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Horizon Construction Development (FRA:B7H) ROA % : 3.55% (As of Dec. 2024)


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What is Horizon Construction Development ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Horizon Construction Development's annualized Net Income for the quarter that ended in Dec. 2024 was €165 Mil. Horizon Construction Development's average Total Assets over the quarter that ended in Dec. 2024 was €4,648 Mil. Therefore, Horizon Construction Development's annualized ROA % for the quarter that ended in Dec. 2024 was 3.55%.

The historical rank and industry rank for Horizon Construction Development's ROA % or its related term are showing as below:

FRA:B7H' s ROA % Range Over the Past 10 Years
Min: 2.22   Med: 2.87   Max: 3.37
Current: 2.59

During the past 5 years, Horizon Construction Development's highest ROA % was 3.37%. The lowest was 2.22%. And the median was 2.87%.

FRA:B7H's ROA % is ranked worse than
57.28% of 1065 companies
in the Business Services industry
Industry Median: 3.64 vs FRA:B7H: 2.59

Horizon Construction Development ROA % Historical Data

The historical data trend for Horizon Construction Development'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.

Horizon Construction Development ROA % Chart

Horizon Construction Development Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
ROA %
2.87 3.45 2.29 3.05 2.67

Horizon Construction Development Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
ROA % Get a 7-Day Free Trial 3.34 1.52 4.68 1.61 3.55

Competitive Comparison of Horizon Construction Development's ROA %

For the Rental & Leasing Services subindustry, Horizon Construction Development'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.


Horizon Construction Development's ROA % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Horizon Construction Development's ROA % distribution charts can be found below:

* The bar in red indicates where Horizon Construction Development's ROA % falls into.



Horizon Construction Development ROA % Calculation

Horizon Construction Development's annualized ROA % for the fiscal year that ended in Dec. 2024 is calculated as:

ROA %=Net Income (A: Dec. 2024 )/( (Total Assets (A: Dec. 2023 )+Total Assets (A: Dec. 2024 ))/ count )
=117.569/( (4011.67+4779.024)/ 2 )
=117.569/4395.347
=2.67 %

Horizon Construction Development's annualized ROA % for the quarter that ended in Dec. 2024 is calculated as:

ROA %=Net Income (Q: Dec. 2024 )/( (Total Assets (Q: Jun. 2024 )+Total Assets (Q: Dec. 2024 ))/ count )
=164.772/( (4516.484+4779.024)/ 2 )
=164.772/4647.754
=3.55 %

* 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 two times the semi-annual (Dec. 2024) net income data. ROA % is displayed in the 30-year financial page.


Horizon Construction Development  (FRA:B7H) 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: Dec. 2024 )
=Net Income/Total Assets
=164.772/4647.754
=(Net Income / Revenue)*(Revenue / Total Assets)
=(164.772 / 1759.928)*(1759.928 / 4647.754)
=Net Margin %*Asset Turnover
=9.36 %*0.3787
=3.55 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2024) net income data. The Revenue data used here is two times the semi-annual (Dec. 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.


Horizon Construction Development ROA % Related Terms

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Horizon Construction Development Business Description

Traded in Other Exchanges
Address
200 Xichang Road, No. 5, 6-610, Building 2, Minghai Center, Tianjin Pilot Free Trade Zone, Dongjiang Bonded Port Area, Tianjin, CHN
Horizon Construction Development Ltd is an equipment operation service provider. The company's services include a nationwide operation network and one-stop equipment services including engineering construction, equipment leasing, equipment sales, spare parts sales, maintenance and manufacturing, and second-hand disposal. The company has three reportable operating segments, Operating lease services, Engineering and technical services, and Platform and other services. A majority of its revenue is generated from the Operating lease services segment which is engaged in leasing of equipment and materials to customers and generating revenue mainly from rental fees payable by customers.

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