ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Dekon Food and Agriculture Group's annualizedNet Income for the quarter that ended in Jun. 2024 was HK$3,803 Mil.
Dekon Food and Agriculture Group's average Total Assets over the quarter that ended in Jun. 2024 was HK$22,115 Mil. Therefore, Dekon Food and Agriculture Group's annualized ROA % for the quarter that ended in Jun. 2024 was 17.20%.
* 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 Dekon Food and Agriculture Group's ROA %
For the Farm Products subindustry, Dekon Food and Agriculture 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.
Dekon Food and Agriculture Group's ROA % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Dekon Food and Agriculture Group's ROA % distribution charts can be found below:
* The bar in red indicates where Dekon Food and Agriculture Group's ROA % falls into.
Dekon Food and Agriculture Group 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 (Jun. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Dekon Food and Agriculture Group (HKSE:02419) 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.
Dekon Food and Agriculture Group ROA % Related Terms
Thank you for viewing the detailed overview of Dekon Food and Agriculture Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Dekon Food and Agriculture Group Business Description
Dekon Food and Agriculture Group is engaged in livestock and poultry breeding and farming enterprise in China. It is focusing on the breeding and farming of pigs and yellow-feathered broilers and has business in 39 cities across 13 provinces and autonomous regions in China. The company has three segments, namely pig, poultry, and ancillary products, which mainly include feed ingredients. The pig segment includes market hogs, breeding pigs, market piglets and boar semen, the Poultry segment includes yellow-feathered broilers and chicks hogs, breeding pigs, market piglets and boar semen and the ancillary segment includes sales of ingredients and others. The majority of the revenue is generated from the Pig segment.
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