ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. New Century Group Hong Kong's annualizedNet Income for the quarter that ended in Sep. 2023 was HK$51.26 Mil.
New Century Group Hong Kong's average Total Assets over the quarter that ended in Sep. 2023 was HK$2,061.81 Mil. Therefore, New Century Group Hong Kong's annualized ROA % for the quarter that ended in Sep. 2023 was 2.49%.
The historical rank and industry rank for New Century Group Hong Kong's ROA % or its related term are showing as below:
HKSE:00234'
s ROA % Range Over the Past 10 Years
Min: -2.64 Med: 1.18 Max: 8.1
Current: -0.13
During the past 13 years, New Century Group Hong Kong's highest ROA % was 8.10%. The lowest was -2.64%. And the median was 1.18%.
HKSE:00234's ROA % is ranked worse than 95.93% of 1474
companies
in the Banks industry
Industry Median: 0.895
vs HKSE:00234: -0.13
* 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 New Century Group Hong Kong's ROA %
For the Mortgage Finance subindustry, New Century Group Hong Kong'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.
New Century Group Hong Kong's ROA % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, New Century Group Hong Kong's ROA % distribution charts can be found below:
* The bar in red indicates where New Century Group Hong Kong's ROA % falls into.
New Century Group Hong Kong ROA % Calculation
New Century Group Hong Kong's annualized ROA % for the fiscal year that ended in Mar. 2023 is calculated as:
* 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 (Sep. 2023) net income data.
ROA % is displayed in the 30-year financial page.
New Century Group Hong Kong (HKSE:00234) 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 (Sep. 2023) net income data. The Revenue data used here is two times the semi-annual (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.
New Century Group Hong Kong ROA % Related Terms
Thank you for viewing the detailed overview of New Century Group Hong Kong's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
New Century Group Hong Kong (HKSE:00234) Business Description
New Century Group Hong Kong Ltd is an investment holding company. The firm along with its subsidiaries is engaged in the business segments of Property investments; Money lending services; and Securities trading, where the securities trading segment engages in the trading of marketable securities for short-term investment purposes, the property investments segment invests in prime office space and commercial shops for their rental income potential and the money lending segment engages in the provision of secured mortgage loans and unsecured personal loans. The company derives the majority of its revenue from the Money lending segment. The group operates in Hong Kong and the rest of Southeast Asia, of which maximum revenue is generated from Hong Kong.
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