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Edenred SE (CHIX:EDENP) ROA % : 3.49% (As of Jun. 2024)


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What is Edenred SE ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Edenred SE's annualized Net Income for the quarter that ended in Jun. 2024 was €470 Mil. Edenred SE's average Total Assets over the quarter that ended in Jun. 2024 was €13,453 Mil. Therefore, Edenred SE's annualized ROA % for the quarter that ended in Jun. 2024 was 3.49%.

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

CHIX:EDENp' s ROA % Range Over the Past 10 Years
Min: 2.18   Med: 3.73   Max: 4.28
Current: 2.28

During the past 13 years, Edenred SE's highest ROA % was 4.28%. The lowest was 2.18%. And the median was 3.73%.

CHIX:EDENp's ROA % is ranked better than
57.64% of 543 companies
in the Credit Services industry
Industry Median: 1.67 vs CHIX:EDENp: 2.28

Edenred SE ROA % Historical Data

The historical data trend for Edenred SE'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.

Edenred SE ROA % Chart

Edenred SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.86 2.60 3.17 3.59 2.18

Edenred SE Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 3.27 3.99 3.40 1.01 3.49

Competitive Comparison of Edenred SE's ROA %

For the Credit Services subindustry, Edenred SE'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.


Edenred SE's ROA % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Edenred SE's ROA % distribution charts can be found below:

* The bar in red indicates where Edenred SE's ROA % falls into.



Edenred SE ROA % Calculation

Edenred SE's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=267/( (11174+13295)/ 2 )
=267/12234.5
=2.18 %

Edenred SE's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Jun. 2024 ))/ count )
=470/( (13295+13611)/ 2 )
=470/13453
=3.49 %

* 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 (Jun. 2024) net income data. ROA % is displayed in the 30-year financial page.


Edenred SE  (CHIX:EDENp) 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: Jun. 2024 )
=Net Income/Total Assets
=470/13453
=(Net Income / Revenue)*(Revenue / Total Assets)
=(470 / 2790)*(2790 / 13453)
=Net Margin %*Asset Turnover
=16.85 %*0.2074
=3.49 %

Note: The Net Income data used here is two times the semi-annual (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.


Edenred SE ROA % Related Terms

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


Edenred SE Business Description

Address
14-16 Boulevard Garibaldi, Issy-les-Moulineaux, Paris, FRA, 92130
Edenred is a France-listed prepaid corporate services provider operating in 45 countries. The company was listed in 2010 following a spinoff from hotel group Accor. Edenred's main business, Ticket Restaurant, offers prepaid meal vouchers that employers provide to their employees as an additional benefit. The company is also involved in other areas such as prepaid fuel cards and payment and expense-management systems. Edenred is also moving "beyond" its historical services, adding wellbeing, gift, EV, toll and business to business accounts payable automation services.

Edenred SE Headlines

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