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Nuobikan Artificial Intelligence Technology (Chengdu) Co (HKSE:02635) 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.
Nuobikan Artificial Intelligence Technology (Chengdu) Co ROA % Related Terms
Nuobikan Artificial Intelligence Technology (Chengdu) 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.
Nuobikan Artificial Intelligence Technology (Chengdu) Co ROA % Chart
Nuobikan Artificial Intelligence Technology (Chengdu) Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROA %
13.56
17.47
16.63
10.36
Nuobikan Artificial Intelligence Technology (Chengdu) 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.
Nuobikan Artificial Intelligence Technology (Chengdu) Co ROA % vs Software 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.
Nuobikan Artificial Intelligence Technology (Chengdu) Co (HKSE:02635) has a ROA % of 12.62% 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 Nuobikan Artificial Intelligence Technology (Chengdu) Co and its competitors. This is 16% below median its historical median of 15.10. Over the past decade, Nuobikan Artificial Intelligence Technology (Chengdu) Co's ROA % has ranged from 10.36 to 17.47. According to the industry distribution chart, Nuobikan Artificial Intelligence Technology (Chengdu) Co ranks #487 out of 2895 companies in the Software industry, placing it in the top 16.8%.
Is Nuobikan Artificial Intelligence Technology (Chengdu) Co's ROA % too high?
Nuobikan Artificial Intelligence Technology (Chengdu) Co's current ROA % of 12.62% is 16% below median its 10-year median of 15.10. Over the past 10 years, this metric has ranged from a low of 10.36 to a high of 17.47. The Software industry median ROA % is 1.72. Nuobikan Artificial Intelligence Technology (Chengdu) Co's value of 12.62% is 633.7% above this industry median. Based on the distribution chart, Nuobikan Artificial Intelligence Technology (Chengdu) Co ranks #487 out of 2895 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Nuobikan Artificial Intelligence Technology (Chengdu) Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Nuobikan Artificial Intelligence Technology (Chengdu) Co's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Nuobikan Artificial Intelligence Technology (Chengdu) Co ranks #487 out of 2895 companies for ROA %. This places Nuobikan Artificial Intelligence Technology (Chengdu) Co in the top 17% of its industry — outperforming the majority of peers. The industry median ROA % is 1.72. Nuobikan Artificial Intelligence Technology (Chengdu) Co's value of 12.62% is 633.7% above this benchmark. Historically, Nuobikan Artificial Intelligence Technology (Chengdu) Co's own ROA % has ranged from 10.36 to 17.47 over the past decade. While the company's 10-year median is 15.10 vs. the industry median of 1.72, Nuobikan Artificial Intelligence Technology (Chengdu) 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 Software company?
The median ROA % among Software companies is 1.72, based on 2,895 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. Nuobikan Artificial Intelligence Technology (Chengdu) Co's current ROA % of 12.62% is 633.7% 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 Nuobikan Artificial Intelligence Technology (Chengdu) Co and its competitors. For the Software industry, the median ROA % is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nuobikan Artificial Intelligence Technology (Chengdu) Co's current ROA % is 12.62%, which is 16% below median its own 10-year median of 15.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nuobikan Artificial Intelligence Technology (Chengdu) Co stock overvalued right now?
Nuobikan Artificial Intelligence Technology (Chengdu) Co (HKSE:02635) has a current ROA % of 12.62%. The current ROA % is 12.62%, which is 16% below median its 10-year median of 15.10 and 633.7% above the Software industry median of 1.72. Nuobikan Artificial Intelligence Technology (Chengdu) Co's overall GF Score™ is 22/100 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 Nuobikan Artificial Intelligence Technology (Chengdu) Co (HKSE:02635), the current ROA % is 12.62% 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.
Nuobikan Artificial Intelligence Technology (Chengdu) Co Ltd develops and sells monitoring and inspection products and solutions for railway operation and power grid companies, and other urban management solutions in the PRC. It mainly provides integrated software and hardware solutions adopting comprehensive AI industry models for monitoring, inspection and maintenance purposes. The company generates revenue from businesses including (i) rail transit for transportation solution business, (ii) electricity for energy solution business, and (iii) urban management solution business. The company generates the majority of revenue from the Urban management solution business. Geographically, it derives the maximum revenue from China.
22GF Score
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