ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Northern Graphite's annualizedNet Income for the quarter that ended in Sep. 2023 was C$-27.31 Mil.
Northern Graphite's average Total Assets over the quarter that ended in Sep. 2023 was C$98.02 Mil. Therefore, Northern Graphite's annualized ROA % for the quarter that ended in Sep. 2023 was -27.86%.
The historical rank and industry rank for Northern Graphite's ROA % or its related term are showing as below:
TSXV:NGC'
s ROA % Range Over the Past 10 Years
Min: -23.97 Med: -7.13 Max: -3.77
Current: -20.17
During the past 13 years, Northern Graphite's highest ROA % was -3.77%. The lowest was -23.97%. And the median was -7.13%.
TSXV:NGC's ROA % is ranked worse than 55.73% of 2697
companies
in the Metals & Mining industry
Industry Median: -14.84
vs TSXV:NGC: -20.17
Northern Graphite ROA % Historical Data
The historical data trend for Northern Graphite'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.
Competitive Comparison of Northern Graphite's ROA %
For the Other Industrial Metals & Mining subindustry, Northern Graphite'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.
Northern Graphite's ROA % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Northern Graphite's ROA % distribution charts can be found below:
* The bar in red indicates where Northern Graphite's ROA % falls into.
Northern Graphite ROA % Calculation
Northern Graphite's annualized ROA % for the fiscal year that ended in Dec. 2022 is calculated as:
* 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 (Sep. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Northern Graphite (TSXV:NGC) 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 banks 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:
Note:
The Net Income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 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.
Northern Graphite ROA % Related Terms
Thank you for viewing the detailed overview of Northern Graphite's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Northern Graphite Corp is a Canada-based exploration stage company engaged in the exploration and development of mineral resource properties. The company is focused on producing natural graphite and upgrading it into high-value products critical to the green economy including anode material for lithium-ion batteries/EVs, fuel cells, and graphene, as well as advanced industrial technologies. Its exploration and development activities are focused on the Bissett Creek Property in Ontario, Canada, and Okanjande in Namibia.
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