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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Advanced Energy Industries's annualized Net Income for the quarter that ended in Dec. 2024 was $195 Mil. Advanced Energy Industries's average Total Assets over the quarter that ended in Dec. 2024 was $2,227 Mil. Therefore, Advanced Energy Industries's annualized ROA % for the quarter that ended in Dec. 2024 was 8.78%.
The historical rank and industry rank for Advanced Energy Industries's ROA % or its related term are showing as below:
During the past 13 years, Advanced Energy Industries's highest ROA % was 24.65%. The lowest was -27.63%. And the median was 8.13%.
The historical data trend for Advanced Energy Industries'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.
Advanced Energy Industries Annual Data | |||||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | Dec24 | |||||||||||
ROA % | Get a 7-Day Free Trial |
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8.47 | 7.78 | 10.48 | 5.64 | 2.25 |
Advanced Energy Industries Quarterly Data | ||||||||||||||||||||
Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | Dec24 | |
ROA % | Get a 7-Day Free Trial |
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5.94 | 0.82 | 2.37 | -2.52 | 8.78 |
For the Electrical Equipment & Parts subindustry, Advanced Energy Industries'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.
For the Industrial Products industry and Industrials sector, Advanced Energy Industries's ROA % distribution charts can be found below:
* The bar in red indicates where Advanced Energy Industries's ROA % falls into.
Advanced Energy Industries's annualized ROA % for the fiscal year that ended in Dec. 2024 is calculated as:
ROA % | = | Net Income (A: Dec. 2024 ) | / | ( (Total Assets (A: Dec. 2023 ) | + | Total Assets (A: Dec. 2024 )) | / count ) |
= | 54.214 | / | ( (2556.757 | + | 2261.894) | / 2 ) | |
= | 54.214 | / | 2409.3255 | ||||
= | 2.25 % |
Advanced Energy Industries's annualized ROA % for the quarter that ended in Dec. 2024 is calculated as:
ROA % | = | Net Income (Q: Dec. 2024 ) | / | ( (Total Assets (Q: Sep. 2024 ) | + | Total Assets (Q: Dec. 2024 )) | / count ) |
= | 195.496 | / | ( (2192.86 | + | 2261.894) | / 2 ) | |
= | 195.496 | / | 2227.377 | ||||
= | 8.78 % |
* 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. 2024) net income data. ROA % is displayed in the 30-year financial page.
Advanced Energy Industries (NAS:AEIS) 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:
ROA % | (Q: Dec. 2024 ) | ||
= | Net Income | / | Total Assets |
= | 195.496 | / | 2227.377 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (195.496 / 1661.612) | * | (1661.612 / 2227.377) |
= | Net Margin % | * | Asset Turnover |
= | 11.77 % | * | 0.746 |
= | 8.78 % |
Note: The Net Income data used here is four times the quarterly (Dec. 2024) net income data. The Revenue data used here is four times the quarterly (Dec. 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.
Thank you for viewing the detailed overview of Advanced Energy Industries's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tina Donikowski | director | 1625 SHARP POINT DRIVE, FORT COLLINS CO 80525 |
Lanesha Minnix | director | TWO LAKESIDE COMMONS, BUILDING TWO, 980 HAMMOND DRIVE, SUITE 500, ATLANTA GA 30328 |
Frederick Ball | director | C/O MARKETO, INC., 901 MARINER'S ISLAND BLVD., SUITE 500, SAN MATEO CA 94404 |
Anne Delsanto | director | 1133 INNOVATION WAY, SUNNYVALE CA 94089 |
Ronald C Foster | director | 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716 |
Paul R Oldham | officer: EVP, CFO | 1625 SHARP POINT DRIVE, FORT COLLINS CO 80525 |
John Donaghey | officer: EVP, Global Sales | 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202 |
Brian Shirley | director | 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716 |
Elizabeth Karpinski Vonne | officer: EVP, General Counsel | 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202 |
Eduardo Bernal Acebedo | officer: EVP and COO | 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202 |
Reed David | director | 6501 WILLIAM CANNON DRIVE WEST, AUSTIN TX 78735 |
Stephen Douglas Kelley | officer: President and CEO | 1900 S. PRICE ROAD, CHANDLER AZ 85286 |
Yuval Wasserman | officer: EVP, Sales, Service & Mktg | 1625 SHARP POINT DRIVE, FORT COLLINS CO 80525 |
Dana Edward Huth | officer: CHIEF REVENUE OFFICER | 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202 |
Thomas O Mcgimpsey | officer: EVP Gen Counsel & Corp Sec | 380 INTERLOCKEN CRESCENT, BROOMFIELD CO 80021 |
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