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Virgin Australia HoldingsASX:VGN -0.35%12 ROA % is 13.56% as of Dec. 2025, which is 38% above its 10-year median of 9.82. GuruFocus rates ASX:VGN with a GF Score™ of 12/100. The stock has 5 warning signs investors should review. Among 1,009 Transportation companies, Virgin Australia Holdings ranks better than 75.72% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Virgin Australia Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was A$682 Mil.
Virgin Australia Holdings's average Total Assets over the quarter that ended in Dec. 2025 was A$5,032 Mil. Therefore, Virgin Australia Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 13.56%.
The historical rank and industry rank for Virgin Australia Holdings's ROA % or its related term are showing as below:
ASX:VGN'
s ROA % Range Over the Past 10 Years
Min: 7.11 Med: 9.82 Max: 9.82
Current: 7.11
During the past 3 years, Virgin Australia Holdings's highest ROA % was 9.82%. The lowest was 7.11%. And the median was 9.82%.
ASX:VGN's ROA % is ranked better than 75.72% of 1009
companies
in the Transportation industry
Industry Median: 3.49
vs ASX:VGN: 7.11
Virgin Australia Holdings (ASX:VGN) 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. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
* 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 Airlines subindustry, Virgin Australia 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.
Virgin Australia Holdings ROA % vs Transportation Industry
For the Transportation industry and Industrials sector, Virgin Australia Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Virgin Australia Holdings'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 two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Virgin Australia Holdings (ASX:VGN) has a ROA % of 13.56% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Virgin Australia Holdings and its competitors. This is 38% above median its historical median of 9.82. Over the past decade, Virgin Australia Holdings' ROA % has ranged from 7.11 to 9.82. According to the industry distribution chart, Virgin Australia Holdings ranks #245 out of 1009 companies in the Transportation industry, placing it in the top 24.3%.
Is Virgin Australia Holdings' ROA % too high?
Virgin Australia Holdings' current ROA % of 13.56% is 38% above median its 10-year median of 9.82. Over the past 10 years, this metric has ranged from a low of 7.11 to a high of 9.82. The Transportation industry median ROA % is 3.49. Virgin Australia Holdings' value of 13.56% is 288.5% above this industry median. Based on the distribution chart, Virgin Australia Holdings ranks #245 out of 1009 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Virgin Australia Holdings has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Virgin Australia Holdings' ROA % compare to DAL and UAL?
According to the Transportation industry distribution chart, Virgin Australia Holdings ranks #245 out of 1009 companies for ROA %. This places Virgin Australia Holdings in the top 24% of its industry — outperforming the majority of peers. The industry median ROA % is 3.49. Virgin Australia Holdings' value of 13.56% is 288.5% above this benchmark. Historically, Virgin Australia Holdings' own ROA % has ranged from 7.11 to 9.82 over the past decade. While the company's 10-year median is 9.82 vs. the industry median of 3.49, Virgin Australia Holdings has consistently been above the industry average. 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 Transportation company?
The median ROA % among Transportation companies is 3.49, based on 1,009 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. Virgin Australia Holdings's current ROA % of 13.56% is 288.5% above the industry median. 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 Virgin Australia Holdings and its competitors. For the Transportation industry, the median ROA % is 3.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virgin Australia Holdings's current ROA % is 13.56%, which is 38% above median its own 10-year median of 9.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virgin Australia Holdings stock overvalued right now?
Virgin Australia Holdings (ASX:VGN) has a current ROA % of 13.56%. The current ROA % is 13.56%, which is 38% above median its 10-year median of 9.82 and 288.5% above the Transportation industry median of 3.49. Virgin Australia Holdings' overall GF Score™ is 12/100 with 5 warning signs to review. 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 Virgin Australia Holdings (ASX:VGN), the current ROA % is 13.56% as of Dec. 2025. 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.
Virgin Australia is Australia's second-largest airline, operating about a third of the domestic market in a two-player market with Qantas. Virgin is a value-focused carrier operating high-frequency, point-to-point domestic routes and select short-haul international flights. The airline targets leisure and small to medium enterprise travelers with mid-range pricing. The vast majority of revenue is generated by the core airlines segment.
12GF Score
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