ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. El Capitan Precious Metals's annualizedNet Income for the quarter that ended in Sep. 2017 was $-10.26 Mil.
El Capitan Precious Metals's average Total Assets over the quarter that ended in Sep. 2017 was $2.33 Mil. Therefore, El Capitan Precious Metals's annualized ROA % for the quarter that ended in Sep. 2017 was -439.42%.
The historical rank and industry rank for El Capitan Precious Metals's ROA % or its related term are showing as below:
ECPN's ROA % is not ranked *
in the Metals & Mining industry.
Industry Median: -16.81 * Ranked among companies with meaningful ROA % only.
El Capitan Precious Metals (OTCPK:ECPN) 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 (Sep. 2017) net income data. The Revenue data used here is four times the quarterly (Sep. 2017) 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.
For the Other Precious Metals & Mining subindustry, El Capitan Precious Metals'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.
El Capitan Precious Metals ROA % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, El Capitan Precious Metals's ROA % distribution charts can be found below:
* The bar in red indicates where El Capitan Precious Metals'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. 2017) net income data.
ROA % is displayed in the 30-year financial page.
El Capitan Precious Metals (ECPN) has a ROA % of -439.42% as of Sep. 2017. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on El Capitan Precious Metals and its competitors.
Is El Capitan Precious Metals' ROA % too high?
El Capitan Precious Metals' current ROA % is -439.42%.
How does El Capitan Precious Metals' ROA % compare to MAGE?
El Capitan Precious Metals' ROA % of -439.42% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROA % depends on the Metals & Mining industry context. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 El Capitan Precious Metals and its competitors. El Capitan Precious Metals's current ROA % is -439.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is El Capitan Precious Metals stock overvalued right now?
El Capitan Precious Metals (ECPN) has a current ROA % of -439.42%. The current ROA % is -439.42%. 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 El Capitan Precious Metals (ECPN), the current ROA % is -439.42% as of Sep. 2017. 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.
El Capitan Precious Metals Inc is an exploration stage mining company. It explores for precious metals and other minerals. The company owns an interest in El Capitan Ltd which holds an interest in the El Capitan property located in New Mexico. Its objective is to market and sell the El Capitan Property to a mining company or enter a joint venture arrangement with a mining company to conduct mining operations. The El Capitan property consists of more than 350 Bureau of Land Management lode claims and four patented claims.
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