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Compagnie Financiere Richemont ROA %

: 4.25% (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. Compagnie Financiere Richemont's annualized Net Income for the quarter that ended in Mar. 2022 was $1,855 Mil. Compagnie Financiere Richemont's average Total Assets over the quarter that ended in Mar. 2022 was $43,631 Mil. Therefore, Compagnie Financiere Richemont's annualized ROA % for the quarter that ended in Mar. 2022 was 4.25%.

The historical rank and industry rank for Compagnie Financiere Richemont's ROA % or its related term are showing as below:

CFRHF' s ROA % Range Over the Past 10 Years
Min: 3.09   Med: 6.42   Max: 15.44
Current: 5.5

During the past 13 years, Compagnie Financiere Richemont's highest ROA % was 15.44%. The lowest was 3.09%. And the median was 6.42%.

CFRHF's ROA % is ranked better than
66.13% of 1119 companies
in the Retail - Cyclical industry
Industry Median: 2.86 vs CFRHF: 5.50

Compagnie Financiere Richemont ROA % Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

Compagnie Financiere Richemont Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.66 9.94 3.16 4.09 5.30

Compagnie Financiere Richemont Semi-Annual Data
Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22
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 0.42 1.04 6.74 6.80 4.25

Competitive Comparison

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

   

Compagnie Financiere Richemont ROA % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Compagnie Financiere Richemont's ROA % distribution charts can be found below:

* The bar in red indicates where Compagnie Financiere Richemont's ROA % falls into.



Compagnie Financiere Richemont ROA % Calculation

Compagnie Financiere Richemont's annualized ROA % for the fiscal year that ended in Mar. 2022 is calculated as:

ROA %=Net Income (A: Mar. 2022 )/( (Total Assets (A: Mar. 2021 )+Total Assets (A: Mar. 2022 ))/ count )
=2284.140969163/( (42094.047619048+44037.444933921)/ 2 )
=2284.140969163/43065.746276484
=5.30 %

Compagnie Financiere Richemont's annualized ROA % for the quarter that ended in Mar. 2022 is calculated as:

ROA %=Net Income (Q: Mar. 2022 )/( (Total Assets (Q: Sep. 2021 )+Total Assets (Q: Mar. 2022 ))/ count )
=1854.6255506608/( (43224.705882353+44037.444933921)/ 2 )
=1854.6255506608/43631.075408137
=4.25 %

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


Compagnie Financiere Richemont  (OTCPK:CFRHF) 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
=1854.6255506608/43631.075408137
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1854.6255506608 / 22629.955947137)*(22629.955947137 / 43631.075408137)
=Net Margin %*Asset Turnover
=8.2 %*0.5187
=4.25 %

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


Compagnie Financiere Richemont ROA % Related Terms

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Compagnie Financiere Richemont Business Description

Compagnie Financiere Richemont logo
Address
50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Compagnie Financiere Richemont Headlines

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