ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Xinhua Education Group's annualizedNet Income for the quarter that ended in Dec. 2023 was HK$274.9 Mil.
China Xinhua Education Group's average Total Assets over the quarter that ended in Dec. 2023 was HK$4,670.4 Mil. Therefore, China Xinhua Education Group's annualized ROA % for the quarter that ended in Dec. 2023 was 5.89%.
The historical rank and industry rank for China Xinhua Education Group's ROA % or its related term are showing as below:
HKSE:02779'
s ROA % Range Over the Past 10 Years
Min: 5.52 Med: 11.16 Max: 16.86
Current: 7.19
During the past 10 years, China Xinhua Education Group's highest ROA % was 16.86%. The lowest was 5.52%. And the median was 11.16%.
HKSE:02779's ROA % is ranked better than 71.38% of 269
companies
in the Education industry
Industry Median: 2.75
vs HKSE:02779: 7.19
China Xinhua Education Group 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 China Xinhua Education Group's ROA %
For the Education & Training Services subindustry, China Xinhua Education Group'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.
China Xinhua Education Group's ROA % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, China Xinhua Education Group's ROA % distribution charts can be found below:
* The bar in red indicates where China Xinhua Education Group'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 (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
China Xinhua Education Group (HKSE:02779) 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. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 2023) 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.
China Xinhua Education Group ROA % Related Terms
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China Xinhua Education Group (HKSE:02779) Business Description
China Xinhua Education Group Ltd is principally engaged in the provision of education services in China. It mainly provides private formal higher education and formal secondary vocational education in the Yangtze River Delta. It currently operates four private schools, namely Anhui Xinhua University, School of Clinical Medicine jointly operated by the Group and Anhui Medical University, Hongshan College, a college jointly operated by the Group and Nanjing University of Finance & Economics Hongshan College, and Anhui Xinhua School. The company generates revenues from tuition fees, and boarding fees out of which tuition fees contribute the majority part.
China Xinhua Education Group (HKSE:02779) Headlines
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