ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Aeon Credit Service (Asia) Co's annualizedNet Income for the quarter that ended in Feb. 2024 was HK$440 Mil.
Aeon Credit Service (Asia) Co's average Total Assets over the quarter that ended in Feb. 2024 was HK$7,469 Mil. Therefore, Aeon Credit Service (Asia) Co's annualized ROA % for the quarter that ended in Feb. 2024 was 5.89%.
The historical rank and industry rank for Aeon Credit Service (Asia) Co's ROA % or its related term are showing as below:
HKSE:00900'
s ROA % Range Over the Past 10 Years
Min: 4.2 Med: 5.82 Max: 7.07
Current: 5.56
During the past 13 years, Aeon Credit Service (Asia) Co's highest ROA % was 7.07%. The lowest was 4.20%. And the median was 5.82%.
HKSE:00900's ROA % is ranked better than 82.02% of 534
companies
in the Credit Services industry
Industry Median: 1.88
vs HKSE:00900: 5.56
Aeon Credit Service (Asia) Co 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 Aeon Credit Service (Asia) Co's ROA %
For the Credit Services subindustry, Aeon Credit Service (Asia) 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.
Aeon Credit Service (Asia) Co's ROA % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Aeon Credit Service (Asia) Co's ROA % distribution charts can be found below:
* The bar in red indicates where Aeon Credit Service (Asia) 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 (Feb. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Aeon Credit Service (Asia) Co (HKSE:00900) 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 (Feb. 2024) net income data. The Revenue data used here is four times the quarterly (Feb. 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.
Aeon Credit Service (Asia) Co ROA % Related Terms
Thank you for viewing the detailed overview of Aeon Credit Service (Asia) Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aeon Credit Service (Asia) Co (HKSE:00900) Business Description
Aeon Credit Service (Asia) Co Ltd is engaged in the consumer finance business. Its activities include the issuance of credit cards and the provision of personal loan financing, insurance agency and brokerage business and microfinance business. The group's business comprises three operating segments, namely Credit card, Personal loans, and Insurance. It derives key revenue from the Credit card operation which involves the provision of credit card services to individuals and acquiring services for member-stores. Personal loans segment provides personal loan financing to individuals and the Insurance segment offers insurance agency and brokerage services. Geographically, the group has a business presence in Hong Kong and the PRC, of which a majority of the revenue is derived from Hong Kong.
Aeon Credit Service (Asia) Co (HKSE:00900) Headlines
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