ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Resources Connection's annualizedNet Income for the quarter that ended in Feb. 2026 was €-32.0 Mil.
Resources Connection's average Total Assets over the quarter that ended in Feb. 2026 was €241.1 Mil. Therefore, Resources Connection's annualized ROA % for the quarter that ended in Feb. 2026 was -13.29%.
The historical rank and industry rank for Resources Connection's ROA % or its related term are showing as below:
FRA:RCO'
s ROA % Range Over the Past 10 Years
Min: -47.03 Med: 5.36 Max: 12.19
Current: -31.95
During the past 13 years, Resources Connection's highest ROA % was 12.19%. The lowest was -47.03%. And the median was 5.36%.
FRA:RCO's ROA % is ranked worse than 94.53% of 1096
companies
in the Business Services industry
Industry Median: 3.455
vs FRA:RCO: -31.95
Resources Connection (FRA:RCO) 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 (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) 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.
* 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 Consulting Services subindustry, Resources Connection'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.
Resources Connection ROA % vs Business Services Industry
For the Business Services industry and Industrials sector, Resources Connection's ROA % distribution charts can be found below:
* The bar in red indicates where Resources Connection'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 four times the quarterly (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Resources Connection (FRA:RCO) has a ROA % of -13.29% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Resources Connection and its competitors. According to the industry distribution chart, Resources Connection ranks #1036 out of 1096 companies in the Business Services industry, placing it in the top 94.5%.
Is Resources Connection's ROA % too high?
Resources Connection's current ROA % is -13.29%. Based on the distribution chart, Resources Connection ranks #1036 out of 1096 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Resources Connection has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Resources Connection's ROA % compare to FORR and EGG?
According to the Business Services industry distribution chart, Resources Connection ranks #1036 out of 1096 companies for ROA %. This places Resources Connection in the lower half of its industry. The industry median ROA % is 3.46. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Business Services company?
The median ROA % among Business Services companies is 3.46, based on 1,096 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Resources Connection and its competitors. For the Business Services industry, the median ROA % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Resources Connection's current ROA % is -13.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resources Connection stock overvalued right now?
Resources Connection (FRA:RCO) has a current ROA % of -13.29%. The stock's GF Value™ is €5.75, compared to a current price of €3.52 — trading 38.8% below its estimated fair value. The current ROA % is -13.29%. Resources Connection's overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Resources Connection (FRA:RCO), the current ROA % is -13.29% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Resources Connection (FRA:RCO) Overvalued in 2026?
Based on GuruFocus' analysis, Resources Connection stock appears to be undervalued.
The current stock price of €3.52 is trading 38.8% below its estimated GF Value™ of €5.75.
Key valuation signals for FRA:RCO:
ROA %: -13.29%
GF Value™: €5.75 vs. price of €3.52 (38.8% below fair value)
No single metric tells the full story. See the FRA:RCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Resources Connection Inc provides consulting and business initiative support services predominantly through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Sitrick. The RGP segment is focused on delivering consulting services catering to its client's operational needs and change initiatives utilizing a combination of bench and on-demand, talent. The Sitrick segment provides corporate, financial, transactional, and crisis communication and management services. The company generates a majority of its revenue from the RGP segment. Geographically, it derives its key revenue from North America and the rest from Europe and the Asia Pacific region.
60GF Score
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