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Lords Chloro Alkali (BOM:500284) ROA % : 1.51% (As of Dec. 2024)


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What is Lords Chloro Alkali ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lords Chloro Alkali's annualized Net Income for the quarter that ended in Dec. 2024 was ₹51 Mil. Lords Chloro Alkali's average Total Assets over the quarter that ended in Dec. 2024 was ₹3,351 Mil. Therefore, Lords Chloro Alkali's annualized ROA % for the quarter that ended in Dec. 2024 was 1.51%.

The historical rank and industry rank for Lords Chloro Alkali's ROA % or its related term are showing as below:

BOM:500284' s ROA % Range Over the Past 10 Years
Min: -1.92   Med: 6.12   Max: 24.31
Current: 1.28

During the past 13 years, Lords Chloro Alkali's highest ROA % was 24.31%. The lowest was -1.92%. And the median was 6.12%.

BOM:500284's ROA % is ranked worse than
63.55% of 1561 companies
in the Chemicals industry
Industry Median: 2.79 vs BOM:500284: 1.28

Lords Chloro Alkali ROA % Historical Data

The historical data trend for Lords Chloro Alkali'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.

Lords Chloro Alkali ROA % Chart

Lords Chloro Alkali 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 6.10 -1.16 17.00 24.31 -1.92

Lords Chloro Alkali Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -5.54 -0.08 2.98 0.43 1.51

Competitive Comparison of Lords Chloro Alkali's ROA %

For the Chemicals subindustry, Lords Chloro Alkali'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.


Lords Chloro Alkali's ROA % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Lords Chloro Alkali's ROA % distribution charts can be found below:

* The bar in red indicates where Lords Chloro Alkali's ROA % falls into.


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Lords Chloro Alkali ROA % Calculation

Lords Chloro Alkali'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 )
=-47.951/( (2376.646+2623.528)/ 2 )
=-47.951/2500.087
=-1.92 %

Lords Chloro Alkali's annualized ROA % for the quarter that ended in Dec. 2024 is calculated as:

ROA %=Net Income (Q: Dec. 2024 )/( (Total Assets (Q: Sep. 2024 )+Total Assets (Q: Dec. 2024 ))/ count )
=50.656/( (3350.928+0)/ 1 )
=50.656/3350.928
=1.51 %

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


Lords Chloro Alkali  (BOM:500284) 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: Dec. 2024 )
=Net Income/Total Assets
=50.656/3350.928
=(Net Income / Revenue)*(Revenue / Total Assets)
=(50.656 / 2591.268)*(2591.268 / 3350.928)
=Net Margin %*Asset Turnover
=1.95 %*0.7733
=1.51 %

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


Lords Chloro Alkali ROA % Related Terms

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Lords Chloro Alkali Business Description

Traded in Other Exchanges
Address
Defence Colony, A-284, 1st Floor, New Delhi, IND, 110024
Lords Chloro Alkali Ltd is engaged in manufacturing caustic soda and other chemicals. The company's products include caustic soda, liquid chlorine, hydrochloric acid, calcium hypo chloride- bleach liquor, stable bleaching powder, trichloroethylene, and hydrogen gas. The company supplies its products predominantly to the paper, soap, dyes, chemicals, and plastic industries based in the western parts of Uttar Pradesh, Haryana, Punjab, Rajasthan, and Delhi.

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