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Beijing Xunzhong Communication Technology Co (HKSE:02597) 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.
Beijing Xunzhong Communication Technology Co ROA % Related Terms
Beijing Xunzhong Communication Technology 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.
Beijing Xunzhong Communication Technology Co ROA % Chart
Beijing Xunzhong Communication Technology Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROA %
7.66
7.00
3.94
4.37
Beijing Xunzhong Communication Technology 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.
Beijing Xunzhong Communication Technology Co ROA % vs Telecommunication Services 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.
Beijing Xunzhong Communication Technology Co (HKSE:02597) has a ROA % of 5.54% 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 Beijing Xunzhong Communication Technology Co and its competitors. This is near median its historical median of 5.69. Over the past decade, Beijing Xunzhong Communication Technology Co's ROA % has ranged from 3.94 to 7.66. According to the industry distribution chart, Beijing Xunzhong Communication Technology Co ranks #135 out of 367 companies in the Telecommunication Services industry, placing it in the top 36.8%.
Is Beijing Xunzhong Communication Technology Co's ROA % too high?
Beijing Xunzhong Communication Technology Co's current ROA % of 5.54% is near median its 10-year median of 5.69. Over the past 10 years, this metric has ranged from a low of 3.94 to a high of 7.66. The Telecommunication Services industry median ROA % is 2.73. Beijing Xunzhong Communication Technology Co's value of 5.54% is 102.9% above this industry median. Based on the distribution chart, Beijing Xunzhong Communication Technology Co ranks #135 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Beijing Xunzhong Communication Technology Co has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Beijing Xunzhong Communication Technology Co's ROA % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Beijing Xunzhong Communication Technology Co ranks #135 out of 367 companies for ROA %. This puts Beijing Xunzhong Communication Technology Co in the upper half of its industry. The industry median ROA % is 2.73. Beijing Xunzhong Communication Technology Co's value of 5.54% is 102.9% above this benchmark. Historically, Beijing Xunzhong Communication Technology Co's own ROA % has ranged from 3.94 to 7.66 over the past decade. While the company's 10-year median is 5.69 vs. the industry median of 2.73, Beijing Xunzhong Communication Technology 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 Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.73, based on 367 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. Beijing Xunzhong Communication Technology Co's current ROA % of 5.54% is 102.9% 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 Beijing Xunzhong Communication Technology Co and its competitors. For the Telecommunication Services industry, the median ROA % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beijing Xunzhong Communication Technology Co's current ROA % is 5.54%, which is near median its own 10-year median of 5.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Xunzhong Communication Technology Co stock overvalued right now?
Beijing Xunzhong Communication Technology Co (HKSE:02597) has a current ROA % of 5.54%. The current ROA % is 5.54%, which is near median its 10-year median of 5.69 and 102.9% above the Telecommunication Services industry median of 2.73. Beijing Xunzhong Communication Technology Co's overall GF Score™ is 19/100 with 2 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 Beijing Xunzhong Communication Technology Co (HKSE:02597), the current ROA % is 5.54% 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.
Beijing Xunzhong Communication Technology Co Ltd is a cloud-based communication service provider. Communications Platform as a Service, also known as CPaaS, is at the core of its business. On its cloud-based CPaaS platform, its customers, principally internet companies, software and information technology companies, and financial institutions, have convenient access to a vast array of integrated telecommunications resources, covering voice, messaging, and mobile data capabilities, which the company sources from majorly telecommunications operators and other service providers in China.
19GF Score
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