GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Aries Agro Ltd (BOM:532935) » Definitions » ROA %

Aries Agro (BOM:532935) ROA % : 13.20% (As of Sep. 2024)


View and export this data going back to 2008. Start your Free Trial

What is Aries Agro ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Aries Agro's annualized Net Income for the quarter that ended in Sep. 2024 was ₹755 Mil. Aries Agro's average Total Assets over the quarter that ended in Sep. 2024 was ₹5,718 Mil. Therefore, Aries Agro's annualized ROA % for the quarter that ended in Sep. 2024 was 13.20%.

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

BOM:532935' s ROA % Range Over the Past 10 Years
Min: 1.57   Med: 2.45   Max: 5.2
Current: 5.2

During the past 13 years, Aries Agro's highest ROA % was 5.20%. The lowest was 1.57%. And the median was 2.45%.

BOM:532935's ROA % is ranked better than
71.04% of 259 companies
in the Agriculture industry
Industry Median: 2.65 vs BOM:532935: 5.20

Aries Agro ROA % Historical Data

The historical data trend for Aries Agro'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.

Aries Agro ROA % Chart

Aries Agro 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 1.99 3.64 2.63 3.33 3.75

Aries Agro 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 9.16 5.72 -4.34 5.62 13.20

Competitive Comparison of Aries Agro's ROA %

For the Agricultural Inputs subindustry, Aries Agro'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.


Aries Agro's ROA % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Aries Agro's ROA % distribution charts can be found below:

* The bar in red indicates where Aries Agro's ROA % falls into.



Aries Agro ROA % Calculation

Aries Agro'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 )
=194.311/( (5198.443+5174.984)/ 2 )
=194.311/5186.7135
=3.75 %

Aries Agro'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 )
=754.712/( (0+5718.282)/ 1 )
=754.712/5718.282
=13.20 %

* 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.


Aries Agro  (BOM:532935) 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
=754.712/5718.282
=(Net Income / Revenue)*(Revenue / Total Assets)
=(754.712 / 7679.936)*(7679.936 / 5718.282)
=Net Margin %*Asset Turnover
=9.83 %*1.343
=13.20 %

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.


Aries Agro ROA % Related Terms

Thank you for viewing the detailed overview of Aries Agro's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Aries Agro Business Description

Traded in Other Exchanges
Address
Aries House, Plot No. 24, Deonar, Govandi (East), Mumbai, MH, IND, 400043
Aries Agro Ltd is involved in the business of manufacturing micronutrients and other customized nutritional products for plants and animals. The company also deals in Veterinary products on a small scale. It has also started dealing and manufacturing soluble fertilizers and sulphur based fertilizers. Some of the products produced by the company are; Aries Garden Care kit, Macrofert water-soluble complex fertilizers, and Fishmin micronutrient fertilizers for pond culture among others.

Aries Agro Headlines

No Headlines