Li Ning CoLNNGY +0.38%92 ROA % is 6.50% as of Dec. 2025, which is 29% below its 10-year median of 9.19. GuruFocus rates LNNGY with a GF Score™ of 92/100 and a GF Value™ of $66.80 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 858 Travel & Leisure companies, Li Ning Co ranks better than 82.75% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Li Ning Co's annualizedNet Income for the quarter that ended in Dec. 2025 was $340 Mil.
Li Ning Co's average Total Assets over the quarter that ended in Dec. 2025 was $5,239 Mil. Therefore, Li Ning Co's annualized ROA % for the quarter that ended in Dec. 2025 was 6.50%.
The historical rank and industry rank for Li Ning Co's ROA % or its related term are showing as below:
LNNGY'
s ROA % Range Over the Past 10 Years
Min: 7.5 Med: 9.19 Max: 18.07
Current: 8.06
During the past 13 years, Li Ning Co's highest ROA % was 18.07%. The lowest was 7.50%. And the median was 9.19%.
LNNGY's ROA % is ranked better than 82.75% of 858
companies
in the Travel & Leisure industry
Industry Median: 2.375
vs LNNGY: 8.06
Li Ning Co (OTCPK:LNNGY) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 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.
Li Ning Co ROA % Related Terms
Li Ning Co ROA % Historical Data
* Premium members only.
The historical data trend for Li Ning Co'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 Leisure subindustry, Li Ning Co'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.
Li Ning Co ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Li Ning Co's ROA % distribution charts can be found below:
* The bar in red indicates where Li Ning Co'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Li Ning Co (LNNGY) has a ROA % of 6.50% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Li Ning Co and its competitors. This is 29% below median its historical median of 9.19. Over the past decade, Li Ning Co's ROA % has ranged from 7.50 to 18.07. According to the industry distribution chart, Li Ning Co ranks #148 out of 858 companies in the Travel & Leisure industry, placing it in the top 17.2%.
Is Li Ning Co's ROA % too high?
Li Ning Co's current ROA % of 6.50% is 29% below median its 10-year median of 9.19. Over the past 10 years, this metric has ranged from a low of 7.50 to a high of 18.07. The Travel & Leisure industry median ROA % is 2.38. Li Ning Co's value of 6.50% is 173.7% above this industry median. Based on the distribution chart, Li Ning Co ranks #148 out of 858 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Li Ning Co has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Li Ning Co's ROA % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Li Ning Co ranks #148 out of 858 companies for ROA %. This places Li Ning Co in the top 17% of its industry — outperforming the majority of peers. The industry median ROA % is 2.38. Li Ning Co's value of 6.50% is 173.7% above this benchmark. Historically, Li Ning Co's own ROA % has ranged from 7.50 to 18.07 over the past decade. While the company's 10-year median is 9.19 vs. the industry median of 2.38, Li Ning Co has consistently been above 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 Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.38, based on 858 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. Li Ning Co's current ROA % of 6.50% is 173.7% 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 Li Ning Co and its competitors. For the Travel & Leisure industry, the median ROA % is 2.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Li Ning Co's current ROA % is 6.50%, which is 29% below median its own 10-year median of 9.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Li Ning Co stock overvalued right now?
Based on GuruFocus' analysis, Li Ning Co (LNNGY) is currently considered Modestly Undervalued. The stock's GF Value™ is $66.80, compared to a current price of $47.94 — trading 28.2% below its estimated fair value. The current ROA % is 6.50%, which is 29% below median its 10-year median of 9.19 and 173.7% above the Travel & Leisure industry median of 2.38. Li Ning Co's overall GF Score™ is 92/100 with 3 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 Li Ning Co (LNNGY), the current ROA % is 6.50% as of Dec. 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.
Is Li Ning Co (LNNGY) Overvalued in 2026?
Based on GuruFocus' analysis, Li Ning Co stock appears to be undervalued.
The current stock price of $47.94 is trading 28.2% below its estimated GF Value™ of $66.80.
GuruFocus considers Li Ning Co to be Modestly Undervalued.
Key valuation signals for LNNGY:
ROA %: 6.50% (29% below median its 10-year median of 9.19)
GF Value™: $66.80 vs. price of $47.94 (28.2% below fair value)
Industry Position: 173.7% above the Travel & Leisure median (#148 of 858)
No single metric tells the full story. See the LNNGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1989, Li Ning is one of the largest sportswear companies in China. Headquartered in Beijing, Li Ning mainly sells professional and leisure footwear and apparel under the Li Ning brand. Despite having a single-brand strategy, Li Ning launched multiple sub-brands (such as China Li Ning and Li Ning 1990) to appeal to different demographics. As of the end of 2024, the company had 7,585 stores in China, of which 1,297 were directly operated, and the rest franchised.
92GF Score
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