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Lonmin (Lonmin) ROA % : 22.69% (As of Sep. 2018)


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What is Lonmin ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lonmin's annualized Net Income for the quarter that ended in Sep. 2018 was $216 Mil. Lonmin's average Total Assets over the quarter that ended in Sep. 2018 was $952 Mil. Therefore, Lonmin's annualized ROA % for the quarter that ended in Sep. 2018 was 22.69%.

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

LNMIY's ROA % is not ranked *
in the Metals & Mining industry.
Industry Median: -14.915
* Ranked among companies with meaningful ROA % only.

Lonmin ROA % Historical Data

The historical data trend for Lonmin'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.

Lonmin ROA % Chart

Lonmin Annual Data
Trend Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.19 -48.90 -15.38 -68.95 4.49

Lonmin Semi-Annual Data
Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18
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 -31.13 -19.02 -121.49 -14.86 22.69

Competitive Comparison of Lonmin's ROA %

For the Other Industrial Metals & Mining subindustry, Lonmin'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.


Lonmin's ROA % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Lonmin's ROA % distribution charts can be found below:

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



Lonmin ROA % Calculation

Lonmin's annualized ROA % for the fiscal year that ended in Sep. 2018 is calculated as:

ROA %=Net Income (A: Sep. 2018 )/( (Total Assets (A: Sep. 2017 )+Total Assets (A: Sep. 2018 ))/ count )
=42/( (871+999)/ 2 )
=42/935
=4.49 %

Lonmin's annualized ROA % for the quarter that ended in Sep. 2018 is calculated as:

ROA %=Net Income (Q: Sep. 2018 )/( (Total Assets (Q: Mar. 2018 )+Total Assets (Q: Sep. 2018 ))/ count )
=216/( (905+999)/ 2 )
=216/952
=22.69 %

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


Lonmin  (OTCPK:LNMIY) 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: Sep. 2018 )
=Net Income/Total Assets
=216/952
=(Net Income / Revenue)*(Revenue / Total Assets)
=(216 / 1568)*(1568 / 952)
=Net Margin %*Asset Turnover
=13.78 %*1.6471
=22.69 %

Note: The Net Income data used here is two times the semi-annual (Sep. 2018) net income data. The Revenue data used here is two times the semi-annual (Sep. 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.


Lonmin ROA % Related Terms

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Lonmin (Lonmin) Business Description

Traded in Other Exchanges
N/A
Address
Middelkraal Farm, LPD Building, P.O. Box x508, Marikana, North West Province, Rustenburg, ZAF, 0284
Lonmin PLC engages in exploring, mining, smelting, refining and marketing of platinum along with is associated group metals the Platinum Group Metals (PGM). Platinum is the primary product that the company offers and it accounts for the most of the company revenue. It also deals in the by-products that are produced from PGM mining which includes gold, copper, nickel, chrome and cobalt. Through its mining operations at Marikana located in Brits, South Africa the firm produces most of the group's total production other locations being Pandora and Akanani. Lonmin serves the Chinese and Japanese markets and generates the majority of its revenue through the sale of platinum.

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