ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. New Horizon Health's annualizedNet Income for the quarter that ended in Jun. 2023 was HK$275 Mil.
New Horizon Health's average Total Assets over the quarter that ended in Jun. 2023 was HK$3,448 Mil. Therefore, New Horizon Health's annualized ROA % for the quarter that ended in Jun. 2023 was 7.97%.
The historical rank and industry rank for New Horizon Health's ROA % or its related term are showing as below:
HKSE:06606's ROA % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 0.555 * Ranked among companies with meaningful ROA % only.
New Horizon Health (HKSE:06606) 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 (Jun. 2023) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
New Horizon Health ROA % Related Terms
New Horizon Health ROA % Historical Data
* Premium members only.
The historical data trend for New Horizon Health'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.
For the Medical Devices subindustry, New Horizon Health'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.
New Horizon Health ROA % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, New Horizon Health's ROA % distribution charts can be found below:
* The bar in red indicates where New Horizon Health'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. 2023) net income data.
ROA % is displayed in the 30-year financial page.
New Horizon Health (HKSE:06606) has a ROA % of 7.97% as of Jun. 2023. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on New Horizon Health and its competitors.
Is New Horizon Health's ROA % too high?
New Horizon Health's current ROA % is 7.97%. The Medical Devices & Instruments industry median ROA % is 0.56. New Horizon Health's value of 7.97% is 1336% above this industry median. Overall, New Horizon Health has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does New Horizon Health's ROA % compare to ABT and SYK?
New Horizon Health's ROA % of 7.97% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROA % is 0.56. New Horizon Health's value of 7.97% is 1336% above this benchmark. 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 Medical Devices & Instruments company?
The median ROA % among Medical Devices & Instruments companies is 0.56, based on 854 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. New Horizon Health's current ROA % of 7.97% is 1336% 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 New Horizon Health and its competitors. For the Medical Devices & Instruments industry, the median ROA % is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Horizon Health's current ROA % is 7.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Horizon Health stock overvalued right now?
New Horizon Health (HKSE:06606) has a current ROA % of 7.97%. The current ROA % is 7.97% and 1336% above the Medical Devices & Instruments industry median of 0.56. New Horizon Health's overall GF Score™ is 35/100. 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 New Horizon Health (HKSE:06606), the current ROA % is 7.97% as of Jun. 2023. 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.
New Horizon Health Ltd is engaged in early cancer screening and in-home testing in China. The company has an early detection and cancer screening-focused pipeline of five products and product candidates with an emphasis on colorectal cancer screening. The company focuses on cancer prevention and cure through screening and early detection. It generates maximum revenue from ColoClear and Pupu Tube products.
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