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Shanghai Able Digital Science & Tech Co (HKSE:02687) 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.
Shanghai Able Digital Science & Tech Co ROA % Related Terms
Shanghai Able Digital Science & Tech 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.
Shanghai Able Digital Science & Tech Co ROA % Chart
Shanghai Able Digital Science & Tech Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROA %
-10.45
13.51
14.63
12.29
Shanghai Able Digital Science & Tech Co Semi-Annual Data
For the Software - Application subindustry, Shanghai Able Digital Science & Tech 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.
Shanghai Able Digital Science & Tech 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.
Shanghai Able Digital Science & Tech Co (HKSE:02687) has a ROA % of 45.25% 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 Shanghai Able Digital Science & Tech Co and its competitors. This is 251% above median its historical median of 12.90. According to the industry distribution chart, Shanghai Able Digital Science & Tech Co ranks #307 out of 2898 companies in the Software industry, placing it in the top 10.6%.
Is Shanghai Able Digital Science & Tech Co's ROA % too high?
Shanghai Able Digital Science & Tech Co's current ROA % of 45.25% is 251% above median its 10-year median of 12.90. The Software industry median ROA % is 1.75. Shanghai Able Digital Science & Tech Co's value of 45.25% is 2485.7% above this industry median. Based on the distribution chart, Shanghai Able Digital Science & Tech Co ranks #307 out of 2898 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Shanghai Able Digital Science & Tech Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Able Digital Science & Tech Co's ROA % compare to QH and SHOP?
According to the Software industry distribution chart, Shanghai Able Digital Science & Tech Co ranks #307 out of 2898 companies for ROA %. This places Shanghai Able Digital Science & Tech Co in the top 11% of its industry — outperforming the majority of peers. The industry median ROA % is 1.75. Shanghai Able Digital Science & Tech Co's value of 45.25% is 2485.7% above this benchmark. While the company's 10-year median is 12.90 vs. the industry median of 1.75, Shanghai Able Digital Science & Tech 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 1.75, based on 2,898 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. Shanghai Able Digital Science & Tech Co's current ROA % of 45.25% is 2485.7% 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 Shanghai Able Digital Science & Tech Co and its competitors. For the Software industry, the median ROA % is 1.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Able Digital Science & Tech Co's current ROA % is 45.25%, which is 251% above median its own 10-year median of 12.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Able Digital Science & Tech Co stock overvalued right now?
Shanghai Able Digital Science & Tech Co (HKSE:02687) has a current ROA % of 45.25%. The current ROA % is 45.25%, which is 251% above median its 10-year median of 12.90 and 2485.7% above the Software industry median of 1.75. Shanghai Able Digital Science & Tech Co's overall GF Score™ is 20/100 with 9 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 Shanghai Able Digital Science & Tech Co (HKSE:02687), the current ROA % is 45.25% 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.
Shanghai Able Digital Science & Tech Co Ltd provides digital solutions for higher education in China. The company develops and operates digital educational content and related teaching and learning products for higher education institutions. Its products and services cover areas including teaching, learning, practice, testing, evaluation, and management. The company's business operations are divided into two categories based on its offerings: digital educational content services and products; and digital teaching and learning environment services and products in the PRC. It generates the majority of its revenue from digital educational content services and products.
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