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Great Plains Energy (Great Plains Energy) ROA %

: 1.12% (As of Mar. 2018)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Great Plains Energy's annualized Net Income for the quarter that ended in Mar. 2018 was $140.00 Mil. Great Plains Energy's average Total Assets over the quarter that ended in Mar. 2018 was $12,453.15 Mil. Therefore, Great Plains Energy's annualized ROA % for the quarter that ended in Mar. 2018 was 1.12%.

The historical rank and industry rank for Great Plains Energy's ROA % or its related term are showing as below:

GXPPL.PFD' s ROA % Range Over the Past 10 Years
Min: -0.82   Med: 2.26   Max: 2.57
Current: -0.42

During the past 13 years, Great Plains Energy's highest ROA % was 2.57%. The lowest was -0.82%. And the median was 2.26%.

GXPPL.PFD's ROA % is not ranked
in the Utilities - Regulated industry.
Industry Median: 2.945 vs GXPPL.PFD: -0.42

Great Plains Energy ROA % Historical Data

The historical data trend for Great Plains Energy'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 2.57 [6] => 2.40 [7] => 2.01 [8] => 2.39 [9] => -0.82 )
Great Plains Energy Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.57 2.40 2.01 2.39 -0.82

Great Plains Energy Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
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 -0.24 -0.16 0.28 -3.22 1.12

Competitive Comparison

For the Utilities - Regulated Electric subindustry, Great Plains Energy'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.


Great Plains Energy ROA % Distribution

For the Utilities - Regulated industry and Utilities sector, Great Plains Energy's ROA % distribution charts can be found below:

* The bar in red indicates where Great Plains Energy's ROA % falls into.



Great Plains Energy ROA % Calculation

Great Plains Energy's annualized ROA % for the fiscal year that ended in Dec. 2017 is calculated as:

ROA %=Net Income (A: Dec. 2017 )/( (Total Assets (A: Dec. 2016 )+Total Assets (A: Dec. 2017 ))/ count )
=-106.2/( (13570+12457.9)/ 2 )
=-106.2/13013.95
=-0.82 %

Great Plains Energy's annualized ROA % for the quarter that ended in Mar. 2018 is calculated as:

ROA %=Net Income (Q: Mar. 2018 )/( (Total Assets (Q: Dec. 2017 )+Total Assets (Q: Mar. 2018 ))/ count )
=140/( (12457.9+12448.4)/ 2 )
=140/12453.15
=1.12 %

* 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 (Mar. 2018) net income data. ROA % is displayed in the 30-year financial page.


Great Plains Energy  (OTCPK:GXPPL.PFD) 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. 2018 )
=Net Income/Total Assets
=140/12453.15
=(Net Income / Revenue)*(Revenue / Total Assets)
=(140 / 2335.6)*(2335.6 / 12453.15)
=Net Margin %*Asset Turnover
=5.99 %*0.1876
=1.12 %

Note: The Net Income data used here is four times the quarterly (Mar. 2018) net income data. The Revenue data used here is four times the quarterly (Mar. 2018) 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.


Great Plains Energy ROA % Related Terms

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Great Plains Energy (Great Plains Energy) Business Description

Traded in Other Exchanges
N/A
Address
Great Plains Energy is the holding company of Kansas City Power & Light and Greater Missouri Operations. The two regulated utilities provide electric service to roughly 900,000 customers in the Kansas City area and nearby western Missouri and eastern Kansas. The company has about 6.5 gigawatts of generating capacity. More than 80% of its electricity generation is from coal-fired plants, approximately 15% comes from its co-owned Wolf Creek nuclear plant, and the remainder is from gas, oil, and wind farms.

Great Plains Energy (Great Plains Energy) Headlines

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