ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NetEase Cloud Music's annualizedNet Income for the quarter that ended in Jun. 2024 was HK$1,744 Mil.
NetEase Cloud Music's average Total Assets over the quarter that ended in Jun. 2024 was HK$13,050 Mil. Therefore, NetEase Cloud Music's annualized ROA % for the quarter that ended in Jun. 2024 was 13.36%.
The historical rank and industry rank for NetEase Cloud Music's ROA % or its related term are showing as below:
HKSE:09899'
s ROA % Range Over the Past 10 Years
Min: -35.69 Med: -23.7 Max: 12.37
Current: 12.37
During the past 7 years, NetEase Cloud Music's highest ROA % was 12.37%. The lowest was -35.69%. And the median was -23.70%.
HKSE:09899's ROA % is ranked better than 84.41% of 590
companies
in the Interactive Media industry
Industry Median: -1.19
vs HKSE:09899: 12.37
NetEase Cloud Music ROA % Historical Data
The historical data trend for NetEase Cloud Music'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.
Competitive Comparison of NetEase Cloud Music's ROA %
For the Internet Content & Information subindustry, NetEase Cloud Music'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.
NetEase Cloud Music's ROA % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase Cloud Music's ROA % distribution charts can be found below:
* The bar in red indicates where NetEase Cloud Music'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.
NetEase Cloud Music (HKSE:09899) 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.
NetEase Cloud Music ROA % Related Terms
Thank you for viewing the detailed overview of NetEase Cloud Music's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
No. 353 Benjing Avenue, Room 1201, Block A, Hangzhou International Expo Center, Qianjiang Century City, Xiaoshan District, Zhejiang Province, Hangzhou, CHN
Cloud Music is the second-largest online music service provider in China, founded in 2013 by NetEase. NetEase currently holds approximately 58% of Cloud Music's equity stake and controls 90% of its voting power. The platform's business model is similar to its main competitor, Tencent Music, as both offer music streaming services along with social entertainment features like live streaming to engage users and drive additional revenue.
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