McGraw HillFRA:1LI -6.06%31 ROA % is -3.64% as of Mar. 2026. GuruFocus rates FRA:1LI with a GF Score™ of 31/100. The stock has 5 warning signs investors should review. Among 263 Education companies, McGraw Hill ranks worse than 66.16% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. McGraw Hill's annualizedNet Income for the quarter that ended in Mar. 2026 was €-174 Mil.
McGraw Hill's average Total Assets over the quarter that ended in Mar. 2026 was €4,782 Mil. Therefore, McGraw Hill's annualized ROA % for the quarter that ended in Mar. 2026 was -3.64%.
The historical rank and industry rank for McGraw Hill's ROA % or its related term are showing as below:
FRA:1LI'
s ROA % Range Over the Past 10 Years
Min: -15.12 Med: -2.37 Max: 1.92
Current: 0.62
During the past 7 years, McGraw Hill's highest ROA % was 1.92%. The lowest was -15.12%. And the median was -2.37%.
FRA:1LI's ROA % is ranked worse than 66.16% of 263
companies
in the Education industry
Industry Median: 3.9
vs FRA:1LI: 0.62
McGraw Hill (FRA:1LI) 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. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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.
McGraw Hill ROA % Related Terms
McGraw Hill ROA % Historical Data
* Premium members only.
The historical data trend for McGraw Hill'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.
For the Education & Training Services subindustry, McGraw Hill'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.
McGraw Hill ROA % vs Education Industry
For the Education industry and Consumer Defensive sector, McGraw Hill's ROA % distribution charts can be found below:
* The bar in red indicates where McGraw Hill'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. 2026) net income data.
ROA % is displayed in the 30-year financial page.
McGraw Hill (FRA:1LI) has a ROA % of -3.64% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on McGraw Hill and its competitors. According to the industry distribution chart, McGraw Hill ranks #174 out of 263 companies in the Education industry, placing it in the top 66.2%.
Is McGraw Hill's ROA % too high?
McGraw Hill's current ROA % is -3.64%. Based on the distribution chart, McGraw Hill ranks #174 out of 263 companies in the Education industry, which is below the industry midpoint. Overall, McGraw Hill has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does McGraw Hill's ROA % compare to UTI and PRDO?
According to the Education industry distribution chart, McGraw Hill ranks #174 out of 263 companies for ROA %. This places McGraw Hill in the lower half of its industry. The industry median ROA % is 3.90. 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 Education company?
The median ROA % among Education companies is 3.90, based on 263 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. 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 McGraw Hill and its competitors. For the Education industry, the median ROA % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGraw Hill's current ROA % is -3.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGraw Hill stock overvalued right now?
McGraw Hill (FRA:1LI) has a current ROA % of -3.64%. The current ROA % is -3.64%. McGraw Hill's overall GF Score™ is 31/100 with 5 warning signs to review. 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 McGraw Hill (FRA:1LI), the current ROA % is -3.64% as of Mar. 2026. 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.
McGraw Hill Inc is a provider of education solutions for K-12, higher education and professional learning markets. It is helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all. It operates at the intersection of proprietary content, software and data, using artificial intelligence to deliver personalized learning experiences, driving positive outcomes throughout the entire learning lifecycle. The company has four reportable segments K-12, Higher Education, Global Professional, International. It generates majority of revenue from K-12 which provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. It generates majority of revenue from United States.
31GF Score
Get the complete analysis for FRA:1LI
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:1LI has been successfully added to your 
