ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Arch Capital Group's annualizedNet Income for the quarter that ended in Sep. 2024 was $3,952 Mil.
Arch Capital Group's average Total Assets over the quarter that ended in Sep. 2024 was $69,561 Mil. Therefore, Arch Capital Group's annualized ROA % for the quarter that ended in Sep. 2024 was 5.68%.
The historical rank and industry rank for Arch Capital Group's ROA % or its related term are showing as below:
ACGL'
s ROA % Range Over the Past 10 Years
Min: 2.02 Med: 3.32 Max: 9.04
Current: 9.04
During the past 13 years, Arch Capital Group's highest ROA % was 9.04%. The lowest was 2.02%. And the median was 3.32%.
ACGL's ROA % is ranked better than 91.74% of 484
companies
in the Insurance industry
Industry Median: 2.395
vs ACGL: 9.04
Arch Capital Group ROA % Historical Data
The historical data trend for Arch Capital Group'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 Arch Capital Group's ROA %
For the Insurance - Diversified subindustry, Arch Capital Group'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.
Arch Capital Group's ROA % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Arch Capital Group's ROA % distribution charts can be found below:
* The bar in red indicates where Arch Capital Group's ROA % falls into.
Arch Capital Group ROA % Calculation
Arch Capital Group's annualized ROA % for the fiscal year that ended in Dec. 2023 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. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Arch Capital Group (NAS:ACGL) 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. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) 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.
Arch Capital Group ROA % Related Terms
Thank you for viewing the detailed overview of Arch Capital Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage two operating segments: corporate and other. The insurance segment provides specialty risk solutions to client across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.
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