ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Finserv Acquisition II's annualizedNet Income for the quarter that ended in Sep. 2023 was $0.02 Mil.
Finserv Acquisition II's average Total Assets over the quarter that ended in Sep. 2023 was $31.02 Mil. Therefore, Finserv Acquisition II's annualized ROA % for the quarter that ended in Sep. 2023 was 0.05%.
The historical rank and industry rank for Finserv Acquisition II's ROA % or its related term are showing as below:
FSRXW'
s ROA % Range Over the Past 10 Years
Min: 1.69 Med: 2.05 Max: 2.4
Current: 2.3
During the past 3 years, Finserv Acquisition II's highest ROA % was 2.40%. The lowest was 1.69%. And the median was 2.05%.
Finserv Acquisition II (NAS:FSRXW) 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 (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) 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 Shell Companies subindustry, Finserv Acquisition II'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.
Finserv Acquisition II ROA % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Finserv Acquisition II's ROA % distribution charts can be found below:
* The bar in red indicates where Finserv Acquisition II'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 (Sep. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Finserv Acquisition II (FSRXW) has a ROA % of 0.05% as of Sep. 2023. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Finserv Acquisition II and its competitors. This is 98% below median its historical median of 2.05. Over the past decade, Finserv Acquisition II's ROA % has ranged from 1.69 to 2.40.
Is Finserv Acquisition II's ROA % too high?
Finserv Acquisition II's current ROA % of 0.05% is 98% below median its 10-year median of 2.05. Over the past 10 years, this metric has ranged from a low of 1.69 to a high of 2.40. The Diversified Financial Services industry median ROA % is 0.90. Finserv Acquisition II's value of 0.05% is 94.4% below this industry median. Overall, Finserv Acquisition II has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Finserv Acquisition II's ROA % compare to ATMC and IMAQ?
Finserv Acquisition II's ROA % of 0.05% can be compared against companies in the Diversified Financial Services industry. The industry median ROA % is 0.90. Finserv Acquisition II's value of 0.05% is 94.4% below this benchmark. Historically, Finserv Acquisition II's own ROA % has ranged from 1.69 to 2.40 over the past decade. While the company's 10-year median is 2.05 vs. the industry median of 0.90, Finserv Acquisition II has consistently been below the industry average. 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 Diversified Financial Services company?
The median ROA % among Diversified Financial Services companies is 0.90, based on 565 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. Finserv Acquisition II's current ROA % of 0.05% is 94.4% below the industry median. 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 Finserv Acquisition II and its competitors. For the Diversified Financial Services industry, the median ROA % is 0.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Finserv Acquisition II's current ROA % is 0.05%, which is 98% below median its own 10-year median of 2.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finserv Acquisition II stock overvalued right now?
Finserv Acquisition II (FSRXW) has a current ROA % of 0.05%. The current ROA % is 0.05%, which is 98% below median its 10-year median of 2.05 and 94.4% below the Diversified Financial Services industry median of 0.90. Finserv Acquisition II's overall GF Score™ is 25/100 with 1 warning sign 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 Finserv Acquisition II (FSRXW), the current ROA % is 0.05% as of Sep. 2023. 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.
Finserv Acquisition Corp II is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses.
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