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Sepura (STU:3SE) ROA % : -39.36% (As of Sep. 2016)


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What is Sepura ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sepura's annualized Net Income for the quarter that ended in Sep. 2016 was €-123.9 Mil. Sepura's average Total Assets over the quarter that ended in Sep. 2016 was €314.8 Mil. Therefore, Sepura's annualized ROA % for the quarter that ended in Sep. 2016 was -39.36%.

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

STU:3SE's ROA % is not ranked *
in the Hardware industry.
Industry Median: 2.325
* Ranked among companies with meaningful ROA % only.

Sepura ROA % Historical Data

The historical data trend for Sepura'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.

Sepura ROA % Chart

Sepura Annual Data
Trend Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.74 9.06 11.31 11.15 -4.57

Sepura Semi-Annual Data
Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16
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 5.73 15.69 -4.97 -2.80 -39.36

Competitive Comparison of Sepura's ROA %

For the Communication Equipment subindustry, Sepura'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.


Sepura's ROA % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Sepura's ROA % distribution charts can be found below:

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



Sepura ROA % Calculation

Sepura's annualized ROA % for the fiscal year that ended in Mar. 2016 is calculated as:

ROA %=Net Income (A: Mar. 2016 )/( (Total Assets (A: Mar. 2015 )+Total Assets (A: Mar. 2016 ))/ count )
=-10.852/( (145.857+328.882)/ 2 )
=-10.852/237.3695
=-4.57 %

Sepura's annualized ROA % for the quarter that ended in Sep. 2016 is calculated as:

ROA %=Net Income (Q: Sep. 2016 )/( (Total Assets (Q: Mar. 2016 )+Total Assets (Q: Sep. 2016 ))/ count )
=-123.9/( (328.882+300.716)/ 2 )
=-123.9/314.799
=-39.36 %

* 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. 2016) net income data. ROA % is displayed in the 30-year financial page.


Sepura  (STU:3SE) 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. 2016 )
=Net Income/Total Assets
=-123.9/314.799
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-123.9 / 86.66)*(86.66 / 314.799)
=Net Margin %*Asset Turnover
=-142.97 %*0.2753
=-39.36 %

Note: The Net Income data used here is two times the semi-annual (Sep. 2016) net income data. The Revenue data used here is two times the semi-annual (Sep. 2016) 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.


Sepura ROA % Related Terms

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Sepura (STU:3SE) Business Description

Traded in Other Exchanges
N/A
Address
Sepura PLC is a public limited company incorporated and domiciled in England and Wales on January 16, 2002. The Company is engaged in the design, development and supply of digital radio solutions, complementary accessories, support tools and devices. Its solutions bring together radio infrastructure, terminals and data applications.

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