ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Diamond S Shipping Group's annualizedNet Income for the quarter that ended in Mar. 2013 was $11.04 Mil.
Diamond S Shipping Group's average Total Assets over the quarter that ended in Mar. 2013 was $1,196.84 Mil. Therefore, Diamond S Shipping Group's annualized ROA % for the quarter that ended in Mar. 2013 was 0.92%.
The historical rank and industry rank for Diamond S Shipping Group's ROA % or its related term are showing as below:
DSG'
s ROA % Range Over the Past 10 Years
Min: -0.91 Med: 0.02 Max: 0.94
Current: 0.94
During the past 2 years, Diamond S Shipping Group's highest ROA % was 0.94%. The lowest was -0.91%. And the median was 0.02%.
DSG's ROA % is not ranked
in the Transportation industry.
Industry Median: 3.46
vs DSG: 0.94
Diamond S Shipping Group (NYSE:DSG) 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 one times the annual (Mar. 2013) net income data. The Revenue data used here is one times the annual (Mar. 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.
* 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.
Diamond S Shipping Group ROA % Chart
Diamond S Shipping Group Annual Data
Trend
Mar12
Mar13
ROA %
-0.91
0.92
Diamond S Shipping Group Semi-Annual Data
Mar12
Mar13
ROA %
-0.91
0.92
DSG vs PRGNF, TEUFF, BSTN: ROA % Comparison
For the Marine Shipping subindustry, Diamond S Shipping 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.
Diamond S Shipping Group ROA % vs Transportation Industry
For the Transportation industry and Industrials sector, Diamond S Shipping Group's ROA % distribution charts can be found below:
* The bar in red indicates where Diamond S Shipping Group'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 one times the annual (Mar. 2013) net income data.
ROA % is displayed in the 30-year financial page.
Diamond S Shipping Group (DSG) has a ROA % of 0.92% as of Mar. 2013. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Diamond S Shipping Group and its competitors. This is 4500% above median its historical median of 0.02.
Is Diamond S Shipping Group's ROA % too high?
Diamond S Shipping Group's current ROA % of 0.92% is 4500% above median its 10-year median of 0.02. The Transportation industry median ROA % is 3.46. Diamond S Shipping Group's value of 0.92% is 73.4% below this industry median.
How does Diamond S Shipping Group's ROA % compare to PRGNF and TEUFF?
Diamond S Shipping Group's ROA % of 0.92% can be compared against companies in the Transportation industry. The industry median ROA % is 3.46. Diamond S Shipping Group's value of 0.92% is 73.4% below this benchmark. While the company's 10-year median is 0.02 vs. the industry median of 3.46, Diamond S Shipping Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Transportation company?
The median ROA % among Transportation companies is 3.46, based on 1,015 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. Diamond S Shipping Group's current ROA % of 0.92% is 73.4% 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 Diamond S Shipping Group and its competitors. For the Transportation industry, the median ROA % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamond S Shipping Group's current ROA % is 0.92%, which is 4500% above median its own 10-year median of 0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamond S Shipping Group stock overvalued right now?
Diamond S Shipping Group (DSG) has a current ROA % of 0.92%. The current ROA % is 0.92%, which is 4500% above median its 10-year median of 0.02 and 73.4% below the Transportation industry median of 3.46. 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 Diamond S Shipping Group (DSG), the current ROA % is 0.92% as of Mar. 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.
Diamond S Shipping Group Inc, is incorporated in Marshall Islands on July 31, 2013. The Company provides seaborne transportation of refined petroleum and other products in the international shipping markets. The Company is the owners and operators of medium range, or MR, product tankers. The Company's fleet currently consists of 33 MR product tankers built at Korean and Japanese shipyards. The Company competes on basis of price, vessel location, size, age and condition of the vessel. The Company is subject to various international conventions, national, state and local laws and regulations in the countries in which its vessels may operate or are registered.
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