ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. PT Indo Tambangraya Megah Tbk's annualizedNet Income for the quarter that ended in Dec. 2023 was $378 Mil.
PT Indo Tambangraya Megah Tbk's average Total Assets over the quarter that ended in Dec. 2023 was $2,168 Mil. Therefore, PT Indo Tambangraya Megah Tbk's annualized ROA % for the quarter that ended in Dec. 2023 was 17.43%.
The historical rank and industry rank for PT Indo Tambangraya Megah Tbk's ROA % or its related term are showing as below:
ITAYY'
s ROA % Range Over the Past 10 Years
Min: 3.36 Med: 17.35 Max: 57.81
Current: 20.69
During the past 13 years, PT Indo Tambangraya Megah Tbk's highest ROA % was 57.81%. The lowest was 3.36%. And the median was 17.35%.
ITAYY's ROA % is ranked better than 88.95% of 181
companies
in the Other Energy Sources industry
Industry Median: 2.52
vs ITAYY: 20.69
PT Indo Tambangraya Megah Tbk ROA % Historical 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.
Competitive Comparison of PT Indo Tambangraya Megah Tbk's ROA %
For the Thermal Coal subindustry, PT Indo Tambangraya Megah Tbk'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.
PT Indo Tambangraya Megah Tbk's ROA % Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, PT Indo Tambangraya Megah Tbk's ROA % distribution charts can be found below:
* The bar in red indicates where PT Indo Tambangraya Megah Tbk's ROA % falls into.
* 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 (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
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:
Note:
The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.
PT Indo Tambangraya Megah Tbk ROA % Related Terms
Thank you for viewing the detailed overview of PT Indo Tambangraya Megah Tbk's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
PT Indo Tambangraya Megah Tbk is an Indonesia-based coal mining company. It operates in three segments: Upstream business, which includes coal mining, blending, and sales; Energy supply chain management segment includes fuel distribution, sales, and logistics, as well as empowerment of internal mining contractors; and Downstream segment includes the development of power plants and renewable energy ventures. The company's geographical segments include Taiwan, China, Hong Kong, and Korea; Domestic; South East Asia (excluding Indonesia), India, and Pakistan; Japan; Europe; and Australia & Oceania.
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