GURUFOCUS.COM » STOCK LIST » USA » NYSE » TE Connectivity Ltd (NYSE:TEL) » Definitions » ROA %
Switch to:

TE Connectivity ROA %

: 11.10% (As of Jun. 2022)
View and export this data going back to 2007. Start your Free Trial

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. TE Connectivity's annualized Net Income for the quarter that ended in Jun. 2022 was $2,376 Mil. TE Connectivity's average Total Assets over the quarter that ended in Jun. 2022 was $21,400 Mil. Therefore, TE Connectivity's annualized ROA % for the quarter that ended in Jun. 2022 was 11.10%.

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

TEL' s ROA % Range Over the Past 10 Years
Min: -1.24   Med: 9.21   Max: 12.89
Current: 11.78

During the past 13 years, TE Connectivity's highest ROA % was 12.89%. The lowest was -1.24%. And the median was 9.21%.

TEL's ROA % is ranked better than
88.17% of 2392 companies
in the Hardware industry
Industry Median: 3.88 vs TEL: 11.78

TE Connectivity ROA % Historical Data

The historical data trend for TE Connectivity'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.

TE Connectivity Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.09 12.89 9.20 -1.24 11.11

TE Connectivity Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 11.04 14.94 10.56 10.45 11.10

Competitive Comparison

For the Electronic Components subindustry, TE Connectivity'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.

   

TE Connectivity ROA % Distribution

For the Hardware industry and Technology sector, TE Connectivity's ROA % distribution charts can be found below:

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



TE Connectivity ROA % Calculation

TE Connectivity's annualized ROA % for the fiscal year that ended in Sep. 2021 is calculated as:

ROA %=Net Income (A: Sep. 2021 )/( (Total Assets (A: Sep. 2020 )+Total Assets (A: Sep. 2021 ))/ count )
=2261/( (19242+21462)/ 2 )
=2261/20352
=11.11 %

TE Connectivity's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Jun. 2022 ))/ count )
=2376/( (21451+21348)/ 2 )
=2376/21399.5
=11.10 %

* 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. 2022) net income data. ROA % is displayed in the 30-year financial page.


TE Connectivity  (NYSE:TEL) 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: Jun. 2022 )
=Net Income/Total Assets
=2376/21399.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2376 / 16388)*(16388 / 21399.5)
=Net Margin %*Asset Turnover
=14.5 %*0.7658
=11.10 %

Note: The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 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.


TE Connectivity ROA % Related Terms

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


TE Connectivity Business Description

TE Connectivity logo
Traded in Other Exchanges
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE Connectivity has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Lin Syaru Shirley director
Stucki Aaron Kyle officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE BERWYN PA 19312
Dugle Lynn A director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Willoughby Dawn C director 1221 BROADWAY OAKLAND CA 94612
Rock Kevin N officer: President, Industrial Solution 1050 WESTLAKES DRIVE BERWYN PA 19312
Kerko David M director C/O KKR 9 WEST 57TH STREET, 41ST FLOOR NEW YORK NY 10019
Kroeger Shadrak W officer: Pres., Communications Solution 1050 WESTLAKES DRIVE BERWYN PA 19312
Talwalkar Abhijit Y director ONE AMD PLACE PO BOX 3453 SUNNYVALE CA 94088
Mitts Heath A officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT SUITE 200 LAKE FOREST IL 60045
Murphy Tim officer: SVP & CHRO 1050 WESTLAKES DRIVE BERWYN PA 19312
Trudeau Mark director COVIDIEN PLC 15 HAMPSHIRE STREET MANSFIELD MA 02048
Davidson Carol Anthony director
Wright Laura director 2702 LOVE FIELD DRIVE P.O. BOX 36611 DALLAS TX 75235-1611
Jenkins John S officer: EVP & General Counsel 1050 WESTLAKES DRIVE BERWYN PA 19312
Gambill Bradley Alan officer: SVP, Strategy & Business Dev. 1050 WESTLAKES DRIVE BERWYN PA 19312

TE Connectivity Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)