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HOVVB (Hovnanian Enterprises) ROA % : 12.01% (As of Jul. 2024)


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What is Hovnanian Enterprises ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hovnanian Enterprises's annualized Net Income for the quarter that ended in Jul. 2024 was $292 Mil. Hovnanian Enterprises's average Total Assets over the quarter that ended in Jul. 2024 was $2,429 Mil. Therefore, Hovnanian Enterprises's annualized ROA % for the quarter that ended in Jul. 2024 was 12.01%.

The historical rank and industry rank for Hovnanian Enterprises's ROA % or its related term are showing as below:

HOVVB' s ROA % Range Over the Past 10 Years
Min: -15.61   Med: 1.5   Max: 29.31
Current: 9.84

During the past 13 years, Hovnanian Enterprises's highest ROA % was 29.31%. The lowest was -15.61%. And the median was 1.50%.

HOVVB's ROA % is ranked better than
78.12% of 96 companies
in the Homebuilding & Construction industry
Industry Median: 4.075 vs HOVVB: 9.84

Hovnanian Enterprises ROA % Historical Data

The historical data trend for Hovnanian Enterprises'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.

* Premium members only.

Hovnanian Enterprises ROA % Chart

Hovnanian Enterprises Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.75 29.31 9.24 8.15 9.49

Hovnanian Enterprises Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.92 3.96 8.73 12.01 14.67

Competitive Comparison of Hovnanian Enterprises's ROA %

For the Residential Construction subindustry, Hovnanian Enterprises'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.


Hovnanian Enterprises's ROA % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's ROA % distribution charts can be found below:

* The bar in red indicates where Hovnanian Enterprises's ROA % falls into.



Hovnanian Enterprises ROA % Calculation

Hovnanian Enterprises's annualized ROA % for the fiscal year that ended in Oct. 2023 is calculated as:

ROA %=Net Income (A: Oct. 2023 )/( (Total Assets (A: Oct. 2022 )+Total Assets (A: Oct. 2023 ))/ count )
=205.891/( (2562.03+2492.94)/ 2 )
=205.891/2527.485
=8.15 %

Hovnanian Enterprises's annualized ROA % for the quarter that ended in Jul. 2024 is calculated as:

ROA %=Net Income (Q: Jul. 2024 )/( (Total Assets (Q: Apr. 2024 )+Total Assets (Q: Jul. 2024 ))/ count )
=291.676/( (2317.646+2540.505)/ 2 )
=291.676/2429.0755
=12.01 %

* 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 four times the quarterly (Jul. 2024) net income data. ROA % is displayed in the 30-year financial page.


Hovnanian Enterprises  (OTCPK:HOVVB) 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 bank’s 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:

ROA %(Q: Jul. 2024 )
=Net Income/Total Assets
=291.676/2429.0755
=(Net Income / Revenue)*(Revenue / Total Assets)
=(291.676 / 2890.816)*(2890.816 / 2429.0755)
=Net Margin %*Asset Turnover
=10.09 %*1.1901
=12.01 %

Note: The Net Income data used here is four times the quarterly (Jul. 2024) net income data. The Revenue data used here is four times the quarterly (Jul. 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.


Hovnanian Enterprises ROA % Related Terms

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Hovnanian Enterprises Business Description

Traded in Other Exchanges
Address
90 Matawan Road, Fifth Floor, Matawan, NJ, USA, 07747
Hovnanian Enterprises Inc conducts all of its homebuilding and financial services operations . The company designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes in planned residential developments. It has two distinct operations: homebuilding and financial services. Its homebuilding operations are divided geographically into three segments; Northeast which includes Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia and West Virginia; Southeast which includes Florida, Georgia and South Carolina; and West which includes Arizona, California and Texas. The firm generates maximum revenue from West Segment.