ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Suntien Green Energy's annualizedNet Income for the quarter that ended in Mar. 2024 was HK$3,616 Mil.
China Suntien Green Energy's average Total Assets over the quarter that ended in Mar. 2024 was HK$86,517 Mil. Therefore, China Suntien Green Energy's annualized ROA % for the quarter that ended in Mar. 2024 was 4.18%.
The historical rank and industry rank for China Suntien Green Energy's ROA % or its related term are showing as below:
HKSE:00956'
s ROA % Range Over the Past 10 Years
Min: 0.68 Med: 2.97 Max: 3.6
Current: 1.91
During the past 13 years, China Suntien Green Energy's highest ROA % was 3.60%. The lowest was 0.68%. And the median was 2.97%.
HKSE:00956's ROA % is ranked worse than 65.72% of 528
companies
in the Utilities - Regulated industry
Industry Median: 2.885
vs HKSE:00956: 1.91
* 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 China Suntien Green Energy's ROA %
For the Utilities - Diversified subindustry, China Suntien Green Energy'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.
China Suntien Green Energy's ROA % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Suntien Green Energy's ROA % distribution charts can be found below:
* The bar in red indicates where China Suntien Green Energy's ROA % falls into.
China Suntien Green Energy ROA % Calculation
China Suntien Green Energy's annualized ROA % for the fiscal year that ended in Dec. 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 four times the quarterly (Mar. 2024) net income data.
ROA % is displayed in the 30-year financial page.
China Suntien Green Energy (HKSE:00956) 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 (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (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.
China Suntien Green Energy ROA % Related Terms
Thank you for viewing the detailed overview of China Suntien Green Energy's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
China Suntien Green Energy (HKSE:00956) Business Description
China Suntien Green Energy is engaged in the wind power, photovoltaic, and natural gas businesses. The natural gas segment is involved in the sales of natural gas and gas appliances, and the provision of construction and connection services of natural gas pipelines. The wind and solar energy segment sells electricity to external grid companies by operating wind farms and solar energy plants. In 2022, the firm's natural gas transmission volume was 4,501 million cubic meters, while sales volume of electricity was 13.87 billion kilowatt-hours. As of end-2022, the firm had consolidated renewable energy (wind and solar) installed capacity of 5.94 gigawatts.
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