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Arax Holdings (Arax Holdings) ROA % : 2.01% (As of Jan. 2024)


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What is Arax Holdings ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Arax Holdings's annualized Net Income for the quarter that ended in Jan. 2024 was $0.14 Mil. Arax Holdings's average Total Assets over the quarter that ended in Jan. 2024 was $7.17 Mil. Therefore, Arax Holdings's annualized ROA % for the quarter that ended in Jan. 2024 was 2.01%.

The historical rank and industry rank for Arax Holdings's ROA % or its related term are showing as below:

ARAT' s ROA % Range Over the Past 10 Years
Min: -1250   Med: -476.92   Max: -162.47
Current: -162.47

During the past 9 years, Arax Holdings's highest ROA % was -162.47%. The lowest was -1250.00%. And the median was -476.92%.

ARAT's ROA % is ranked worse than
96.19% of 2808 companies
in the Software industry
Industry Median: 1.2 vs ARAT: -162.47

Arax Holdings ROA % Historical Data

The historical data trend for Arax Holdings'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.

Arax Holdings ROA % Chart

Arax Holdings Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct20 Oct21 Oct22 Oct23
ROA %
Get a 7-Day Free Trial Premium Member Only - - - - -259.43

Arax Holdings Quarterly Data
Apr16 Jul16 Oct16 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 -1,620.39 -10.83 -40.86 -455.32 2.01

Competitive Comparison of Arax Holdings's ROA %

For the Software - Infrastructure subindustry, Arax Holdings'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.


Arax Holdings's ROA % Distribution in the Software Industry

For the Software industry and Technology sector, Arax Holdings's ROA % distribution charts can be found below:

* The bar in red indicates where Arax Holdings's ROA % falls into.



Arax Holdings ROA % Calculation

Arax Holdings's annualized ROA % for the fiscal year that ended in Oct. 2023 is calculated as:

ROA %=Net Income (A: Oct. 2023 )/( (Total Assets (A: Oct. 2022 )+Total Assets (A: Oct. 2023 ))/ count )
=-18.544/( (0+7.148)/ 1 )
=-18.544/7.148
=-259.43 %

Arax Holdings's annualized ROA % for the quarter that ended in Jan. 2024 is calculated as:

ROA %=Net Income (Q: Jan. 2024 )/( (Total Assets (Q: Oct. 2023 )+Total Assets (Q: Jan. 2024 ))/ count )
=0.144/( (7.148+7.194)/ 2 )
=0.144/7.171
=2.01 %

* 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 (Jan. 2024) net income data. ROA % is displayed in the 30-year financial page.


Arax Holdings  (OTCPK:ARAT) 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: Jan. 2024 )
=Net Income/Total Assets
=0.144/7.171
=(Net Income / Revenue)*(Revenue / Total Assets)
=(0.144 / 0.908)*(0.908 / 7.171)
=Net Margin %*Asset Turnover
=15.86 %*0.1266
=2.01 %

Note: The Net Income data used here is four times the quarterly (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 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.


Arax Holdings ROA % Related Terms

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Arax Holdings (Arax Holdings) Business Description

Traded in Other Exchanges
N/A
Address
30 North Gould Street, Sheridan, WY, USA, 82801
Arax Holdings Corp invests in TechFin and blockchain-based software solutions companies. The primary focus of Arax is to fuse decentralized solutions with financial service providers within multiple markets and communication networks to bring blockchain to everyday life.

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