ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. BJ's Wholesale Club Holdings's annualizedNet Income for the quarter that ended in Oct. 2024 was €572 Mil.
BJ's Wholesale Club Holdings's average Total Assets over the quarter that ended in Oct. 2024 was €6,507 Mil. Therefore, BJ's Wholesale Club Holdings's annualized ROA % for the quarter that ended in Oct. 2024 was 8.79%.
The historical rank and industry rank for BJ's Wholesale Club Holdings's ROA % or its related term are showing as below:
FRA:8BJ'
s ROA % Range Over the Past 10 Years
Min: 1.37 Med: 6.05 Max: 8.54
Current: 8.08
During the past 9 years, BJ's Wholesale Club Holdings's highest ROA % was 8.54%. The lowest was 1.37%. And the median was 6.05%.
FRA:8BJ's ROA % is ranked better than 79.5% of 317
companies
in the Retail - Defensive industry
Industry Median: 3.84
vs FRA:8BJ: 8.08
BJ's Wholesale Club Holdings 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.
Competitive Comparison of BJ's Wholesale Club Holdings's ROA %
For the Discount Stores subindustry, BJ's Wholesale Club Holdings'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.
BJ's Wholesale Club Holdings's ROA % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, BJ's Wholesale Club Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where BJ's Wholesale Club Holdings'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 (Oct. 2024) net income data.
ROA % is displayed in the 30-year financial page.
BJ's Wholesale Club Holdings (FRA:8BJ) 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 (Oct. 2024) net income data. The Revenue data used here is four times the quarterly (Oct. 2024) 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.
BJ's Wholesale Club Holdings ROA % Related Terms
Thank you for viewing the detailed overview of BJ's Wholesale Club Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
BJ's Wholesale serves as one of the few warehouse club chains in the United States. Its more than 240 warehouses are primarily located along the East Coast, most prominently in the New England area. Similar to its warehouse club peers, BJ's charges annual membership fees and keeps costs down by operating a "no-frills" store environment. The company limits the use of distribution centers where possible and stores inventory on pallets directly on the sales floor, often in bulk quantities. The company also offers a limited assortment of 7,000 stock-keeping units at its warehouses to achieve greater procurement scale on select items. About 80% of BJ's net sales come from grocery items and general merchandise, with the remaining 20% coming from gasoline and other ancillary services.
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