GURUFOCUS.COM » STOCK LIST » Technology » Software » Celerity Solutions Inc (OTCPK:CLTY) » Definitions » ROA %

Celerity Solutions (Celerity Solutions) ROA % : -14.65% (As of Dec. 2099)


View and export this data going back to 1992. Start your Free Trial

What is Celerity Solutions ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Celerity Solutions's annualized Net Income for the quarter that ended in Dec. 2099 was $-0.58 Mil. Celerity Solutions's average Total Assets over the quarter that ended in Dec. 2099 was $3.96 Mil. Therefore, Celerity Solutions's annualized ROA % for the quarter that ended in Dec. 2099 was -14.65%.

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

CLTY's ROA % is not ranked *
in the Software industry.
Industry Median: 1.09
* Ranked among companies with meaningful ROA % only.

Celerity Solutions ROA % Historical Data

The historical data trend for Celerity Solutions'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.

Celerity Solutions ROA % Chart

Celerity Solutions Annual Data
Trend Mar91 Mar92 Mar93 Mar94 Mar95 Mar96 Mar97 Mar98 Mar99
ROA %
Get a 7-Day Free Trial Premium Member Only -46.99 42.25 -67.69 -27.81 -40.15

Celerity Solutions Quarterly Data
Mar95 Jun95 Sep95 Dec95 Mar96 Jun96 Sep96 Dec96 Mar97 Jun97 Sep97 Dec97 Mar98 Jun98 Sep98 Dec98 Mar99 Jun99 Sep99 Dec99
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 -10.32 -142.15 2.34 2.32 -14.65

Competitive Comparison of Celerity Solutions's ROA %

For the Software - Application subindustry, Celerity Solutions'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.


Celerity Solutions's ROA % Distribution in the Software Industry

For the Software industry and Technology sector, Celerity Solutions's ROA % distribution charts can be found below:

* The bar in red indicates where Celerity Solutions's ROA % falls into.



Celerity Solutions ROA % Calculation

Celerity Solutions's annualized ROA % for the fiscal year that ended in Mar. 2099 is calculated as:

ROA %=Net Income (A: Mar. 2099 )/( (Total Assets (A: Mar. 2098 )+Total Assets (A: Mar. 2099 ))/ count )
=-2.891/( (8.446+5.956)/ 2 )
=-2.891/7.201
=-40.15 %

Celerity Solutions's annualized ROA % for the quarter that ended in Dec. 2099 is calculated as:

ROA %=Net Income (Q: Dec. 2099 )/( (Total Assets (Q: Sep. 2099 )+Total Assets (Q: Dec. 2099 ))/ count )
=-0.58/( (4.302+3.617)/ 2 )
=-0.58/3.9595
=-14.65 %

* 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 (Dec. 2099) net income data. ROA % is displayed in the 30-year financial page.


Celerity Solutions  (OTCPK:CLTY) 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: Dec. 2099 )
=Net Income/Total Assets
=-0.58/3.9595
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-0.58 / 5.568)*(5.568 / 3.9595)
=Net Margin %*Asset Turnover
=-10.42 %*1.4062
=-14.65 %

Note: The Net Income data used here is four times the quarterly (Dec. 2099) net income data. The Revenue data used here is four times the quarterly (Dec. 2099) 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.


Celerity Solutions ROA % Related Terms

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


Celerity Solutions (Celerity Solutions) Business Description

Traded in Other Exchanges
N/A
Address
270 Bridge Street, Suite 301, Dedman, MA, USA, 02026
Celerity Solutions Inc provides internet enables business software applications. It offers Business & Technology Strategy, Full lifecycle ERP Application Implementation & Strategic Enhancements, Business Intelligence & Custom Application Development.

Celerity Solutions (Celerity Solutions) Headlines

No Headlines