Padam Cotton YarnsBOM:531395 -1.04%38 ROA % is 17.68% as of Mar. 2026, which is 646% above its 10-year median of 2.37. GuruFocus rates BOM:531395 with a GF Score™ of 38/100. The stock has 5 warning signs investors should review. Among 1,094 Business Services companies, Padam Cotton Yarns ranks better than 95.43% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Padam Cotton Yarns's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹173.4 Mil.
Padam Cotton Yarns's average Total Assets over the quarter that ended in Mar. 2026 was ₹980.5 Mil. Therefore, Padam Cotton Yarns's annualized ROA % for the quarter that ended in Mar. 2026 was 17.68%.
The historical rank and industry rank for Padam Cotton Yarns's ROA % or its related term are showing as below:
BOM:531395'
s ROA % Range Over the Past 10 Years
Min: -1 Med: 2.37 Max: 56.54
Current: 18.56
During the past 13 years, Padam Cotton Yarns's highest ROA % was 56.54%. The lowest was -1.00%. And the median was 2.37%.
BOM:531395's ROA % is ranked better than 95.43% of 1094
companies
in the Business Services industry
Industry Median: 3.435
vs BOM:531395: 18.56
Padam Cotton Yarns (BOM:531395) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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.
Padam Cotton Yarns ROA % Related Terms
Padam Cotton Yarns ROA % Historical Data
* Premium members only.
The historical data trend for Padam Cotton Yarns'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.
For the Consulting Services subindustry, Padam Cotton Yarns'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.
Padam Cotton Yarns ROA % vs Business Services Industry
For the Business Services industry and Industrials sector, Padam Cotton Yarns's ROA % distribution charts can be found below:
* The bar in red indicates where Padam Cotton Yarns'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 four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Padam Cotton Yarns (BOM:531395) has a ROA % of 17.68% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Padam Cotton Yarns and its competitors. This is 646% above median its historical median of 2.37. According to the industry distribution chart, Padam Cotton Yarns ranks #50 out of 1094 companies in the Business Services industry, placing it in the top 4.6%.
Is Padam Cotton Yarns' ROA % too high?
Padam Cotton Yarns' current ROA % of 17.68% is 646% above median its 10-year median of 2.37. The Business Services industry median ROA % is 3.44. Padam Cotton Yarns' value of 17.68% is 414.7% above this industry median. Based on the distribution chart, Padam Cotton Yarns ranks #50 out of 1094 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Padam Cotton Yarns has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Padam Cotton Yarns' ROA % compare to VRSK and EFX?
According to the Business Services industry distribution chart, Padam Cotton Yarns ranks #50 out of 1094 companies for ROA %. This places Padam Cotton Yarns in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 3.44. Padam Cotton Yarns' value of 17.68% is 414.7% above this benchmark. While the company's 10-year median is 2.37 vs. the industry median of 3.44, Padam Cotton Yarns 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 Business Services company?
The median ROA % among Business Services companies is 3.44, based on 1,094 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. Padam Cotton Yarns's current ROA % of 17.68% is 414.7% 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 Padam Cotton Yarns and its competitors. For the Business Services industry, the median ROA % is 3.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Padam Cotton Yarns's current ROA % is 17.68%, which is 646% above median its own 10-year median of 2.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Padam Cotton Yarns stock overvalued right now?
Padam Cotton Yarns (BOM:531395) has a current ROA % of 17.68%. The current ROA % is 17.68%, which is 646% above median its 10-year median of 2.37 and 414.7% above the Business Services industry median of 3.44. Padam Cotton Yarns' overall GF Score™ is 38/100 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 Padam Cotton Yarns (BOM:531395), the current ROA % is 17.68% as of Mar. 2026. 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.
Padam Cotton Yarns Ltd is engaged business of lending and investment in shares and securities and also derivatives of cotton futures at MCX. The company's revenues are generated from the consultation Income.
38GF Score
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