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RAIT Financial Trust (OTCPK:RASJQ.PFD) ROA %

: 0.53% (As of Jun. 2019)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. RAIT Financial Trust's annualized Net Income for the quarter that ended in Jun. 2019 was $3.31 Mil. RAIT Financial Trust's average Total Assets over the quarter that ended in Jun. 2019 was $628.18 Mil. Therefore, RAIT Financial Trust's annualized ROA % for the quarter that ended in Jun. 2019 was 0.53%.

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

RASJQ.PFD' s ROA % Range Over the Past 10 Years
Min: -9.78   Med: -6.5   Max: 3.67
Current: -5.4

During the past 13 years, RAIT Financial Trust's highest ROA % was 3.67%. The lowest was -9.78%. And the median was -6.50%.

RASJQ.PFD's ROA % is not ranked
in the REITs industry.
Industry Median: 3.39 vs RASJQ.PFD: -5.40

RAIT Financial Trust (OTCPK:RASJQ.PFD) ROA % Historical Data

The historical data trend for RAIT Financial Trust'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.

RAIT Financial Trust Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.85 1.01 0.74 -7.23 -9.78

RAIT Financial Trust Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 -16.66 -8.05 -8.37 -3.52 0.53

RAIT Financial Trust (OTCPK:RASJQ.PFD) ROA % Competitive Comparison

For the REIT - Diversified subindustry, RAIT Financial Trust'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.

   

RAIT Financial Trust (OTCPK:RASJQ.PFD) ROA % Distribution

For the REITs industry and Real Estate sector, RAIT Financial Trust's ROA % distribution charts can be found below:

* The bar in red indicates where RAIT Financial Trust's ROA % falls into.



RAIT Financial Trust ROA % Calculation

RAIT Financial Trust's annualized ROA % for the fiscal year that ended in Dec. 2018 is calculated as:

ROA %=Net Income (A: Dec. 2018 )/( (Total Assets (A: Dec. 2017 )+Total Assets (A: Dec. 2018 ))/ count )
=-123.458/( (1791.833+733.764)/ 2 )
=-123.458/1262.7985
=-9.78 %

RAIT Financial Trust's annualized ROA % for the quarter that ended in Jun. 2019 is calculated as:

ROA %=Net Income (Q: Jun. 2019 )/( (Total Assets (Q: Mar. 2019 )+Total Assets (Q: Jun. 2019 ))/ count )
=3.308/( (673.782+582.578)/ 2 )
=3.308/628.18
=0.53 %

* 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 (Jun. 2019) net income data. ROA % is displayed in the 30-year financial page.


RAIT Financial Trust  (OTCPK:RASJQ.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: Jun. 2019 )
=Net Income/Total Assets
=3.308/628.18
=(Net Income / Revenue)*(Revenue / Total Assets)
=(3.308 / 12.264)*(12.264 / 628.18)
=Net Margin %*Asset Turnover
=26.97 %*0.0195
=0.53 %

Note: The Net Income data used here is four times the quarterly (Jun. 2019) net income data. The Revenue data used here is four times the quarterly (Jun. 2019) 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.


RAIT Financial Trust ROA % Related Terms

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


RAIT Financial Trust (OTCPK:RASJQ.PFD) Business Description

RAIT Financial Trust logo
Traded in Other Exchanges
Address
100 North 18th Street, Two Logan Square, 23rd Floor, Philadelphia, PA, USA, 19103
RAIT Financial Trust is a United States-based real estate investment trust. Through its subsidiaries, the company invests in and manages a portfolio of commercial real estate (CRE) loans and properties. It operates in the business segment of real estate lending, owning and managing segment which focuses on lending, owning and managing commercial real estate assets throughout the United States. The form of the company's investments ranged from first mortgage loans to equity ownership of a commercial real estate property. It derives main revenue in the form of property income.
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