ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Redsun Services Group's annualizedNet Income for the quarter that ended in Jun. 2024 was HK$79 Mil.
Redsun Services Group's average Total Assets over the quarter that ended in Jun. 2024 was HK$1,836 Mil. Therefore, Redsun Services Group's annualized ROA % for the quarter that ended in Jun. 2024 was 4.29%.
The historical rank and industry rank for Redsun Services Group's ROA % or its related term are showing as below:
HKSE:01971'
s ROA % Range Over the Past 10 Years
Min: -0.37 Med: 10.6 Max: 20.98
Current: -0.37
During the past 7 years, Redsun Services Group's highest ROA % was 20.98%. The lowest was -0.37%. And the median was 10.60%.
HKSE:01971's ROA % is ranked worse than 67.48% of 1814
companies
in the Real Estate industry
Industry Median: 1.385
vs HKSE:01971: -0.37
* 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 Redsun Services Group's ROA %
For the Real Estate Services subindustry, Redsun Services Group'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.
Redsun Services Group's ROA % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Redsun Services Group's ROA % distribution charts can be found below:
* The bar in red indicates where Redsun Services Group'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 (Jun. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Redsun Services Group (HKSE:01971) 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 (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
Redsun Services Group ROA % Related Terms
Thank you for viewing the detailed overview of Redsun Services Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Redsun Services Group Ltd is a community service provider in Jiangsu province, China, with balanced property management abilities in the management of residential and commercial properties. The company provides property owners, commercial, residents and tenants with a wide range of property management services, including, among others, security, cleaning, greening and gardening, facility management, and repairs and maintenance services. It also provides Value-added services to non-property owners; and Community value-added services. It derives revenue from the provision of property management services, value-added services to non-property owners and community value-added services in Mainland China.
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