ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Avis Budget Group's annualizedNet Income for the quarter that ended in Mar. 2026 was $-1,132 Mil.
Avis Budget Group's average Total Assets over the quarter that ended in Mar. 2026 was $30,930 Mil. Therefore, Avis Budget Group's annualized ROA % for the quarter that ended in Mar. 2026 was -3.66%.
The historical rank and industry rank for Avis Budget Group's ROA % or its related term are showing as below:
CAR'
s ROA % Range Over the Past 10 Years
Min: -5.91 Med: 1.18 Max: 11.39
Current: -2.14
During the past 13 years, Avis Budget Group's highest ROA % was 11.39%. The lowest was -5.91%. And the median was 1.18%.
CAR's ROA % is ranked worse than 77.92% of 1096
companies
in the Business Services industry
Industry Median: 3.455
vs CAR: -2.14
Avis Budget Group (NAS:CAR) 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.
Avis Budget Group ROA % Related Terms
Avis Budget Group ROA % Historical Data
* Premium members only.
The historical data trend for Avis Budget Group'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 Rental & Leasing Services subindustry, Avis Budget Group'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.
Avis Budget Group ROA % vs Business Services Industry
For the Business Services industry and Industrials sector, Avis Budget Group's ROA % distribution charts can be found below:
* The bar in red indicates where Avis Budget Group'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.
Avis Budget Group (CAR) has a ROA % of -3.66% 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 Avis Budget Group and its competitors. According to the industry distribution chart, Avis Budget Group ranks #854 out of 1096 companies in the Business Services industry, placing it in the top 77.9%.
Is Avis Budget Group's ROA % too high?
Avis Budget Group's current ROA % is -3.66%. Based on the distribution chart, Avis Budget Group ranks #854 out of 1096 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Avis Budget Group has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avis Budget Group's ROA % compare to GATX and EQPT?
According to the Business Services industry distribution chart, Avis Budget Group ranks #854 out of 1096 companies for ROA %. This places Avis Budget Group in the lower half of its industry. The industry median ROA % is 3.46. 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 3.46, based on 1,096 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. 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 Avis Budget Group and its competitors. For the Business Services industry, the median ROA % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avis Budget Group's current ROA % is -3.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avis Budget Group stock overvalued right now?
Based on GuruFocus' analysis, Avis Budget Group (CAR) is currently considered Significantly Overvalued. The stock's GF Value™ is $131.02, compared to a current price of $176.07 — trading 34.4% above its estimated fair value. The current ROA % is -3.66%. Avis Budget Group's overall GF Score™ is 71/100 with 9 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 Avis Budget Group (CAR), the current ROA % is -3.66% 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.
Is Avis Budget Group (CAR) Overvalued in 2026?
Based on GuruFocus' analysis, Avis Budget Group stock appears to be overvalued.
The current stock price of $176.07 is trading 34.4% above its estimated GF Value™ of $131.02.
GuruFocus considers Avis Budget Group to be Significantly Overvalued.
Key valuation signals for CAR:
ROA %: -3.66%
GF Value™: $131.02 vs. price of $176.07 (34.4% above fair value)
No single metric tells the full story. See the CAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avis Budget Group Inc is a provider of mobility solutions through its three brands Avis, Budget and Zipcar, as well as several other brands, well recognized in their respective markets. Its brands offer a range of options, from car and truck rental to car sharing. The company operates in two reportable business segments: Americas - (i) vehicle rental operations in North America, South America, Central America and the Caribbean, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which do not operate directly. International - consisting of (i) vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which do not operate directly.
71GF Score
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