ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. A2B Australia's annualizedNet Income for the quarter that ended in Dec. 2023 was $68.2 Mil.
A2B Australia's average Total Assets over the quarter that ended in Dec. 2023 was $134.9 Mil. Therefore, A2B Australia's annualized ROA % for the quarter that ended in Dec. 2023 was 50.58%.
The historical rank and industry rank for A2B Australia's ROA % or its related term are showing as below:
CGAAY'
s ROA % Range Over the Past 10 Years
Min: -24.24 Med: 1.83 Max: 38.82
Current: 38.82
During the past 13 years, A2B Australia's highest ROA % was 38.82%. The lowest was -24.24%. And the median was 1.83%.
CGAAY's ROA % is ranked better than 98.97% of 2820
companies
in the Software industry
Industry Median: 1.015
vs CGAAY: 38.82
A2B Australia ROA % Historical Data
The historical data trend for A2B Australia'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 Software - Infrastructure subindustry, A2B Australia'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.
A2B Australia's ROA % Distribution in the Software Industry
For the Software industry and Technology sector, A2B Australia's ROA % distribution charts can be found below:
* The bar in red indicates where A2B Australia's ROA % falls into.
A2B Australia ROA % Calculation
A2B Australia's annualized ROA % for the fiscal year that ended in Jun. 2023 is calculated as:
* 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 two times the semi-annual (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
A2B Australia (OTCPK:CGAAY) 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 two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.
A2B Australia ROA % Related Terms
Thank you for viewing the detailed overview of A2B Australia's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
A2B Australia (A2B Australia) Business Description
A2B Australia Ltd provides payment and other services to taxi operators in Australia and also operates taxis itself. Its brands include 13cabs, Cabcharge, Silver Service, MTI, Spotto, EFT Solutions, and Giraffe payments. The company derives revenue from the Taxi service fee; Network subscription fees and others.
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