ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Arem Pacific's annualizedNet Income for the quarter that ended in Mar. 2024 was $-0.04 Mil.
Arem Pacific's average Total Assets over the quarter that ended in Mar. 2024 was $0.25 Mil. Therefore, Arem Pacific's annualized ROA % for the quarter that ended in Mar. 2024 was -15.97%.
The historical rank and industry rank for Arem Pacific's ROA % or its related term are showing as below:
ARPC's ROA % is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 1.75 * Ranked among companies with meaningful ROA % only.
Arem Pacific (OTCPK:ARPC) 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 (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
Arem Pacific ROA % Related Terms
Arem Pacific ROA % Historical Data
* Premium members only.
The historical data trend for Arem Pacific'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.
For the Medical Care Facilities subindustry, Arem Pacific'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.
Arem Pacific ROA % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Arem Pacific's ROA % distribution charts can be found below:
* The bar in red indicates where Arem Pacific's ROA % falls into.
* 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 (Mar. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Arem Pacific (ARPC) has a ROA % of -15.97% as of Mar. 2024. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Arem Pacific and its competitors.
Is Arem Pacific's ROA % too high?
Arem Pacific's current ROA % is -15.97%.
How does Arem Pacific's ROA % compare to GBNHF and FCHS?
Arem Pacific's ROA % of -15.97% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROA % is 1.75. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Healthcare Providers & Services company?
The median ROA % among Healthcare Providers & Services companies is 1.75, based on 686 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Arem Pacific and its competitors. For the Healthcare Providers & Services industry, the median ROA % is 1.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arem Pacific's current ROA % is -15.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arem Pacific stock overvalued right now?
Arem Pacific (ARPC) has a current ROA % of -15.97%. The current ROA % is -15.97%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Arem Pacific (ARPC), the current ROA % is -15.97% as of Mar. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Arem Pacific Corporation is engaged in providing wellness services. The company operates in one industry and one geographical segment, those being Oriental holistic health services and Australia. The Wellness center provides services including Acupressure/Reflexology which is acupuncture without needles, Massage Therapy involving application of soft-tissue manipulation techniques to the body and Cupping involving warming of glass cups through a flammable substance. It also offers Neck, shoulder, back, legs, full body massages and deep tissue and hot oil massage. It derives revenues through the provision of therapeutic health services from its Oriental holistic health centres.
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