HVCW (Harrison Vickers and Waterman) ROA % : -324.96% (As of Jun. 2019)

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What is Harrison Vickers and Waterman ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Harrison Vickers and Waterman's annualized Net Income for the quarter that ended in Jun. 2019 was $-9.51 Mil. Harrison Vickers and Waterman's average Total Assets over the quarter that ended in Jun. 2019 was $2.93 Mil. Therefore, Harrison Vickers and Waterman's annualized ROA % for the quarter that ended in Jun. 2019 was -324.96%.

The historical rank and industry rank for Harrison Vickers and Waterman's ROA % or its related term are showing as below:

HVCW's ROA % is not ranked ^*
in the Beverages - Alcoholic industry.
Industry Median: 3.6
* Ranked among companies with meaningful ROA % only.

Harrison Vickers and Waterman ROA % Historical Data

The historical data trend for Harrison Vickers and Waterman'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.

Harrison Vickers and Waterman ROA % Chart

Harrison Vickers and Waterman Annual Data

Trend

Jun13

Jun14

Jun15

Jun19

ROA %

-166.67

-76.58

-174.95

-324.96

Harrison Vickers and Waterman Semi-Annual Data
	Jun13	Jun14	Jun15	Jun19
ROA %	-166.67	-76.58	-174.95	-324.96

Competitive Comparison of Harrison Vickers and Waterman's ROA %

For the Beverages - Brewers subindustry, Harrison Vickers and Waterman'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.

Harrison Vickers and Waterman's ROA % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Harrison Vickers and Waterman's ROA % distribution charts can be found below:

* The bar in red indicates where Harrison Vickers and Waterman's ROA % falls into.

Harrison Vickers and Waterman ROA % Calculation

Harrison Vickers and Waterman's annualized ROA % for the fiscal year that ended in Jun. 2019 is calculated as:

ROA %	=	Net Income (A: Jun. 2019 )	/	( (Total Assets (A: Jun. 2015 )	+	Total Assets (A: Jun. 2019 ))	/ count )
	=	-9.505	/	( (2.594	+	3.256)	/ 2 )
	=	-9.505	/	2.925
	=	-324.96 %

Harrison Vickers and Waterman's annualized ROA % for the quarter that ended in Jun. 2019 is calculated as:

ROA %	=	Net Income (Q: Jun. 2019 )	/	( (Total Assets (Q: Jun. 2015 )	+	Total Assets (Q: Jun. 2019 ))	/ count )
	=	-9.505	/	( (2.594	+	3.256)	/ 2 )
	=	-9.505	/	2.925
	=	-324.96 %

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 one times the annual (Jun. 2019) net income data. ROA % is displayed in the 30-year financial page.

Harrison Vickers and Waterman (OTCPK:HVCW) 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:

	ROA %		(Q: Jun. 2019 )
=	Net Income	/	Total Assets
=	-9.505	/	2.925
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-9.505 / 4.258)	*	(4.258 / 2.925)
=	Net Margin %	*	Asset Turnover
=	-223.23 %	*	1.4557
=	-324.96 %

Note: The Net Income data used here is one times the annual (Jun. 2019) net income data. The Revenue data used here is one times the annual (Jun. 2019) revenue data.

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.

Harrison Vickers and Waterman ROA % Related Terms

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