ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. South China Financial Holdings's annualizedNet Income for the quarter that ended in Dec. 2023 was HK$-189.25 Mil.
South China Financial Holdings's average Total Assets over the quarter that ended in Dec. 2023 was HK$1,159.26 Mil. Therefore, South China Financial Holdings's annualized ROA % for the quarter that ended in Dec. 2023 was -16.32%.
The historical rank and industry rank for South China Financial Holdings's ROA % or its related term are showing as below:
HKSE:00619'
s ROA % Range Over the Past 10 Years
Min: -13.16 Med: -4.26 Max: 2.13
Current: -11.62
During the past 13 years, South China Financial Holdings's highest ROA % was 2.13%. The lowest was -13.16%. And the median was -4.26%.
HKSE:00619's ROA % is ranked worse than 87.18% of 811
companies
in the Capital Markets industry
Industry Median: 1.37
vs HKSE:00619: -11.62
South China Financial Holdings ROA % Historical 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.
Competitive Comparison of South China Financial Holdings's ROA %
For the Capital Markets subindustry, South China Financial Holdings'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.
South China Financial Holdings's ROA % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, South China Financial Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where South China Financial Holdings'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 two times the semi-annual (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
South China Financial Holdings (HKSE:00619) 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 (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 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.
South China Financial Holdings ROA % Related Terms
Thank you for viewing the detailed overview of South China Financial Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
South China Financial Holdings (HKSE:00619) Business Description
South China Financial Holdings Ltd is an investment holding company. Its business activities are segmented as Broking segment; Trading and investment segment; Margin financing and money lending segment; Corporate advisory and underwriting segment; Asset and wealth management segment; Property investment segment; Media publications and financial public relation services segment; Jewellery business segment; and other business segments that engage in the provision of clearing and custodian services. It generates key revenue from the Media publications and financial public relation services segment. The group generates prime revenue from Hong Kong.
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