ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Al-Arabiya Real Estate Co KSC's annualizedNet Income for the quarter that ended in Sep. 2024 was KWD1.07 Mil.
Al-Arabiya Real Estate Co KSC's average Total Assets over the quarter that ended in Sep. 2024 was KWD110.60 Mil. Therefore, Al-Arabiya Real Estate Co KSC's annualized ROA % for the quarter that ended in Sep. 2024 was 0.97%.
The historical rank and industry rank for Al-Arabiya Real Estate Co KSC's ROA % or its related term are showing as below:
KUW:ARABREC'
s ROA % Range Over the Past 10 Years
Min: -7.44 Med: -1.43 Max: 2.12
Current: 1.8
During the past 13 years, Al-Arabiya Real Estate Co KSC's highest ROA % was 2.12%. The lowest was -7.44%. And the median was -1.43%.
KUW:ARABREC's ROA % is ranked better than 54.76% of 1808
companies
in the Real Estate industry
Industry Median: 1.39
vs KUW:ARABREC: 1.80
Al-Arabiya Real Estate Co KSC ROA % Historical 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.
Competitive Comparison of Al-Arabiya Real Estate Co KSC's ROA %
For the Real Estate Services subindustry, Al-Arabiya Real Estate Co KSC'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.
Al-Arabiya Real Estate Co KSC's ROA % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Al-Arabiya Real Estate Co KSC's ROA % distribution charts can be found below:
* The bar in red indicates where Al-Arabiya Real Estate Co KSC'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 four times the quarterly (Sep. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Al-Arabiya Real Estate Co KSC (KUW:ARABREC) 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 four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 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.
Al-Arabiya Real Estate Co KSC ROA % Related Terms
Thank you for viewing the detailed overview of Al-Arabiya Real Estate Co KSC's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Al-Arabiya Real Estate Co KSC Business Description
Al-Arabiya Real Estate Co KSC is a Kuwait based company involved in the construction, contracting, developing and managing the activities of residential buildings, hotels, and commercial centres within the private and public sector. It operates in three segments. Real estate segment involves activities related to real estate investment properties. Hotels segment, which is the key revenue generator, involves establishment, acquiring and managing hotels. Investment segment involves investing in shares and share capital of the companies. Geographically, it generates revenue from Kuwait being the highest revenue driver, United Arab Emirates, and Egypt.
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