ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Balamara Resources's annualizedNet Income for the quarter that ended in Dec. 2014 was €-3.94 Mil.
Balamara Resources's average Total Assets over the quarter that ended in Dec. 2014 was €6.05 Mil. Therefore, Balamara Resources's annualized ROA % for the quarter that ended in Dec. 2014 was -65.16%.
The historical rank and industry rank for Balamara Resources's ROA % or its related term are showing as below:
FRA:CDU's ROA % is not ranked *
in the Metals & Mining industry.
Industry Median: -15.07 * Ranked among companies with meaningful ROA % only.
Balamara Resources ROA % Historical Data
The historical data trend for Balamara Resources'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.
Competitive Comparison of Balamara Resources's ROA %
For the Other Industrial Metals & Mining subindustry, Balamara Resources'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.
Balamara Resources's ROA % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Balamara Resources's ROA % distribution charts can be found below:
* The bar in red indicates where Balamara Resources's ROA % falls into.
Balamara Resources ROA % Calculation
Balamara Resources's annualized ROA % for the fiscal year that ended in Jun. 2014 is calculated as:
* 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. 2014) net income data.
ROA % is displayed in the 30-year financial page.
Balamara Resources (FRA:CDU) 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 two times the semi-annual (Dec. 2014) net income data. The Revenue data used here is two times the semi-annual (Dec. 2014) 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.
Balamara Resources ROA % Related Terms
Thank you for viewing the detailed overview of Balamara Resources's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Balamara Resources Ltd formerly known as Sultan Corporation Limited was incorporated in New South Wales on 16 August 1993 under the name of Asia-Pacific Minerals NL and on 21 November 1993 it changed its name to Caledonian Pacific Minerals NL. On 13 May, 2000 the Company changed its name again to Quadtel NL. The name of the Company was changed once more to Wytomic Limited on 17 February, 2005. The Company is engaged in exploration of mineral resources and reserves, primarily in Central Europe. It acquires assets at low cost with significant upside potential and develops them to a pre-production status. The Company's projects are located in Poland, Montenegro, Bosnia and NSW Australia. It operates in three reportable segments: Exploration Balkans region, Exploration Poland, and Exploration Australia.
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