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Divgi TorqTransfer Systems (BOM:543812) ROA % : 5.74% (As of Dec. 2023)


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What is Divgi TorqTransfer Systems ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Divgi TorqTransfer Systems's annualized Net Income for the quarter that ended in Dec. 2023 was ₹375 Mil. Divgi TorqTransfer Systems's average Total Assets over the quarter that ended in Dec. 2023 was ₹6,534 Mil. Therefore, Divgi TorqTransfer Systems's annualized ROA % for the quarter that ended in Dec. 2023 was 5.74%.

The historical rank and industry rank for Divgi TorqTransfer Systems's ROA % or its related term are showing as below:

BOM:543812' s ROA % Range Over the Past 10 Years
Min: 7.65   Med: 10.59   Max: 12.01
Current: 7.65

During the past 4 years, Divgi TorqTransfer Systems's highest ROA % was 12.01%. The lowest was 7.65%. And the median was 10.59%.

BOM:543812's ROA % is ranked better than
80.62% of 1300 companies
in the Vehicles & Parts industry
Industry Median: 3.325 vs BOM:543812: 7.65

Divgi TorqTransfer Systems ROA % Historical Data

The historical data trend for Divgi TorqTransfer Systems'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.

Divgi TorqTransfer Systems ROA % Chart

Divgi TorqTransfer Systems Annual Data
Trend Mar20 Mar21 Mar22 Mar23
ROA %
9.23 11.41 12.01 9.77

Divgi TorqTransfer Systems Quarterly Data
Mar20 Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.20 8.38 6.50 6.56 5.74

Competitive Comparison of Divgi TorqTransfer Systems's ROA %

For the Auto Parts subindustry, Divgi TorqTransfer Systems'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.


Divgi TorqTransfer Systems's ROA % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Divgi TorqTransfer Systems's ROA % distribution charts can be found below:

* The bar in red indicates where Divgi TorqTransfer Systems's ROA % falls into.



Divgi TorqTransfer Systems ROA % Calculation

Divgi TorqTransfer Systems's annualized ROA % for the fiscal year that ended in Mar. 2023 is calculated as:

ROA %=Net Income (A: Mar. 2023 )/( (Total Assets (A: Mar. 2022 )+Total Assets (A: Mar. 2023 ))/ count )
=511.62/( (4053.7+6419.98)/ 2 )
=511.62/5236.84
=9.77 %

Divgi TorqTransfer Systems's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=374.88/( (6534.48+0)/ 1 )
=374.88/6534.48
=5.74 %

* 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. 2023) net income data. ROA % is displayed in the 30-year financial page.


Divgi TorqTransfer Systems  (BOM:543812) 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. 2023 )
=Net Income/Total Assets
=374.88/6534.48
=(Net Income / Revenue)*(Revenue / Total Assets)
=(374.88 / 2521.96)*(2521.96 / 6534.48)
=Net Margin %*Asset Turnover
=14.86 %*0.3859
=5.74 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


Divgi TorqTransfer Systems ROA % Related Terms

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Divgi TorqTransfer Systems (BOM:543812) Business Description

Traded in Other Exchanges
Address
MIDC, Bhosari, Plot No. 75, General Block, Pune, MH, IND, 411026
Divgi TorqTransfer Systems Ltd is engaged in the business as an automotive component entity. It develops and provides system level transfer case, torque coupler and dual clutch automatic transmissions solutions. The Company operates only in one business segment viz. Auto Components and Parts. The secondary segment is based on geographical demarcation, i.e. domestic and exports.

Divgi TorqTransfer Systems (BOM:543812) Headlines

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