ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kaydon's annualizedNet Income for the quarter that ended in Jun. 2013 was €35.4 Mil.
Kaydon's average Total Assets over the quarter that ended in Jun. 2013 was €475.0 Mil. Therefore, Kaydon's annualized ROA % for the quarter that ended in Jun. 2013 was 7.46%.
The historical rank and industry rank for Kaydon's ROA % or its related term are showing as below:
FRA:KYD's ROA % is not ranked *
in the Industrial Products industry.
Industry Median: 3.54 * Ranked among companies with meaningful ROA % only.
Kaydon ROA % Historical Data
The historical data trend for Kaydon'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 Tools & Accessories subindustry, Kaydon'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.
Kaydon's ROA % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kaydon's ROA % distribution charts can be found below:
* The bar in red indicates where Kaydon's ROA % falls into.
Kaydon ROA % Calculation
Kaydon's annualized ROA % for the fiscal year that ended in Dec. 2012 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 four times the quarterly (Jun. 2013) net income data.
ROA % is displayed in the 30-year financial page.
Kaydon (FRA:KYD) 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 (Jun. 2013) net income data. The Revenue data used here is four times the quarterly (Jun. 2013) 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.
Kaydon ROA % Related Terms
Thank you for viewing the detailed overview of Kaydon's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kaydon Corporation was incorporated in 1983. The Company is a designer and manufacturer of custom engineered, performance-critical products supplying a broad and diverse customer base. The Company's main products now include bearings and components, filters and filter housings, custom rings, shaft seals, linear deceleration products, specialty balls, fuel cleansing systems, gas-phase air filtration systems and replacement media, industrial presses and metal alloy products. These products are used by customers in a variety of alternative energy, specialized robotics, medical, material handling, machine tool positioning, aerospace, defense, security, electronic and other industrial applications. The Company has two reportable segments and other operating segments engaged in the manufacture and sale of the following: Friction Control Products - complex components used in alternative energy, specialized robotics, medical, aerospace, defense, security, electronic, material handling, construction and other industrial applications. Products include anti-friction bearings, split roller bearings and specialty balls; Velocity Control Products - complex components used in specialized robotics, material handling, machine tool, medical, amusement and other industrial applications. Products include industrial shock absorbers, safety shock absorbers, velocity controls, gas springs and rotary dampers; and Other Industrial Products - complex and standard ring and seal products, filter elements and liquid and gas-phase filtration systems, metal alloys, machine tool components, presses, dies and benders used in a variety of applications. The Company sells its products in each segment through a sales organization consisting of salespersons and representatives located primarily throughout North America, Europe and Asia. The Company holds various patents, patent applications, licenses, trademarks and trade names. The Company's competitors include a number of other well-established manufacturers, as well as other smaller companies.
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