ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nine Dragons Paper (Holdings)'s annualizedNet Income for the quarter that ended in Jun. 2024 was €117 Mil.
Nine Dragons Paper (Holdings)'s average Total Assets over the quarter that ended in Jun. 2024 was €17,138 Mil. Therefore, Nine Dragons Paper (Holdings)'s annualized ROA % for the quarter that ended in Jun. 2024 was 0.68%.
The historical rank and industry rank for Nine Dragons Paper (Holdings)'s ROA % or its related term are showing as below:
FRA:N3Y'
s ROA % Range Over the Past 10 Years
Min: -2.02 Med: 3.97 Max: 11.19
Current: 0.58
During the past 13 years, Nine Dragons Paper (Holdings)'s highest ROA % was 11.19%. The lowest was -2.02%. And the median was 3.97%.
FRA:N3Y's ROA % is ranked worse than 57.84% of 287
companies
in the Forest Products industry
Industry Median: 1.2
vs FRA:N3Y: 0.58
Nine Dragons Paper (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 Nine Dragons Paper (Holdings)'s ROA %
For the Paper & Paper Products subindustry, Nine Dragons Paper (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.
Nine Dragons Paper (Holdings)'s ROA % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Nine Dragons Paper (Holdings)'s ROA % distribution charts can be found below:
* The bar in red indicates where Nine Dragons Paper (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 two times the semi-annual (Jun. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Nine Dragons Paper (Holdings) (FRA:N3Y) 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 (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
Nine Dragons Paper (Holdings) ROA % Related Terms
Thank you for viewing the detailed overview of Nine Dragons Paper (Holdings)'s ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Nine Dragons Paper (Holdings) Business Description
Nine Dragons Paper (Holdings) Ltd operates as a paper products manufacturer. The company predominantly produces liner boards, corrugating medium, and coated duplex boards. In addition to packaging paperboard, the group is also engaged in the production of printing and writing paper in Dongguan and Taicang, as well as the development of packaging paperboard and specialty paper production in Leshan, Sichuan Province. A substantial part of the company's revenues are generated from the sale of packaging paper and the rest from sales of printing and writing paper, high-value specialty paper products, and Pulp.
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