CRVH (Chilco River Holdings) ROA % : -15.92% (As of Dec. 2006)

View and export this data going back to 2005. Start your Free Trial

What is Chilco River Holdings ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Chilco River Holdings's annualized Net Income for the quarter that ended in Dec. 2006 was $-3.50 Mil. Chilco River Holdings's average Total Assets over the quarter that ended in Dec. 2006 was $21.98 Mil. Therefore, Chilco River Holdings's annualized ROA % for the quarter that ended in Dec. 2006 was -15.92%.

The historical rank and industry rank for Chilco River Holdings's ROA % or its related term are showing as below:

CRVH's ROA % is not ranked ^*
in the Diversified Financial Services industry.
Industry Median: -1.4
* Ranked among companies with meaningful ROA % only.

Chilco River Holdings ROA % Historical Data

The historical data trend for Chilco River Holdings'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.

Chilco River Holdings ROA % Chart

Chilco River Holdings Annual Data

Trend

Dec04

Dec05

Dec06

ROA %

153,166.67

6.43

-15.92

Chilco River Holdings Semi-Annual Data
	Dec04	Dec05	Dec06
ROA %	153,166.67	6.43	-15.92

Competitive Comparison of Chilco River Holdings's ROA %

For the Shell Companies subindustry, Chilco River Holdings'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.

Chilco River Holdings's ROA % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Chilco River Holdings's ROA % distribution charts can be found below:

* The bar in red indicates where Chilco River Holdings's ROA % falls into.

Chilco River Holdings ROA % Calculation

Chilco River Holdings's annualized ROA % for the fiscal year that ended in Dec. 2006 is calculated as:

ROA %	=	Net Income (A: Dec. 2006 )	/	( (Total Assets (A: Dec. 2005 )	+	Total Assets (A: Dec. 2006 ))	/ count )
	=	-3.5	/	( (18.069	+	25.9)	/ 2 )
	=	-3.5	/	21.9845
	=	-15.92 %

Chilco River Holdings's annualized ROA % for the quarter that ended in Dec. 2006 is calculated as:

ROA %	=	Net Income (Q: Dec. 2006 )	/	( (Total Assets (Q: Dec. 2005 )	+	Total Assets (Q: Dec. 2006 ))	/ count )
	=	-3.5	/	( (18.069	+	25.9)	/ 2 )
	=	-3.5	/	21.9845
	=	-15.92 %

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 one times the annual (Dec. 2006) net income data. ROA % is displayed in the 30-year financial page.

Chilco River Holdings (OTCPK:CRVH) 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:

	ROA %		(Q: Dec. 2006 )
=	Net Income	/	Total Assets
=	-3.5	/	21.9845
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-3.5 / 1.598)	*	(1.598 / 21.9845)
=	Net Margin %	*	Asset Turnover
=	-219.02 %	*	0.0727
=	-15.92 %

Note: The Net Income data used here is one times the annual (Dec. 2006) net income data. The Revenue data used here is one times the annual (Dec. 2006) revenue data.

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.

Chilco River Holdings ROA % Related Terms

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