Loar HoldingsLOAR +3.07%16 ROA % is 2.06% as of Mar. 2026, which is 168% above its 10-year median of 0.77. GuruFocus rates LOAR with a GF Score™ of 16/100. The stock has 3 warning signs investors should review. Among 356 Aerospace & Defense companies, Loar Holdings ranks better than 59.83% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Loar Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $44.6 Mil.
Loar Holdings's average Total Assets over the quarter that ended in Mar. 2026 was $2,164.1 Mil. Therefore, Loar Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 2.06%.
The historical rank and industry rank for Loar Holdings's ROA % or its related term are showing as below:
LOAR'
s ROA % Range Over the Past 10 Years
Min: -0.45 Med: 0.77 Max: 4.15
Current: 3.84
During the past 4 years, Loar Holdings's highest ROA % was 4.15%. The lowest was -0.45%. And the median was 0.77%.
LOAR's ROA % is ranked better than 59.83% of 356
companies
in the Aerospace & Defense industry
Industry Median: 2.5
vs LOAR: 3.84
Loar Holdings (NYSE:LOAR) 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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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.
Loar Holdings ROA % Related Terms
Loar Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Loar Holdings'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 Aerospace & Defense subindustry, Loar Holdings'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.
Loar Holdings ROA % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Loar Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Loar Holdings'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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Loar Holdings (LOAR) has a ROA % of 2.06% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Loar Holdings and its competitors. This is 168% above median its historical median of 0.77. According to the industry distribution chart, Loar Holdings ranks #143 out of 356 companies in the Aerospace & Defense industry, placing it in the top 40.2%.
Is Loar Holdings' ROA % too high?
Loar Holdings' current ROA % of 2.06% is 168% above median its 10-year median of 0.77. The Aerospace & Defense industry median ROA % is 2.50. Loar Holdings' value of 2.06% is 17.6% below this industry median. Based on the distribution chart, Loar Holdings ranks #143 out of 356 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Loar Holdings has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Loar Holdings' ROA % compare to MRCY and HXL?
According to the Aerospace & Defense industry distribution chart, Loar Holdings ranks #143 out of 356 companies for ROA %. This puts Loar Holdings in the upper half of its industry. The industry median ROA % is 2.50. Loar Holdings' value of 2.06% is 17.6% below this benchmark. While the company's 10-year median is 0.77 vs. the industry median of 2.50, Loar Holdings 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 an Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.50, based on 356 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. Loar Holdings's current ROA % of 2.06% is 17.6% 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 Loar Holdings and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Loar Holdings's current ROA % is 2.06%, which is 168% above median its own 10-year median of 0.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Loar Holdings stock overvalued right now?
Loar Holdings (LOAR) has a current ROA % of 2.06%. The current ROA % is 2.06%, which is 168% above median its 10-year median of 0.77 and 17.6% below the Aerospace & Defense industry median of 2.50. Loar Holdings' overall GF Score™ is 16/100 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 Loar Holdings (LOAR), the current ROA % is 2.06% as of Mar. 2026. 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.
Loar Holdings Inc in the design, manufacture, and sale of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Its manufactured products includes auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions and motion and actuation devices, among others. Its operations are organized and managed as one segment designed to offer its customers aerospace-related parts and supplies.
16GF Score
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