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Peloton Interactive (NAS:PTON) ROA %

: -34.94% (As of Mar. 2023)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Peloton Interactive's annualized Net Income for the quarter that ended in Mar. 2023 was $-1,104 Mil. Peloton Interactive's average Total Assets over the quarter that ended in Mar. 2023 was $3,159 Mil. Therefore, Peloton Interactive's annualized ROA % for the quarter that ended in Mar. 2023 was -34.94%.

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

PTON' s ROA % Range Over the Past 10 Years
Min: -66.42   Med: -17.66   Max: -3.72
Current: -61.98

During the past 6 years, Peloton Interactive's highest ROA % was -3.72%. The lowest was -66.42%. And the median was -17.66%.

PTON's ROA % is ranked worse than
97.59% of 829 companies
in the Travel & Leisure industry
Industry Median: 0.85 vs PTON: -61.98

Peloton Interactive ROA % Historical Data

The historical data trend for Peloton Interactive'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.

Peloton Interactive Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
ROA %
Premium Member Only -17.66 -34.45 -3.72 -5.06 -66.42

Peloton Interactive Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 -61.20 -118.94 -42.88 -38.92 -34.94

Competitive Comparison

For the Leisure subindustry, Peloton Interactive'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.

   

Peloton Interactive ROA % Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Peloton Interactive's ROA % distribution charts can be found below:

* The bar in red indicates where Peloton Interactive's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.



Peloton Interactive ROA % Calculation

Peloton Interactive's annualized ROA % for the fiscal year that ended in Jun. 2022 is calculated as:

ROA %=Net Income (A: Jun. 2022 )/( (Total Assets (A: Jun. 2021 )+Total Assets (A: Jun. 2022 ))/ count )
=-2827.7/( (4485.6+4028.5)/ 2 )
=-2827.7/4257.05
=-66.42 %

Peloton Interactive's annualized ROA % for the quarter that ended in Mar. 2023 is calculated as:

ROA %=Net Income (Q: Mar. 2023 )/( (Total Assets (Q: Dec. 2022 )+Total Assets (Q: Mar. 2023 ))/ count )
=-1103.6/( (3301.1+3016.3)/ 2 )
=-1103.6/3158.7
=-34.94 %

* 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. 2023) net income data. ROA % is displayed in the 30-year financial page.


Peloton Interactive  (NAS:PTON) 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. 2023 )
=Net Income/Total Assets
=-1103.6/3158.7
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-1103.6 / 2995.2)*(2995.2 / 3158.7)
=Net Margin %*Asset Turnover
=-36.85 %*0.9482
=-34.94 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


Peloton Interactive ROA % Related Terms

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


Peloton Interactive (NAS:PTON) Business Description

Peloton Interactive logo
Traded in Other Exchanges
Address
441 Ninth Avenue, Sixth Floor, New York, NY, USA, 10001
Peloton Interactive Inc operates an interactive fitness platform. It operates its business in two reportable segments: Connected Fitness Products and Subscription. Connected Fitness Product revenue consists of sales of bike and tread and related accessories, associated fees for delivery and installation, and extended warranty agreements. Subscription revenue consists of revenue generated from monthly Connected Fitness Subscription and Digital Subscription. The company generates the majority of the revenue from the sale of Connected Fitness Products.
Executives
Saqib Baig officer: Chief Accounting Officer C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Jennifer Cunningham Cotter officer: Chief Content Officer C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Elizabeth F Coddington officer: Chief Financial Officer C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Andrew S Rendich officer: Chief Supply Chain Officer 100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Barry Mccarthy director, officer: CEO and President 100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Jonathan Mildenhall director C/O GRAUBARD MILLER, 405 LEXINGTON AVENUE, NEW YORK NY 10174
Angel L Mendez director C/O SLEEP NUMBER CORPORATION, 1001 THIRD AVENUE SOUTH, MINNEAPOLIS MN 55404
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Kevin Cornils officer: Chief Commercial Officer C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Tcv Ix (a), L.p. other: May be part of 13(d) group 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv X (a), L.p. other: May be part of 13(d) group 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv X Cycle (mf), L.p. other: May be part of 13(d) group 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv Ix, L.p. 10 percent owner, other: May be part of 13(d) group 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv Ix Cycle, L.p. 10 percent owner, other: May be part of 13(d) group 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Technology Crossover Management X, Ltd. other: May be part of 13(d) group C/O TECHNOLOGY CROSSOVER VENTURES, 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025

Peloton Interactive (NAS:PTON) Headlines

Other Sources

Peloton Stock Loses a Bull on Demand Concerns

By Yahoo Finance 2023-01-24