ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. KLM Royal Dutch Airlines's annualizedNet Income for the quarter that ended in Dec. 2018 was $650.74 Mil.
KLM Royal Dutch Airlines's average Total Assets over the quarter that ended in Dec. 2018 was $12,926.19 Mil. Therefore, KLM Royal Dutch Airlines's annualized ROA % for the quarter that ended in Dec. 2018 was 5.03%.
The historical rank and industry rank for KLM Royal Dutch Airlines's ROA % or its related term are showing as below:
KLMR's ROA % is not ranked *
in the Transportation industry.
Industry Median: 3.45 * Ranked among companies with meaningful ROA % only.
KLM Royal Dutch Airlines (OTCPK:KLMR) 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 one times the annual (Dec. 2018) net income data. The Revenue data used here is one times the annual (Dec. 2018) 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.
* 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 Airlines subindustry, KLM Royal Dutch Airlines'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.
KLM Royal Dutch Airlines ROA % vs Transportation Industry
For the Transportation industry and Industrials sector, KLM Royal Dutch Airlines's ROA % distribution charts can be found below:
* The bar in red indicates where KLM Royal Dutch Airlines'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 one times the annual (Dec. 2018) net income data.
ROA % is displayed in the 30-year financial page.
KLM Royal Dutch Airlines (KLMR) has a ROA % of 5.03% as of Dec. 2018. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on KLM Royal Dutch Airlines and its competitors.
Is KLM Royal Dutch Airlines' ROA % too high?
KLM Royal Dutch Airlines' current ROA % is 5.03%. The Transportation industry median ROA % is 3.45. KLM Royal Dutch Airlines' value of 5.03% is 45.8% above this industry median.
How does KLM Royal Dutch Airlines' ROA % compare to ?
KLM Royal Dutch Airlines' ROA % of 5.03% can be compared against companies in the Transportation industry. The industry median ROA % is 3.45. KLM Royal Dutch Airlines' value of 5.03% is 45.8% above this benchmark. 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 Transportation company?
The median ROA % among Transportation companies is 3.45, based on 1,015 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. KLM Royal Dutch Airlines's current ROA % of 5.03% is 45.8% above the industry median. 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 KLM Royal Dutch Airlines and its competitors. For the Transportation industry, the median ROA % is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLM Royal Dutch Airlines's current ROA % is 5.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLM Royal Dutch Airlines stock overvalued right now?
KLM Royal Dutch Airlines (KLMR) has a current ROA % of 5.03%. The current ROA % is 5.03% and 45.8% above the Transportation industry median of 3.45. 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 KLM Royal Dutch Airlines (KLMR), the current ROA % is 5.03% as of Dec. 2018. 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.
KLM Royal Dutch Airlines is engaged in network activities, which include air transport of passengers and cargo activities, aircraft maintenance, leisure, and other activities linked to air transport. Its segments are: Network, which generates maximum revenue and includes transportation of passengers on scheduled flights, ancillary passenger revenues, SkyTeam alliance partnership arrangements, block-seat sales, transportation of freight, and sale of cargo capacity to third parties; Maintenance, which provides engine services, component services, and airframe maintenance to airlines and clients internationally; Leisure, which covers charter flights and low-cost scheduled flights operated by transavia.com; and Other segment. It generates maximum revenue from Europe and North Africa.
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