ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LMF Acquisition Opportunities's annualizedNet Income for the quarter that ended in Jun. 2022 was $0.73 Mil.
LMF Acquisition Opportunities's average Total Assets over the quarter that ended in Jun. 2022 was $105.96 Mil. Therefore, LMF Acquisition Opportunities's annualized ROA % for the quarter that ended in Jun. 2022 was 0.69%.
The historical rank and industry rank for LMF Acquisition Opportunities's ROA % or its related term are showing as below:
LMAOW'
s ROA % Range Over the Past 10 Years
Min: 0.14 Med: 0.14 Max: 3.7
Current: 3.7
During the past 2 years, LMF Acquisition Opportunities's highest ROA % was 3.70%. The lowest was 0.14%. And the median was 0.14%.
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 (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) 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.
LMF Acquisition Opportunities ROA % Related Terms
LMF Acquisition Opportunities 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.
For the Shell Companies subindustry, LMF Acquisition Opportunities'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.
LMF Acquisition Opportunities ROA % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, LMF Acquisition Opportunities's ROA % distribution charts can be found below:
* The bar in red indicates where LMF Acquisition Opportunities'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 (Jun. 2022) net income data.
ROA % is displayed in the 30-year financial page.
LMF Acquisition Opportunities (LMAOW) has a ROA % of 0.69% as of Jun. 2022. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on LMF Acquisition Opportunities and its competitors. This is 393% above median its historical median of 0.14. Over the past decade, LMF Acquisition Opportunities' ROA % has ranged from 0.14 to 3.70.
Is LMF Acquisition Opportunities' ROA % too high?
LMF Acquisition Opportunities' current ROA % of 0.69% is 393% above median its 10-year median of 0.14. Over the past 10 years, this metric has ranged from a low of 0.14 to a high of 3.70. The Diversified Financial Services industry median ROA % is 0.90. LMF Acquisition Opportunities' value of 0.69% is 23.3% below this industry median. Overall, LMF Acquisition Opportunities has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does LMF Acquisition Opportunities' ROA % compare to ENCP and FXCO?
LMF Acquisition Opportunities' ROA % of 0.69% can be compared against companies in the Diversified Financial Services industry. The industry median ROA % is 0.90. LMF Acquisition Opportunities' value of 0.69% is 23.3% below this benchmark. Historically, LMF Acquisition Opportunities' own ROA % has ranged from 0.14 to 3.70 over the past decade. While the company's 10-year median is 0.14 vs. the industry median of 0.90, LMF Acquisition Opportunities has consistently been below the industry average. 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 Diversified Financial Services company?
The median ROA % among Diversified Financial Services companies is 0.90, based on 565 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. LMF Acquisition Opportunities's current ROA % of 0.69% is 23.3% below 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 LMF Acquisition Opportunities and its competitors. For the Diversified Financial Services industry, the median ROA % is 0.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LMF Acquisition Opportunities's current ROA % is 0.69%, which is 393% above median its own 10-year median of 0.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LMF Acquisition Opportunities stock overvalued right now?
LMF Acquisition Opportunities (LMAOW) has a current ROA % of 0.69%. The current ROA % is 0.69%, which is 393% above median its 10-year median of 0.14 and 23.3% below the Diversified Financial Services industry median of 0.90. LMF Acquisition Opportunities' overall GF Score™ is 22/100 with 2 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 LMF Acquisition Opportunities (LMAOW), the current ROA % is 0.69% as of Jun. 2022. 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.
LMF Acquisition Opportunities Business Description
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