ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Beijing Luzhu Biotechnology Co's annualizedNet Income for the quarter that ended in Jun. 2024 was HK$-236.71 Mil.
Beijing Luzhu Biotechnology Co's average Total Assets over the quarter that ended in Jun. 2024 was HK$1,231.35 Mil. Therefore, Beijing Luzhu Biotechnology Co's annualized ROA % for the quarter that ended in Jun. 2024 was -19.22%.
The historical rank and industry rank for Beijing Luzhu Biotechnology Co's ROA % or its related term are showing as below:
HKSE:02480'
s ROA % Range Over the Past 10 Years
Min: -77.72 Med: -74.3 Max: -15.12
Current: -15.12
During the past 4 years, Beijing Luzhu Biotechnology Co's highest ROA % was -15.12%. The lowest was -77.72%. And the median was -74.30%.
HKSE:02480's ROA % is ranked better than 68.29% of 1498
companies
in the Biotechnology industry
Industry Median: -34.185
vs HKSE:02480: -15.12
Beijing Luzhu Biotechnology 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.
Competitive Comparison of Beijing Luzhu Biotechnology Co's ROA %
For the Biotechnology subindustry, Beijing Luzhu Biotechnology Co'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.
Beijing Luzhu Biotechnology Co's ROA % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Beijing Luzhu Biotechnology Co's ROA % distribution charts can be found below:
* The bar in red indicates where Beijing Luzhu Biotechnology Co'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.
Beijing Luzhu Biotechnology Co (HKSE:02480) 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.
Beijing Luzhu Biotechnology Co ROA % Related Terms
Thank you for viewing the detailed overview of Beijing Luzhu Biotechnology Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Beijing Luzhu Biotechnology Co Business Description
Beijing Luzhu Biotechnology Co Ltd is a biotechnology company committed to developing human vaccines and therapeutic biologics to prevent and control infectious diseases and treat cancer and autoimmune diseases. Its clinical-stage product candidates comprise one vaccine candidate, LZ901 and two antibody injection product candidates, including K3 and K193. LZ901 is its Core Product.
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