ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. KangLi International Holdings's annualizedNet Income for the quarter that ended in Jun. 2024 was HK$134 Mil.
KangLi International Holdings's average Total Assets over the quarter that ended in Jun. 2024 was HK$1,975 Mil. Therefore, KangLi International Holdings's annualized ROA % for the quarter that ended in Jun. 2024 was 6.78%.
The historical rank and industry rank for KangLi International Holdings's ROA % or its related term are showing as below:
HKSE:06890'
s ROA % Range Over the Past 10 Years
Min: -1.67 Med: 3.63 Max: 7.24
Current: 7.24
During the past 10 years, KangLi International Holdings's highest ROA % was 7.24%. The lowest was -1.67%. And the median was 3.63%.
HKSE:06890's ROA % is ranked better than 82.52% of 635
companies
in the Steel industry
Industry Median: 2.37
vs HKSE:06890: 7.24
KangLi International Holdings 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 KangLi International Holdings's ROA %
For the Steel subindustry, KangLi International 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.
KangLi International Holdings's ROA % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, KangLi International Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where KangLi International 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.
KangLi International Holdings (HKSE:06890) 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. 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.
KangLi International Holdings ROA % Related Terms
Thank you for viewing the detailed overview of KangLi International Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
KangLi International Holdings Business Description
KangLi International Holdings Ltd is engaged in the production and sales of unpainted and painted galvanized steel products to midstream steel product processors, and cold-rolled steel products to home appliance manufacturers. The company has three operating segments; the Hard steel coil segment includes the manufacture and sale of cold-rolled hard steel coil, the Unpainted galvanized steel products segment includes the manufacture and sale of hot-dipped galvanized/zinc-coated steel coil and sheet; the Painted galvanized steel products segment includes the manufacture and sale of hot-dipped color coated galvanized steel coil and sheet and the Property management services. It derives a majority of its revenue from the People's Republic of China.
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