T Troy officer: Senior VP Human Resources C/O KAMAN CORPORATION, PO BOX 1, BLOOMFIELD CT 06002