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InfraCom Group AB (FRA:8HG) ROA % : 17.37% (As of Mar. 2024)


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What is InfraCom Group AB ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. InfraCom Group AB's annualized Net Income for the quarter that ended in Mar. 2024 was €11.97 Mil. InfraCom Group AB's average Total Assets over the quarter that ended in Mar. 2024 was €68.89 Mil. Therefore, InfraCom Group AB's annualized ROA % for the quarter that ended in Mar. 2024 was 17.37%.

The historical rank and industry rank for InfraCom Group AB's ROA % or its related term are showing as below:

FRA:8HG' s ROA % Range Over the Past 10 Years
Min: 0.46   Med: 14   Max: 15.83
Current: 11.63

During the past 10 years, InfraCom Group AB's highest ROA % was 15.83%. The lowest was 0.46%. And the median was 14.00%.

FRA:8HG's ROA % is ranked better than
86.32% of 2822 companies
in the Software industry
Industry Median: 1.08 vs FRA:8HG: 11.63

InfraCom Group AB ROA % Historical Data

The historical data trend for InfraCom Group AB'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.

* Premium members only.

InfraCom Group AB ROA % Chart

InfraCom Group AB Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Dec19 Dec20 Dec21 Dec22
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.93 - 15.13 15.76 13.60

InfraCom Group AB Quarterly Data
Mar19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.75 12.20 10.62 4.94 17.37

Competitive Comparison of InfraCom Group AB's ROA %

For the Software - Infrastructure subindustry, InfraCom Group AB'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.


InfraCom Group AB's ROA % Distribution in the Software Industry

For the Software industry and Technology sector, InfraCom Group AB's ROA % distribution charts can be found below:

* The bar in red indicates where InfraCom Group AB's ROA % falls into.



InfraCom Group AB ROA % Calculation

InfraCom Group AB's annualized ROA % for the fiscal year that ended in Dec. 2022 is calculated as:

ROA %=Net Income (A: Dec. 2022 )/( (Total Assets (A: Dec. 2021 )+Total Assets (A: Dec. 2022 ))/ count )
=4.798/( (30.252+40.281)/ 2 )
=4.798/35.2665
=13.60 %

InfraCom Group AB's annualized ROA % for the quarter that ended in Mar. 2024 is calculated as:

ROA %=Net Income (Q: Mar. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Mar. 2024 ))/ count )
=11.968/( (66.978+70.795)/ 2 )
=11.968/68.8865
=17.37 %

* 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. 2024) net income data. ROA % is displayed in the 30-year financial page.


InfraCom Group AB  (FRA:8HG) 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 bank’s 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:

ROA %(Q: Mar. 2024 )
=Net Income/Total Assets
=11.968/68.8865
=(Net Income / Revenue)*(Revenue / Total Assets)
=(11.968 / 70.448)*(70.448 / 68.8865)
=Net Margin %*Asset Turnover
=16.99 %*1.0227
=17.37 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


InfraCom Group AB ROA % Related Terms

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InfraCom Group AB (FRA:8HG) Business Description

Traded in Other Exchanges
Address
Gamlestadsvagen 1, Gothenburg, SWE, 415 02
InfraCom Group AB owns, operates and develops cloud-based IT (information technology) services. Its business activities are divided into four divisions including cloud-based telephony, cloud-based IT operations, hosting and data communications and internet access. The Cloud-based Telephony business area offers a broad spectrum of Cloud-based telephony services through the proprietary Weblink Unified 2.0 platform. Cloud-based IT operations connect IT infrastructure as a service and offer customers login and control through a web portal. Hosting offers InfraCom infrastructure for server and data management. Data communication and Internet access offer connections to the Internet between geographical locations and premises.

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