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AMRRY (American Rare Earths) ROA % : -25.88% (As of Dec. 2023)


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What is American Rare Earths ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. American Rare Earths's annualized Net Income for the quarter that ended in Dec. 2023 was $-4.24 Mil. American Rare Earths's average Total Assets over the quarter that ended in Dec. 2023 was $16.40 Mil. Therefore, American Rare Earths's annualized ROA % for the quarter that ended in Dec. 2023 was -25.88%.

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

AMRRY' s ROA % Range Over the Past 10 Years
Min: -33.12   Med: -18.04   Max: 27.98
Current: -22.63

During the past 14 years, American Rare Earths's highest ROA % was 27.98%. The lowest was -33.12%. And the median was -18.04%.

AMRRY's ROA % is ranked worse than
55.49% of 2678 companies
in the Metals & Mining industry
Industry Median: -16.715 vs AMRRY: -22.63

American Rare Earths ROA % Historical Data

The historical data trend for American Rare Earths'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.

American Rare Earths ROA % Chart

American Rare Earths Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.17 -3.23 -14.71 -22.21 -20.78

American Rare Earths Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -14.33 -15.30 -22.04 -25.88 -21.58

Competitive Comparison of American Rare Earths's ROA %

For the Other Industrial Metals & Mining subindustry, American Rare Earths'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.


American Rare Earths's ROA % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, American Rare Earths's ROA % distribution charts can be found below:

* The bar in red indicates where American Rare Earths's ROA % falls into.



American Rare Earths ROA % Calculation

American Rare Earths's annualized ROA % for the fiscal year that ended in Jun. 2023 is calculated as:

ROA %=Net Income (A: Jun. 2023 )/( (Total Assets (A: Jun. 2022 )+Total Assets (A: Jun. 2023 ))/ count )
=-3.253/( (11.895+17.393)/ 2 )
=-3.253/14.644
=-22.21 %

American Rare Earths's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Jun. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=-4.244/( (17.393+15.403)/ 2 )
=-4.244/16.398
=-25.88 %

* 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 (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


American Rare Earths  (OTCPK:AMRRY) 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
=-4.244/16.398
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-4.244 / 0)*(0 / 16.398)
=Net Margin %*Asset Turnover
=N/A %*0
=-25.88 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.


American Rare Earths ROA % Related Terms

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American Rare Earths Business Description

Traded in Other Exchanges
Address
Level 7, 89 York Street, Suite 706, Sydney, NSW, AUS, 2000
American Rare Earths Ltd is a mining and exploration company. It is focused on the discovery and development of strategic mineral resources. The projects of the company include exploration in the Murray Basin region, Beaver Creek project, La Paz Rare Earth project, and the Searchlight Project. The Company has two reportable segments, being the geographic location of assets in United States and Australia.