ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Electric Power Development Co's annualizedNet Income for the quarter that ended in Dec. 2023 was $795 Mil.
Electric Power Development Co's average Total Assets over the quarter that ended in Dec. 2023 was $23,689 Mil. Therefore, Electric Power Development Co's annualized ROA % for the quarter that ended in Dec. 2023 was 3.36%.
The historical rank and industry rank for Electric Power Development Co's ROA % or its related term are showing as below:
EDRWY'
s ROA % Range Over the Past 10 Years
Min: 0.79 Med: 1.71 Max: 3.54
Current: 2.27
During the past 13 years, Electric Power Development Co's highest ROA % was 3.54%. The lowest was 0.79%. And the median was 1.71%.
* 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.
Competitive Comparison of Electric Power Development Co's ROA %
For the Utilities - Renewable subindustry, Electric Power Development Co'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.
Electric Power Development Co's ROA % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Electric Power Development Co's ROA % distribution charts can be found below:
* The bar in red indicates where Electric Power Development Co'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 (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Electric Power Development Co (OTCPK:EDRWY) 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 (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 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.
Electric Power Development Co ROA % Related Terms
Thank you for viewing the detailed overview of Electric Power Development Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Electric Power Development Co (Electric Power Development Co) Business Description
Electric Power Development Co., Ltd. which operates under the brand J-POWER, is a Japanese electric utility company involved in the generation, transmission, distribution, and retail sale of energy. The company operates a portfolio of hydroelectric, wind, nuclear, geothermal, and thermal power plants located primarily throughout Japan, but also elsewhere in Southeast Asia and North America. While most of Electric Power Development's power generating facilities are hydroelectric, the company's total electric power production can be divided fairly evenly between its thermal and hydroelectric sites. Electric Power Development generates almost all of its revenue from its electric utility operations, which primarily comprise the sale of energy from its thermal power plants.
Electric Power Development Co (Electric Power Development Co) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
EDRWY has been successfully added to your 