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Hindustan Zinc (BOM:500188) ROA % : 28.59% (As of Sep. 2024)


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What is Hindustan Zinc ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hindustan Zinc's annualized Net Income for the quarter that ended in Sep. 2024 was ₹93,080 Mil. Hindustan Zinc's average Total Assets over the quarter that ended in Sep. 2024 was ₹325,520 Mil. Therefore, Hindustan Zinc's annualized ROA % for the quarter that ended in Sep. 2024 was 28.59%.

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

BOM:500188' s ROA % Range Over the Past 10 Years
Min: 15.22   Med: 18.54   Max: 26.23
Current: 25.75

During the past 13 years, Hindustan Zinc's highest ROA % was 26.23%. The lowest was 15.22%. And the median was 18.54%.

BOM:500188's ROA % is ranked better than
97.76% of 2678 companies
in the Metals & Mining industry
Industry Median: -16.715 vs BOM:500188: 25.75

Hindustan Zinc ROA % Historical Data

The historical data trend for Hindustan Zinc'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.

Hindustan Zinc ROA % Chart

Hindustan Zinc Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.22 17.22 21.30 26.23 22.37

Hindustan Zinc Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.56 22.94 24.05 27.67 28.59

Competitive Comparison of Hindustan Zinc's ROA %

For the Other Industrial Metals & Mining subindustry, Hindustan Zinc'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.


Hindustan Zinc's ROA % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Hindustan Zinc's ROA % falls into.



Hindustan Zinc ROA % Calculation

Hindustan Zinc's annualized ROA % for the fiscal year that ended in Mar. 2024 is calculated as:

ROA %=Net Income (A: Mar. 2024 )/( (Total Assets (A: Mar. 2023 )+Total Assets (A: Mar. 2024 ))/ count )
=77590/( (354670+338950)/ 2 )
=77590/346810
=22.37 %

Hindustan Zinc's annualized ROA % for the quarter that ended in Sep. 2024 is calculated as:

ROA %=Net Income (Q: Sep. 2024 )/( (Total Assets (Q: Jun. 2024 )+Total Assets (Q: Sep. 2024 ))/ count )
=93080/( (0+325520)/ 1 )
=93080/325520
=28.59 %

* 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 (Sep. 2024) net income data. ROA % is displayed in the 30-year financial page.


Hindustan Zinc  (BOM:500188) 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: Sep. 2024 )
=Net Income/Total Assets
=93080/325520
=(Net Income / Revenue)*(Revenue / Total Assets)
=(93080 / 320160)*(320160 / 325520)
=Net Margin %*Asset Turnover
=29.07 %*0.9835
=28.59 %

Note: The Net Income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 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.


Hindustan Zinc ROA % Related Terms

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Hindustan Zinc Business Description

Traded in Other Exchanges
Address
Yashad Bhavan, Udaipur, RJ, IND, 313004
Hindustan Zinc Ltd is engaged in exploring, extracting, processing minerals, and manufacturing metals. The company is focused on mining and smelting zinc, Lead, and silver and also power generation through captive power plants and wind power plants. The company produces products under the brand name HZL and Vedanta. The segments of the company include Zinc, Lead, Silver, and others; and Wind energy. The company generates the majority of its revenues through Zinc, Lead, silver, and other segments. The company has a business presence in India, Asia, and the Rest of the World of which India derives a majority of the revenue.

Hindustan Zinc Headlines

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