ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Banco Daycoval S.A.'s annualizedNet Income for the quarter that ended in Jun. 2016 was R$276.91 Mil.
Banco Daycoval S.A.'s average Total Assets over the quarter that ended in Jun. 2016 was R$20,416.24 Mil. Therefore, Banco Daycoval S.A.'s annualized ROA % for the quarter that ended in Jun. 2016 was 1.36%.
The historical rank and industry rank for Banco Daycoval S.A.'s ROA % or its related term are showing as below:
BSP:DAYC3'
s ROA % Range Over the Past 10 Years
Min: 1.64 Med: 2.95 Max: 4.27
Current: 1.89
During the past 10 years, Banco Daycoval S.A.'s highest ROA % was 4.27%. The lowest was 1.64%. And the median was 2.95%.
BSP:DAYC3's ROA % is not ranked
in the Banks industry.
Industry Median: 0.98
vs BSP:DAYC3: 1.89
Banco Daycoval S.A. (BSP:DAYC3) 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 (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 2016) 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.
Banco Daycoval S.A. ROA % Related Terms
Banco Daycoval S.A. ROA % Historical Data
* Premium members only.
The historical data trend for Banco Daycoval S.A.'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 Banks - Regional subindustry, Banco Daycoval S.A.'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.
Banco Daycoval S.A. ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Banco Daycoval S.A.'s ROA % distribution charts can be found below:
* The bar in red indicates where Banco Daycoval S.A.'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 (Jun. 2016) net income data.
ROA % is displayed in the 30-year financial page.
Banco Daycoval S.A. (BSP:DAYC3) has a ROA % of 1.36% as of Jun. 2016. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Banco Daycoval S.A. and its competitors. This is 54% below median its historical median of 2.95. Over the past decade, Banco Daycoval S.A.'s ROA % has ranged from 1.64 to 4.27.
Is Banco Daycoval S.A.'s ROA % too high?
Banco Daycoval S.A.'s current ROA % of 1.36% is 54% below median its 10-year median of 2.95. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 4.27. The Banks industry median ROA % is 0.98. Banco Daycoval S.A.'s value of 1.36% is 38.8% above this industry median.
How does Banco Daycoval S.A.'s ROA % compare to FISI and MBIN?
Banco Daycoval S.A.'s ROA % of 1.36% can be compared against companies in the Banks industry. The industry median ROA % is 0.98. Banco Daycoval S.A.'s value of 1.36% is 38.8% above this benchmark. Historically, Banco Daycoval S.A.'s own ROA % has ranged from 1.64 to 4.27 over the past decade. While the company's 10-year median is 2.95 vs. the industry median of 0.98, Banco Daycoval S.A. 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 Banks company?
The median ROA % among Banks companies is 0.98, based on 1,529 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. Banco Daycoval S.A.'s current ROA % of 1.36% is 38.8% 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 Banco Daycoval S.A. and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco Daycoval S.A.'s current ROA % is 1.36%, which is 54% below median its own 10-year median of 2.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco Daycoval S.A. stock overvalued right now?
Banco Daycoval S.A. (BSP:DAYC3) has a current ROA % of 1.36%. The current ROA % is 1.36%, which is 54% below median its 10-year median of 2.95 and 38.8% above the Banks industry median of 0.98. 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 Banco Daycoval S.A. (BSP:DAYC3), the current ROA % is 1.36% as of Jun. 2016. 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.
Banco Daycoval S.A. was founded in 1968. It is a is a commercial bank. The Company along with its subsidiaries is engaged in commercial, foreign exchange, investment and lending portfolios. It also provide services including management of assets, life insurance and pension plans. The Company operates in four business segments: financial segment; asset management segment; insurance and pension fund segment; andother segments. Financial segment - handles individual customer deposits and provides loan, overdraft, credit card, and wire transfer services, and performs treasury, finance and other core functions; Asset management segment - services to institutional investors and intermediaries by providing financial asset management through investment funds; and Insurance and pension fund segment - offers life insurance and open-end supplementary pension funds, by operating lump-sum and annuity plans, consisting of the plans' participants' contributions.
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