ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China United Insurance Service's annualizedNet Income for the quarter that ended in Mar. 2023 was $7.4 Mil.
China United Insurance Service's average Total Assets over the quarter that ended in Mar. 2023 was $139.1 Mil. Therefore, China United Insurance Service's annualized ROA % for the quarter that ended in Mar. 2023 was 5.35%.
The historical rank and industry rank for China United Insurance Service's ROA % or its related term are showing as below:
CUII's ROA % is not ranked *
in the Insurance industry.
Industry Median: 2.7 * Ranked among companies with meaningful ROA % only.
China United Insurance Service (OTCPK:CUII) 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 four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) 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 United Insurance Service ROA % Related Terms
China United Insurance Service ROA % Historical 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.
For the Insurance Brokers subindustry, China United Insurance Service'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 United Insurance Service ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, China United Insurance Service's ROA % distribution charts can be found below:
* The bar in red indicates where China United Insurance Service'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 (Mar. 2023) net income data.
ROA % is displayed in the 30-year financial page.
China United Insurance Service (CUII) has a ROA % of 5.35% as of Mar. 2023. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on China United Insurance Service and its competitors.
Is China United Insurance Service's ROA % too high?
China United Insurance Service's current ROA % is 5.35%. The Insurance industry median ROA % is 2.70. China United Insurance Service's value of 5.35% is 98.1% above this industry median. Overall, China United Insurance Service has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does China United Insurance Service's ROA % compare to RELI and TIRX?
China United Insurance Service's ROA % of 5.35% can be compared against companies in the Insurance industry. The industry median ROA % is 2.70. China United Insurance Service's value of 5.35% is 98.1% above 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 Insurance company?
The median ROA % among Insurance companies is 2.70, based on 506 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 United Insurance Service's current ROA % of 5.35% is 98.1% above 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 United Insurance Service and its competitors. For the Insurance industry, the median ROA % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China United Insurance Service's current ROA % is 5.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China United Insurance Service stock overvalued right now?
China United Insurance Service (CUII) has a current ROA % of 5.35%. The current ROA % is 5.35% and 98.1% above the Insurance industry median of 2.70. China United Insurance Service's overall GF Score™ is 12/100. 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 United Insurance Service (CUII), the current ROA % is 5.35% as of Mar. 2023. 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 United Insurance Service Business Description
China United Insurance Service Inc through its subsidiaries provides insurance brokerage and agency services across the People's Republic of China. The company offers client-specific life insurance products and property and casualty insurance products. It generates majority of its revenues from Taiwan followed by the People's Republic of China. Property and Casualty Insurance Products: Law Broker's main property and casualty insurance products are automobile insurance, casualty insurance, and liability insurance. The property and casualty insurance products Law Broker distributes can be further classified into the categories: automobile insurance, casualty insurance, and liability insurance.
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