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Melbourne Enterprises (HKSE:00158) ROA % : 0.51% (As of Mar. 2024)


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What is Melbourne Enterprises ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Melbourne Enterprises's annualized Net Income for the quarter that ended in Mar. 2024 was HK$37.9 Mil. Melbourne Enterprises's average Total Assets over the quarter that ended in Mar. 2024 was HK$7,412.4 Mil. Therefore, Melbourne Enterprises's annualized ROA % for the quarter that ended in Mar. 2024 was 0.51%.

The historical rank and industry rank for Melbourne Enterprises's ROA % or its related term are showing as below:

HKSE:00158' s ROA % Range Over the Past 10 Years
Min: -13.76   Med: 0.53   Max: 26.12
Current: -1.48

During the past 13 years, Melbourne Enterprises's highest ROA % was 26.12%. The lowest was -13.76%. And the median was 0.53%.

HKSE:00158's ROA % is ranked worse than
72.61% of 1818 companies
in the Real Estate industry
Industry Median: 1.12 vs HKSE:00158: -1.48

Melbourne Enterprises ROA % Historical Data

The historical data trend for Melbourne Enterprises'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.

* Premium members only.

Melbourne Enterprises ROA % Chart

Melbourne Enterprises Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -13.76 0.84 -1.64 -1.71 -2.14

Melbourne Enterprises Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.09 0.01 -3.44 0.51 -4.82

Competitive Comparison of Melbourne Enterprises's ROA %

For the Real Estate Services subindustry, Melbourne Enterprises'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.


Melbourne Enterprises's ROA % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Melbourne Enterprises's ROA % distribution charts can be found below:

* The bar in red indicates where Melbourne Enterprises's ROA % falls into.



Melbourne Enterprises ROA % Calculation

Melbourne Enterprises's annualized ROA % for the fiscal year that ended in Sep. 2023 is calculated as:

ROA %=Net Income (A: Sep. 2023 )/( (Total Assets (A: Sep. 2022 )+Total Assets (A: Sep. 2023 ))/ count )
=-129.165/( (7657.571+7431.815)/ 2 )
=-129.165/7544.693
=-1.71 %

Melbourne Enterprises's annualized ROA % for the quarter that ended in Mar. 2024 is calculated as:

ROA %=Net Income (Q: Mar. 2024 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Mar. 2024 ))/ count )
=37.922/( (7431.815+7392.93)/ 2 )
=37.922/7412.3725
=0.51 %

* 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 (Mar. 2024) net income data. ROA % is displayed in the 30-year financial page.


Melbourne Enterprises  (HKSE:00158) 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 bank’s 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:

ROA %(Q: Mar. 2024 )
=Net Income/Total Assets
=37.922/7412.3725
=(Net Income / Revenue)*(Revenue / Total Assets)
=(37.922 / 159.776)*(159.776 / 7412.3725)
=Net Margin %*Asset Turnover
=23.73 %*0.0216
=0.51 %

Note: The Net Income data used here is two times the semi-annual (Mar. 2024) net income data. The Revenue data used here is two times the semi-annual (Mar. 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.


Melbourne Enterprises ROA % Related Terms

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Melbourne Enterprises Business Description

Traded in Other Exchanges
N/A
Address
33 Queen’s Road Central, Rooms 2102-4, Melbourne Plaza, Hong Kong, HKG
Melbourne Enterprises Ltd is an investment holding company. The company's only operating segment is property investment. It generates maximum revenue from the Rental income. The properties under the company include Melbourne Plaza, Kimley Commercial Building, as well as residential properties in the Foshan Golf Club project.
Executives
Chung Kin Shu Kenneth 2304 Executor or administrator
Chung Yin Shu Frederick 2304 Executor or administrator

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