ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Deterra Royalties's annualizedNet Income for the quarter that ended in Dec. 2023 was A$157.4 Mil.
Deterra Royalties's average Total Assets over the quarter that ended in Dec. 2023 was A$107.1 Mil. Therefore, Deterra Royalties's annualized ROA % for the quarter that ended in Dec. 2023 was 147.01%.
The historical rank and industry rank for Deterra Royalties's ROA % or its related term are showing as below:
ASX:DRR'
s ROA % Range Over the Past 10 Years
Min: 105.8 Med: 114.73 Max: 171.42
Current: 171.42
During the past 3 years, Deterra Royalties's highest ROA % was 171.42%. The lowest was 105.80%. And the median was 114.73%.
ASX:DRR's ROA % is ranked better than 99.48% of 2698
companies
in the Metals & Mining industry
Industry Median: -14.885
vs ASX:DRR: 171.42
Deterra Royalties ROA % Historical Data
The historical data trend for Deterra Royalties'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 Deterra Royalties's ROA %
For the Other Industrial Metals & Mining subindustry, Deterra Royalties'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.
Deterra Royalties's ROA % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Deterra Royalties's ROA % distribution charts can be found below:
* The bar in red indicates where Deterra Royalties's ROA % falls into.
Deterra Royalties ROA % Calculation
Deterra Royalties's annualized ROA % for the fiscal year that ended in Jun. 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 two times the semi-annual (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Deterra Royalties (ASX:DRR) 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 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.
Deterra Royalties ROA % Related Terms
Thank you for viewing the detailed overview of Deterra Royalties's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Deterra Royalties was spun out from Iluka Resources in October 2020 with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area, located in the Pilbara region of Western Australia. The royalty area includes the North Flank mine, producing approximately 60 million metric tons of iron ore a year, and the South Flank mine, expected to add a further 85 million metric tons a year by 2024 after producing first ore in 2021. The MAC royalty area also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Deterra's strategy is to grow into a diversified royalty company.
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