ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tongaat Hulett's annualizedNet Income for the quarter that ended in Sep. 2021 was R-468 Mil.
Tongaat Hulett's average Total Assets over the quarter that ended in Sep. 2021 was R14,906 Mil. Therefore, Tongaat Hulett's annualized ROA % for the quarter that ended in Sep. 2021 was -3.14%.
The historical rank and industry rank for Tongaat Hulett's ROA % or its related term are showing as below:
JSE:TON's ROA % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 3.245 * Ranked among companies with meaningful ROA % only.
Tongaat Hulett (JSE:TON) 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 (Sep. 2021) net income data. The Revenue data used here is two times the semi-annual (Sep. 2021) 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.
Tongaat Hulett ROA % Related Terms
Tongaat Hulett ROA % Historical Data
* Premium members only.
The historical data trend for Tongaat Hulett'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 Confectioners subindustry, Tongaat Hulett'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.
Tongaat Hulett ROA % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Tongaat Hulett's ROA % distribution charts can be found below:
* The bar in red indicates where Tongaat Hulett'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 (Sep. 2021) net income data.
ROA % is displayed in the 30-year financial page.
Tongaat Hulett (JSE:TON) has a ROA % of -3.14% as of Sep. 2021. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tongaat Hulett and its competitors.
Is Tongaat Hulett's ROA % too high?
Tongaat Hulett's current ROA % is -3.14%. Overall, Tongaat Hulett has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Tongaat Hulett's ROA % compare to MDLZ and HSY?
Tongaat Hulett's ROA % of -3.14% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROA % is 3.25. 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 Consumer Packaged Goods company?
The median ROA % among Consumer Packaged Goods companies is 3.25, based on 1,990 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. 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 Tongaat Hulett and its competitors. For the Consumer Packaged Goods industry, the median ROA % is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongaat Hulett's current ROA % is -3.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongaat Hulett stock overvalued right now?
Tongaat Hulett (JSE:TON) has a current ROA % of -3.14%. The current ROA % is -3.14%. Tongaat Hulett's overall GF Score™ is 11/100. 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 Tongaat Hulett (JSE:TON), the current ROA % is -3.14% as of Sep. 2021. 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.
Tongaat Hulett Ltd produces sugar and glucose in Africa. It procures its raw materials both from land it owns and from private farmers. Tongaat sells its products to customers in the foodservice industry and to consumers as branded products. Raw sugar sales make up most of the company's revenue. Its biggest markets are South Africa, Zimbabwe, and Mozambique. The company also earns revenue by converting and developing land that it owns and has used for agricultural purposes. Additionally, the by-products from its manufacturing processes create renewable energy, which the company uses to supply electricity to the grid in some instances.
11GF Score
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