ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lianhe Sowell International Group's annualizedNet Income for the quarter that ended in Sep. 2025 was $-1.47 Mil.
Lianhe Sowell International Group's average Total Assets over the quarter that ended in Sep. 2025 was $34.98 Mil. Therefore, Lianhe Sowell International Group's annualized ROA % for the quarter that ended in Sep. 2025 was -4.19%.
LHSW'
s ROA % Range Over the Past 10 Years
Min: -14.72 Med: 16.21 Max: 27.07
Current: 3.76
During the past 4 years, Lianhe Sowell International Group's highest ROA % was 27.07%. The lowest was -14.72%. And the median was 16.21%.
LHSW's ROA % is ranked better than 59.79% of 2885
companies
in the Software industry
Industry Median: 1.68
vs LHSW: 3.76
Lianhe Sowell International Group (NAS:LHSW) 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. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 2025) 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.
Lianhe Sowell International Group ROA % Related Terms
Lianhe Sowell International Group 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.
Lianhe Sowell International Group ROA % Chart
Lianhe Sowell International Group Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
ROA %
-14.72
27.07
19.87
12.54
Lianhe Sowell International Group Semi-Annual Data
For the Software - Infrastructure subindustry, Lianhe Sowell International Group'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.
Lianhe Sowell International Group ROA % vs Software Industry
* 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. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Lianhe Sowell International Group (LHSW) has a ROA % of -4.19% as of Sep. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Lianhe Sowell International Group and its competitors. According to the industry distribution chart, Lianhe Sowell International Group ranks #1160 out of 2885 companies in the Software industry, placing it in the top 40.2%.
Is Lianhe Sowell International Group's ROA % too high?
Lianhe Sowell International Group's current ROA % is -4.19%. Based on the distribution chart, Lianhe Sowell International Group ranks #1160 out of 2885 companies in the Software industry, which is above the industry midpoint. Overall, Lianhe Sowell International Group has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Lianhe Sowell International Group's ROA % compare to SDCH and DTSS?
According to the Software industry distribution chart, Lianhe Sowell International Group ranks #1160 out of 2885 companies for ROA %. This puts Lianhe Sowell International Group in the upper half of its industry. The industry median ROA % is 1.68. 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 Software company?
The median ROA % among Software companies is 1.68, based on 2,885 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 Lianhe Sowell International Group and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lianhe Sowell International Group's current ROA % is -4.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianhe Sowell International Group stock overvalued right now?
Lianhe Sowell International Group (LHSW) has a current ROA % of -4.19%. The current ROA % is -4.19%. Lianhe Sowell International Group's overall GF Score™ is 20/100 with 5 warning signs to review. 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 Lianhe Sowell International Group (LHSW), the current ROA % is -4.19% as of Sep. 2025. 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.
Lianhe Sowell International Group Business Description
Lianhe Sowell International Group Ltd is a holding company and operates its business through its subsidiary. It is a provider of machine vision products and solutions in China that invent and integrate technologies and solutions that address some of the critical manufacturing and distribution challenges, such as precision and accuracy required in manufacturing of electronic products. The company categorize machine vision products in four categories based on their application settings: Industrial Machine Vision, Artificial Intelligence (Face Recognition and AI Behavior Analysis), Intelligent Weak Current (Building Intelligence and Intelligent Transportation) and Electronic Customs Clearance.
20GF Score
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