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HKSE:02408's ROA % is ranked better than 77.35% of 362
companies
in the Restaurants industry
Industry Median: 2.19
vs HKSE:02408: 7.20
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) 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. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
Guangzhou Xiao Noodles Catering Management Co ROA % Related Terms
Guangzhou Xiao Noodles Catering Management 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.
Guangzhou Xiao Noodles Catering Management Co ROA % Chart
Guangzhou Xiao Noodles Catering Management Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROA %
-5.86
6.25
6.00
6.62
Guangzhou Xiao Noodles Catering Management Co Semi-Annual Data
* 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.
Guangzhou Xiao Noodles Catering Management Co ROA % vs Restaurants Industry
* 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. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a ROA % of 7.84% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Guangzhou Xiao Noodles Catering Management Co and its competitors. This is 28% above median its historical median of 6.13. According to the industry distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #82 out of 362 companies in the Restaurants industry, placing it in the top 22.7%.
Is Guangzhou Xiao Noodles Catering Management Co's ROA % too high?
Guangzhou Xiao Noodles Catering Management Co's current ROA % of 7.84% is 28% above median its 10-year median of 6.13. The Restaurants industry median ROA % is 2.19. Guangzhou Xiao Noodles Catering Management Co's value of 7.84% is 258% above this industry median. Based on the distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #82 out of 362 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Guangzhou Xiao Noodles Catering Management Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Guangzhou Xiao Noodles Catering Management Co's ROA % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #82 out of 362 companies for ROA %. This places Guangzhou Xiao Noodles Catering Management Co in the top 23% of its industry — outperforming the majority of peers. The industry median ROA % is 2.19. Guangzhou Xiao Noodles Catering Management Co's value of 7.84% is 258% above this benchmark. While the company's 10-year median is 6.13 vs. the industry median of 2.19, Guangzhou Xiao Noodles Catering Management Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Restaurants company?
The median ROA % among Restaurants companies is 2.19, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Guangzhou Xiao Noodles Catering Management Co's current ROA % of 7.84% is 258% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Guangzhou Xiao Noodles Catering Management Co and its competitors. For the Restaurants industry, the median ROA % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangzhou Xiao Noodles Catering Management Co's current ROA % is 7.84%, which is 28% above median its own 10-year median of 6.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangzhou Xiao Noodles Catering Management Co stock overvalued right now?
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a current ROA % of 7.84%. The current ROA % is 7.84%, which is 28% above median its 10-year median of 6.13 and 258% above the Restaurants industry median of 2.19. Guangzhou Xiao Noodles Catering Management Co's overall GF Score™ is 18/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Guangzhou Xiao Noodles Catering Management Co (HKSE:02408), the current ROA % is 7.84% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Guangzhou Xiao Noodles Catering Management Co Business Description
Guangzhou Xiao Noodles Catering Management Co Ltd is a Chinese noodle restaurants operator in China and operates the Xiao Noodles brand domestically and overseas. It provides a diverse array of its Sichuan and Chongqing dishes throughout the day, encompassing breakfast, afternoon tea, and late-night snacks. The company operates self-operated restaurants and franchised restaurants in the Chinese Mainland, Hong Kong SAR and in Singapore. The self-operated restaurant operations generate revenue from dine-in service and delivery business; and franchised management generates revenue from royalty and franchising income and provision of service, and sales of food ingredients and restaurant supplies.
18GF Score
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