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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Natural Gas's annualizedNet Income for the quarter that ended in Sep. 2013 was $2.9 Mil.
China Natural Gas's average Total Assets over the quarter that ended in Sep. 2013 was $303.5 Mil. Therefore, China Natural Gas's annualized ROA % for the quarter that ended in Sep. 2013 was 0.94%.
The historical rank and industry rank for China Natural Gas's ROA % or its related term are showing as below:
CHNGQ's ROA % is not ranked *
in the Utilities - Regulated industry.
Industry Median: 3.05 * Ranked among companies with meaningful ROA % only.
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 (Sep. 2013) net income data. The Revenue data used here is four times the quarterly (Sep. 2013) 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.
China Natural Gas ROA % Related Terms
China Natural Gas ROA % Historical Data
* Premium members only.
The historical data trend for China Natural Gas'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 Utilities - Regulated Gas subindustry, China Natural Gas'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.
China Natural Gas ROA % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Natural Gas's ROA % distribution charts can be found below:
* The bar in red indicates where China Natural Gas'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 (Sep. 2013) net income data.
ROA % is displayed in the 30-year financial page.
China Natural Gas (CHNGQ) has a ROA % of 0.94% as of Sep. 2013. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on China Natural Gas and its competitors.
Is China Natural Gas' ROA % too high?
China Natural Gas' current ROA % is 0.94%. The Utilities - Regulated industry median ROA % is 3.05. China Natural Gas' value of 0.94% is 69.2% below this industry median.
How does China Natural Gas' ROA % compare to SXEEQ and CNIG?
China Natural Gas' ROA % of 0.94% can be compared against companies in the Utilities - Regulated industry. The industry median ROA % is 3.05. China Natural Gas' value of 0.94% is 69.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Utilities - Regulated company?
The median ROA % among Utilities - Regulated companies is 3.05, based on 509 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. China Natural Gas's current ROA % of 0.94% is 69.2% below 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 China Natural Gas and its competitors. For the Utilities - Regulated industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Natural Gas's current ROA % is 0.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Natural Gas stock overvalued right now?
China Natural Gas (CHNGQ) has a current ROA % of 0.94%. The current ROA % is 0.94% and 69.2% below the Utilities - Regulated industry median of 3.05. 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 China Natural Gas (CHNGQ), the current ROA % is 0.94% as of Sep. 2013. 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.
China Natural Gas Inc through its subsidiaries engages in sales & distribution of natural gas and gasoline to commercial, industrial & residential customers, construction of pipeline networks, installation of natural gas fittings & parts for end-users.
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