ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Flight Centre Travel Group's annualizedNet Income for the quarter that ended in Jun. 2024 was A$106 Mil.
Flight Centre Travel Group's average Total Assets over the quarter that ended in Jun. 2024 was A$4,044 Mil. Therefore, Flight Centre Travel Group's annualized ROA % for the quarter that ended in Jun. 2024 was 2.62%.
The historical rank and industry rank for Flight Centre Travel Group's ROA % or its related term are showing as below:
ASX:FLT'
s ROA % Range Over the Past 10 Years
Min: -17.68 Med: 5.34 Max: 9.87
Current: 3.34
During the past 13 years, Flight Centre Travel Group's highest ROA % was 9.87%. The lowest was -17.68%. And the median was 5.34%.
ASX:FLT's ROA % is ranked better than 59.04% of 835
companies
in the Travel & Leisure industry
Industry Median: 2.08
vs ASX:FLT: 3.34
* 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 Flight Centre Travel Group's ROA %
For the Travel Services subindustry, Flight Centre Travel Group'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.
Flight Centre Travel Group's ROA % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Flight Centre Travel Group's ROA % distribution charts can be found below:
* The bar in red indicates where Flight Centre Travel Group's ROA % falls into.
Flight Centre Travel Group ROA % Calculation
Flight Centre Travel Group's annualized ROA % for the fiscal year that ended in Jun. 2024 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 (Jun. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Flight Centre Travel Group (ASX:FLT) 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 (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
Flight Centre Travel Group ROA % Related Terms
Thank you for viewing the detailed overview of Flight Centre Travel Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Flight Centre Travel is one of the largest travel agencies in the world. The group generates just over 50% of its total transaction value, or TTV, from the corporate market, just under 50% from the leisure market, and the rest from ancillary travel-related activities. In corporate travel, Flight Centre is a global Top 4 player operating in over 100 countries, with different brands catering to various customer segments (small and midsize businesses to large enterprises). In leisure, Flight Centre operates a network of over 550 shops generating 70% of the leisure TTV, online channels generating just under 20%, and the rest from independent agents. Over half of group TTV is generated in Australia and New Zealand, 20% from Americas, just under 20% from Europe, and the rest from Asia.
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