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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Edianyun's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$186 Mil.
Edianyun's average Total Assets over the quarter that ended in Dec. 2025 was HK$4,079 Mil. Therefore, Edianyun's annualized ROA % for the quarter that ended in Dec. 2025 was 4.57%.
The historical rank and industry rank for Edianyun's ROA % or its related term are showing as below:
HKSE:02416'
s ROA % Range Over the Past 10 Years
Min: -28.09 Med: -8.05 Max: 3.61
Current: 3.61
During the past 6 years, Edianyun's highest ROA % was 3.61%. The lowest was -28.09%. And the median was -8.05%.
HKSE:02416's ROA % is ranked better than 58.92% of 2892
companies
in the Software industry
Industry Median: 1.705
vs HKSE:02416: 3.61
Edianyun (HKSE:02416) 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.
Edianyun ROA % Related Terms
Edianyun ROA % Historical Data
* Premium members only.
The historical data trend for Edianyun's ROA % can be seen below:
* 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.
For the Information Technology Services subindustry, Edianyun'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.
Edianyun ROA % vs Software Industry
For the Software industry and Technology sector, Edianyun's ROA % distribution charts can be found below:
* The bar in red indicates where Edianyun'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Edianyun (HKSE:02416) has a ROA % of 4.57% 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 Edianyun and its competitors. According to the industry distribution chart, Edianyun ranks #1188 out of 2892 companies in the Software industry, placing it in the top 41.1%.
Is Edianyun's ROA % too high?
Edianyun's current ROA % is 4.57%. The Software industry median ROA % is 1.71. Edianyun's value of 4.57% is 168% above this industry median. Based on the distribution chart, Edianyun ranks #1188 out of 2892 companies in the Software industry, which is above the industry midpoint. Overall, Edianyun has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Edianyun's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Edianyun ranks #1188 out of 2892 companies for ROA %. This puts Edianyun in the upper half of its industry. The industry median ROA % is 1.71. Edianyun's value of 4.57% is 168% above this benchmark. 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 Software company?
The median ROA % among Software companies is 1.71, based on 2,892 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. Edianyun's current ROA % of 4.57% is 168% 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 Edianyun and its competitors. For the Software industry, the median ROA % is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edianyun's current ROA % is 4.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edianyun stock overvalued right now?
Based on GuruFocus' analysis, Edianyun (HKSE:02416) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$2.54, compared to a current price of HK$3.70 — trading 45.7% above its estimated fair value. The current ROA % is 4.57% and 168% above the Software industry median of 1.71. Edianyun's overall GF Score™ is 78/100 with 4 warning signs 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 Edianyun (HKSE:02416), the current ROA % is 4.57% 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.
Is Edianyun (HKSE:02416) Overvalued in 2026?
Based on GuruFocus' analysis, Edianyun stock appears to be overvalued.
The current stock price of HK$3.70 is trading 45.7% above its estimated GF Value™ of HK$2.54.
GuruFocus considers Edianyun to be Significantly Overvalued.
Key valuation signals for HKSE:02416:
ROA %: 4.57%
GF Value™: HK$2.54 vs. price of HK$3.70 (45.7% above fair value)
Industry Position: 168% above the Software median (#1188 of 2892)
No single metric tells the full story. See the HKSE:02416 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Edianyun Ltd is an investment holding company and the Group is principally engaged in providing office Internet Technology (IT) integrated solutions to small- and medium-sized enterprises in the PRC. It mainly competes in the office IT integrated solution to market, a fast-growing segment whose a penetration rate in the enterprise office. The segments of the company include: pay-as-you-go office IT integrated solutions, sales of devices, and SaaS and other services. It derives maximum revenue from pay-as-you-go office IT integrated solutions. All of the Group's revenue are derived from the PRC.
78GF Score
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ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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