GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ASE Technology Holding Co Ltd (TPE:3711) » Definitions » ROA %

ASE Technology Holding Co (TPE:3711) ROA % : 7.68% (As of Dec. 2023)


View and export this data going back to 1989. Start your Free Trial

What is ASE Technology Holding Co ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. ASE Technology Holding Co's annualized Net Income for the quarter that ended in Dec. 2023 was NT$52,500 Mil. ASE Technology Holding Co's average Total Assets over the quarter that ended in Dec. 2023 was NT$684,000 Mil. Therefore, ASE Technology Holding Co's annualized ROA % for the quarter that ended in Dec. 2023 was 7.68%.

The historical rank and industry rank for ASE Technology Holding Co's ROA % or its related term are showing as below:

TPE:3711' s ROA % Range Over the Past 10 Years
Min: 3.13   Med: 5.87   Max: 9.57
Current: 5.18

During the past 13 years, ASE Technology Holding Co's highest ROA % was 9.57%. The lowest was 3.13%. And the median was 5.87%.

TPE:3711's ROA % is ranked better than
65.16% of 996 companies
in the Semiconductors industry
Industry Median: 2.405 vs TPE:3711: 5.18

ASE Technology Holding Co ROA % Historical Data

The historical data trend for ASE Technology Holding Co'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.

ASE Technology Holding Co ROA % Chart

ASE Technology Holding Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.13 4.73 9.57 8.91 5.16

ASE Technology Holding Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 8.38 3.36 4.59 5.11 7.68

Competitive Comparison of ASE Technology Holding Co's ROA %

For the Semiconductors subindustry, ASE Technology Holding Co'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.


ASE Technology Holding Co's ROA % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ASE Technology Holding Co's ROA % distribution charts can be found below:

* The bar in red indicates where ASE Technology Holding Co's ROA % falls into.



ASE Technology Holding Co ROA % Calculation

ASE Technology Holding Co's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=35457.908/( (707589.842+666915.692)/ 2 )
=35457.908/687252.767
=5.16 %

ASE Technology Holding Co's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=52499.632/( (701084+666915.692)/ 2 )
=52499.632/683999.846
=7.68 %

* 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.


ASE Technology Holding Co  (TPE:3711) 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: Dec. 2023 )
=Net Income/Total Assets
=52499.632/683999.846
=(Net Income / Revenue)*(Revenue / Total Assets)
=(52499.632 / 642325.884)*(642325.884 / 683999.846)
=Net Margin %*Asset Turnover
=8.17 %*0.9391
=7.68 %

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.


ASE Technology Holding Co ROA % Related Terms

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


ASE Technology Holding Co (TPE:3711) Business Description

Traded in Other Exchanges
Address
No. 26, Chin Third Road, Nanzih District, Kaohsiung, TWN, 811
ASE Technology Holding Co Ltd is a semiconductor assembly and testing firm. The company operates in segments: Packaging, Testing, and Electronic Manufacturing Services. Of these, packaging services contribute the most revenue. It involves packaging bare semiconductors into completed semiconductors with improved electrical and thermal characteristics. The Testing Segment includes front-end engineering testing, wafer probing, and final testing services. In the EMS segment, the company designs manufacture, and sells electronic components and telecommunication equipment motherboards. The company is based in Taiwan but garners over half its sales from firms in the United States.

ASE Technology Holding Co (TPE:3711) Headlines

No Headlines