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Megado Minerals (ASX:MEG) ROA % : -6.98% (As of Jun. 2024)


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What is Megado Minerals ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Megado Minerals's annualized Net Income for the quarter that ended in Jun. 2024 was A$-0.62 Mil. Megado Minerals's average Total Assets over the quarter that ended in Jun. 2024 was A$8.83 Mil. Therefore, Megado Minerals's annualized ROA % for the quarter that ended in Jun. 2024 was -6.98%.

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

ASX:MEG' s ROA % Range Over the Past 10 Years
Min: -119.62   Med: -16.6   Max: -8.32
Current: -8.32

During the past 4 years, Megado Minerals's highest ROA % was -8.32%. The lowest was -119.62%. And the median was -16.60%.

ASX:MEG's ROA % is ranked better than
62.4% of 2678 companies
in the Metals & Mining industry
Industry Median: -16.69 vs ASX:MEG: -8.32

Megado Minerals ROA % Historical Data

The historical data trend for Megado Minerals'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.

Megado Minerals ROA % Chart

Megado Minerals Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROA %
-13.57 -12.57 -119.62 -19.62

Megado Minerals Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROA % Get a 7-Day Free Trial -226.36 0.46 -26.08 -9.60 -6.98

Competitive Comparison of Megado Minerals's ROA %

For the Other Industrial Metals & Mining subindustry, Megado Minerals'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.


Megado Minerals's ROA % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Megado Minerals's ROA % falls into.



Megado Minerals ROA % Calculation

Megado Minerals's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=-1.365/( (4.915+9)/ 2 )
=-1.365/6.9575
=-19.62 %

Megado Minerals's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Jun. 2024 ))/ count )
=-0.616/( (9+8.661)/ 2 )
=-0.616/8.8305
=-6.98 %

* 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.


Megado Minerals  (ASX:MEG) 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: Jun. 2024 )
=Net Income/Total Assets
=-0.616/8.8305
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-0.616 / 0)*(0 / 8.8305)
=Net Margin %*Asset Turnover
=N/A %*0
=-6.98 %

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.


Megado Minerals ROA % Related Terms

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Megado Minerals Business Description

Traded in Other Exchanges
N/A
Address
197 St Georges Terrace, Level 12, Perth, WA, AUS, 6000
Megado Minerals Ltd is an exploration company focused on critical minerals in North America. The company's project portfolio includes North Fork Rare Earth Project. The North Fork Project is located north-west of Salmon in the Salmon Challis National Forest, Lemhi County, Idaho. The group operates in one industry being the exploration of critical minerals. The geographical areas that the entity operates in are Australia, USA and Ethiopia.