ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Reckitt Benckiser Group's annualizedNet Income for the quarter that ended in Jun. 2024 was £2,284 Mil.
Reckitt Benckiser Group's average Total Assets over the quarter that ended in Jun. 2024 was £26,772 Mil. Therefore, Reckitt Benckiser Group's annualized ROA % for the quarter that ended in Jun. 2024 was 8.53%.
The historical rank and industry rank for Reckitt Benckiser Group's ROA % or its related term are showing as below:
CHIX:RKTl'
s ROA % Range Over the Past 10 Years
Min: -10.51 Med: 7.13 Max: 22.3
Current: 5.71
During the past 13 years, Reckitt Benckiser Group's highest ROA % was 22.30%. The lowest was -10.51%. And the median was 7.13%.
CHIX:RKTl's ROA % is ranked better than 66.61% of 1920
companies
in the Consumer Packaged Goods industry
Industry Median: 3.315
vs CHIX:RKTl: 5.71
* 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.
Competitive Comparison of Reckitt Benckiser Group's ROA %
For the Household & Personal Products subindustry, Reckitt Benckiser 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.
Reckitt Benckiser Group's ROA % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Reckitt Benckiser Group's ROA % distribution charts can be found below:
* The bar in red indicates where Reckitt Benckiser Group's ROA % falls into.
Reckitt Benckiser Group ROA % Calculation
Reckitt Benckiser Group's annualized ROA % for the fiscal year that ended in Dec. 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 (Jun. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Reckitt Benckiser Group (CHIX:RKTl) 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 (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.
Reckitt Benckiser Group ROA % Related Terms
Thank you for viewing the detailed overview of Reckitt Benckiser Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Reckitt Benckiser was formed in 1999 through the merger of the British firm Reckitt & Colman and Dutch-based Benckiser. Recently rebranded under the corporate name Reckitt, it sells a portfolio that includes a variety of household and consumer health brands, such as Lysol, Finish, Durex, and Mucinex, many of which hold the number-one or -two positions in their categories globally. Reckitt has repositioned its portfolio and has entered the infant formula market through the acquisition of Mead Johnson in 2017, expanded its consumer health presence by acquiring Schiff Nutrition, K-Y, and Biofreeze, and has exited the food industry. The firm operates in 60 countries and sells products in more than 200, generating around 35% of sales from emerging markets.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CHIX:RKTL has been successfully added to your 