ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Huirong Financial Holdings's annualizedNet Income for the quarter that ended in Dec. 2023 was HK$41.2 Mil.
China Huirong Financial Holdings's average Total Assets over the quarter that ended in Dec. 2023 was HK$3,432.3 Mil. Therefore, China Huirong Financial Holdings's annualized ROA % for the quarter that ended in Dec. 2023 was 1.20%.
HKSE:01290'
s ROA % Range Over the Past 10 Years
Min: 0.08 Med: 1.71 Max: 7.34
Current: 1.58
During the past 12 years, China Huirong Financial Holdings's highest ROA % was 7.34%. The lowest was 0.08%. And the median was 1.71%.
HKSE:01290's ROA % is ranked better than 69.66% of 557
companies
in the Diversified Financial Services industry
Industry Median: -1.4
vs HKSE:01290: 1.58
China Huirong 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 China Huirong Financial Holdings's ROA %
For the Financial Conglomerates subindustry, China Huirong 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.
China Huirong Financial Holdings's ROA % Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, China Huirong Financial Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where China Huirong Financial Holdings's ROA % falls into.
China Huirong Financial Holdings ROA % Calculation
* 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.
China Huirong Financial Holdings (HKSE:01290) 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.
China Huirong Financial Holdings ROA % Related Terms
Thank you for viewing the detailed overview of China Huirong Financial Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
China Huirong Financial Holdings Business Description
China Huirong Financial Holdings Ltd is an investment holding company. Its business divisions are the Inclusive finance business and Ecology finance business division. The Inclusive finance business division refers to the provision of lending services in the PRC. From the product perspective, the inclusive finance business division is principally engaged in lending services through granting secured loans and unsecured loans to customers. The ecology finance business division which is the key revenue driver, mainly dedicates services to supply chain, loan facilitation technology, factoring, insurance agency, and equity investment business.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:01290 has been successfully added to your 