Ridge Outdoor International (HKSE:02720) ROA %: 21.99% (As of Dec. 2025) — Near Median

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HKSE:02720 Ridge Outdoor International Ltd HKSE:02720
17 GF Score
Price HK$24.34
! 2 Warning Signs
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What is Ridge Outdoor International ROA %?

Ridge Outdoor International HKSE:02720 +1.25% 17 ROA % is 21.99% as of Dec. 2025, which is 7% above its 10-year median of 20.48. GuruFocus rates HKSE:02720 with a GF Score™ of 17/100. The stock has 2 warning signs investors should review. Among 434 Furnishings, Fixtures & Appliances companies, Ridge Outdoor International ranks better than 98.85% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ridge Outdoor International's annualized Net Income for the quarter that ended in Dec. 2025 was HK$81.6 Mil. Ridge Outdoor International's average Total Assets over the quarter that ended in Dec. 2025 was HK$371.2 Mil. Therefore, Ridge Outdoor International's annualized ROA % for the quarter that ended in Dec. 2025 was 21.99%.

The historical rank and industry rank for Ridge Outdoor International's ROA % or its related term are showing as below:

HKSE:02720' s ROA % Range Over the Past 10 Years
Min: 15.79   Med: 20.48   Max: 32.06
Current: 21.99

During the past 4 years, Ridge Outdoor International's highest ROA % was 32.06%. The lowest was 15.79%. And the median was 20.48%.

HKSE:02720's ROA % is ranked better than
98.85% of 434 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 2.215 vs HKSE:02720: 21.99

Ridge Outdoor International  (HKSE:02720) 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 bank’s 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:

ROA %(Q: Dec. 2025 )
=Net Income/Total Assets
=81.607/371.192
=(Net Income / Revenue)*(Revenue / Total Assets)
=(81.607 / 731.848)*(731.848 / 371.192)
=Net Margin %*Asset Turnover
=11.15 %*1.9716
=21.99 %

Note: The Net Income data used here is one times the annual (Dec. 2025) net income data. The Revenue data used here is one times the 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.


Ridge Outdoor International ROA % Related Terms


Ridge Outdoor International ROA % Historical Data

* Premium members only.

The historical data trend for Ridge Outdoor International's ROA % can be seen below:

* 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.

Ridge Outdoor International ROA % Chart

Ridge Outdoor International Annual Data
Trend Dec22 Dec23 Dec24 Dec25
ROA %
32.06 15.79 18.96 21.99

Ridge Outdoor International Semi-Annual Data
Dec22 Dec23 Dec24 Dec25
ROA % 32.06 15.79 18.96 21.99

HKSE:02720 vs SN, SGI, MHK: ROA % Comparison

For the Furnishings, Fixtures & Appliances subindustry, Ridge Outdoor International'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.


Ridge Outdoor International ROA % vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Ridge Outdoor International's ROA % distribution charts can be found below:

* The bar in red indicates where Ridge Outdoor International's ROA % falls into.


HKSE:02720
17GF Score
Ridge Outdoor International Ltd HKSE:02720
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ridge Outdoor International ROA % Calculation

Ridge Outdoor International's annualized ROA % for the fiscal year that ended in Dec. 2025 is calculated as:

ROA %=Net Income (A: Dec. 2025 )/( (Total Assets (A: Dec. 2024 )+Total Assets (A: Dec. 2025 ))/ count )
=81.607/( (363.365+379.019)/ 2 )
=81.607/371.192
=21.99 %

Ridge Outdoor International's annualized ROA % for the quarter that ended in Dec. 2025 is calculated as:

ROA %=Net Income (Q: Dec. 2025 )/( (Total Assets (Q: Dec. 2024 )+Total Assets (Q: Dec. 2025 ))/ count )
=81.607/( (363.365+379.019)/ 2 )
=81.607/371.192
=21.99 %

* 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 one times the annual (Dec. 2025) net income data. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 21.99% mean?
Ridge Outdoor International (HKSE:02720) has a ROA % of 21.99% 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 Ridge Outdoor International and its competitors. This is near median its historical median of 20.48. Over the past decade, Ridge Outdoor International's ROA % has ranged from 15.79 to 32.06. According to the industry distribution chart, Ridge Outdoor International ranks #5 out of 434 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 1.2%.
Is Ridge Outdoor International's ROA % too high?
Ridge Outdoor International's current ROA % of 21.99% is near median its 10-year median of 20.48. Over the past 10 years, this metric has ranged from a low of 15.79 to a high of 32.06. The Furnishings, Fixtures & Appliances industry median ROA % is 2.22. Ridge Outdoor International's value of 21.99% is 892.8% above this industry median. Based on the distribution chart, Ridge Outdoor International ranks #5 out of 434 companies in the Furnishings, Fixtures & Appliances industry, which is in the top quartile — a strong position relative to peers. Overall, Ridge Outdoor International has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Ridge Outdoor International's ROA % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Ridge Outdoor International ranks #5 out of 434 companies for ROA %. This places Ridge Outdoor International in the top 1% of its industry — outperforming the majority of peers. The industry median ROA % is 2.22. Ridge Outdoor International's value of 21.99% is 892.8% above this benchmark. Historically, Ridge Outdoor International's own ROA % has ranged from 15.79 to 32.06 over the past decade. While the company's 10-year median is 20.48 vs. the industry median of 2.22, Ridge Outdoor International 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 Furnishings, Fixtures & Appliances company?
The median ROA % among Furnishings, Fixtures & Appliances companies is 2.22, based on 434 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. Ridge Outdoor International's current ROA % of 21.99% is 892.8% 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 Ridge Outdoor International and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROA % is 2.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ridge Outdoor International's current ROA % is 21.99%, which is near median its own 10-year median of 20.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ridge Outdoor International stock overvalued right now?
Ridge Outdoor International (HKSE:02720) has a current ROA % of 21.99%. The current ROA % is 21.99%, which is near median its 10-year median of 20.48 and 892.8% above the Furnishings, Fixtures & Appliances industry median of 2.22. Ridge Outdoor International's overall GF Score™ is 17/100 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 Ridge Outdoor International (HKSE:02720), the current ROA % is 21.99% 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.

Ridge Outdoor International Business Description

Address No. 818, Pingshui East Street, 8th Floor, Building 1, Lok Fu Creative Center, Zhejiang Province, Hangzhou, CHN
Ridge Outdoor International Ltd is engaged in the fishing-related equipment industry. Fishing gear encompasses both fishing tackle and fishing-related equipment. Fishing tackle refers to the tools utilized for capturing fish from aquatic environments, such as fishing rods, reels, hooks, lines, and baits. Fishing-related equipment generally includes fishing chairs and bed chairs, seatboxes, barrows, backpacks, sleeping bags, and tents. The company operates a dual business model, combining OEM/ODM manufacturing capabilities with a growing OBM presence to address diverse market demands. Geographically, it generates the majority of its revenue from Europe.
17GF Score

Get the complete analysis for HKSE:02720

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$24.34
Price