Hongchang International CoHCIL 27 ROA % is 1.91% as of Dec. 2025. GuruFocus rates HCIL with a GF Score™ of 27/100. The stock has 6 warning signs investors should review. Among 312 Retail - Defensive companies, Hongchang International Co ranks better than 56.09% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hongchang International Co's annualizedNet Income for the quarter that ended in Dec. 2025 was $1.22 Mil.
Hongchang International Co's average Total Assets over the quarter that ended in Dec. 2025 was $63.81 Mil. Therefore, Hongchang International Co's annualized ROA % for the quarter that ended in Dec. 2025 was 1.91%.
The historical rank and industry rank for Hongchang International Co's ROA % or its related term are showing as below:
HCIL'
s ROA % Range Over the Past 10 Years
Min: -423.73 Med: -104.78 Max: 4.12
Current: 4.12
During the past 13 years, Hongchang International Co's highest ROA % was 4.12%. The lowest was -423.73%. And the median was -104.78%.
HCIL's ROA % is ranked better than 56.09% of 312
companies
in the Retail - Defensive industry
Industry Median: 3.615
vs HCIL: 4.12
Hongchang International Co (OTCPK:HCIL) 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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) 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 Food Distribution subindustry, Hongchang International Co'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.
Hongchang International Co ROA % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Hongchang International Co's ROA % distribution charts can be found below:
* The bar in red indicates where Hongchang International Co'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Hongchang International Co (HCIL) has a ROA % of 1.91% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hongchang International Co and its competitors. According to the industry distribution chart, Hongchang International Co ranks #137 out of 312 companies in the Retail - Defensive industry, placing it in the top 43.9%.
Is Hongchang International Co's ROA % too high?
Hongchang International Co's current ROA % is 1.91%. The Retail - Defensive industry median ROA % is 3.62. Hongchang International Co's value of 1.91% is 47.2% below this industry median. Based on the distribution chart, Hongchang International Co ranks #137 out of 312 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Hongchang International Co has a GF Score™ of 27/100, reflecting its overall financial health beyond just this single metric.
How does Hongchang International Co's ROA % compare to TWG and DIT?
According to the Retail - Defensive industry distribution chart, Hongchang International Co ranks #137 out of 312 companies for ROA %. This puts Hongchang International Co in the upper half of its industry. The industry median ROA % is 3.62. Hongchang International Co's value of 1.91% is 47.2% below this benchmark. 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 Retail - Defensive company?
The median ROA % among Retail - Defensive companies is 3.62, based on 312 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. Hongchang International Co's current ROA % of 1.91% is 47.2% 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 Hongchang International Co and its competitors. For the Retail - Defensive industry, the median ROA % is 3.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongchang International Co's current ROA % is 1.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongchang International Co stock overvalued right now?
Hongchang International Co (HCIL) has a current ROA % of 1.91%. The current ROA % is 1.91% and 47.2% below the Retail - Defensive industry median of 3.62. Hongchang International Co's overall GF Score™ is 27/100 with 6 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 Hongchang International Co (HCIL), the current ROA % is 1.91% as of Dec. 2025. 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.
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