ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Zhongzhi Pharmaceutical Holdings's annualizedNet Income for the quarter that ended in Jun. 2024 was HK$180 Mil.
Zhongzhi Pharmaceutical Holdings's average Total Assets over the quarter that ended in Jun. 2024 was HK$2,036 Mil. Therefore, Zhongzhi Pharmaceutical Holdings's annualized ROA % for the quarter that ended in Jun. 2024 was 8.82%.
* 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 Zhongzhi Pharmaceutical Holdings's ROA %
For the Drug Manufacturers - Specialty & Generic subindustry, Zhongzhi Pharmaceutical Holdings'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.
Zhongzhi Pharmaceutical Holdings's ROA % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhongzhi Pharmaceutical Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Zhongzhi Pharmaceutical Holdings'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 (Jun. 2024) net income data.
ROA % is displayed in the 30-year financial page.
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 (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 2024) 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.
Zhongzhi Pharmaceutical Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Zhongzhi Pharmaceutical Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Zhongzhi Pharmaceutical Holdings Business Description
Zhongzhi Pharmaceutical Holdings Ltd is engaged in the business of manufacturing and selling pharmaceutical products. The group's operations can be divided into three segments, namely Pharmaceutical manufacturing, Operation of chain pharmacies, and Operation of online pharmacies in Zhongshan in the Guangdong province, the PRC. In the Pharmaceutical manufacturing segment, the company is engaged in the research and development, manufacturing and sale of Chinese patent medicines. In the Operation of chain pharmacies segment, the firm operates chain pharmacies in Zhongshan under the brand Zeus for the sale of pharmaceutical products. The Operation of online pharmacies segment sells medicines online. It derives a majority of its revenue from the PRC.
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