HiWave Technologies (LSE:HIW) ROA % : -89.85% (As of Sep. 2012)

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What is HiWave Technologies ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. HiWave Technologies's annualized Net Income for the quarter that ended in Sep. 2012 was £-2.82 Mil. HiWave Technologies's average Total Assets over the quarter that ended in Sep. 2012 was £3.14 Mil. Therefore, HiWave Technologies's annualized ROA % for the quarter that ended in Sep. 2012 was -89.85%.

The historical rank and industry rank for HiWave Technologies's ROA % or its related term are showing as below:

LSE:HIW' s ROA % Range Over the Past 10 Years
Min: -161 Med: -49.7 Max: -26.3
Current: -142.9

During the past 13 years, HiWave Technologies's highest ROA % was -26.30%. The lowest was -161.00%. And the median was -49.70%.

LSE:HIW's ROA % is not ranked
in the Hardware industry.
Industry Median: 2.25 vs LSE:HIW: -142.90

HiWave Technologies ROA % Historical Data

The historical data trend for HiWave Technologies'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.

* Premium members only.

HiWave Technologies ROA % Chart

HiWave Technologies Annual Data

Trend

Jun03

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Sep11

Sep12

ROA %

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-81.18

-26.12

-86.00

-104.68

-82.97

HiWave Technologies Semi-Annual Data
	Dec02	Jun03	Dec03	Jun04	Dec04	Jun05	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Mar12	Sep12
ROA %	Get a 7-Day Free Trial															-106.54	-81.59	-44.91	-67.90	-89.85

Competitive Comparison of HiWave Technologies's ROA %

For the Electronic Components subindustry, HiWave Technologies'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.

HiWave Technologies's ROA % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, HiWave Technologies's ROA % distribution charts can be found below:

* The bar in red indicates where HiWave Technologies's ROA % falls into.

HiWave Technologies ROA % Calculation

HiWave Technologies's annualized ROA % for the fiscal year that ended in Sep. 2012 is calculated as:

ROA %	=	Net Income (A: Sep. 2012 )	/	( (Total Assets (A: Sep. 2011 )	+	Total Assets (A: Sep. 2012 ))	/ count )
	=	-3.07	/	( (5.252	+	2.148)	/ 2 )
	=	-3.07	/	3.7
	=	-82.97 %

HiWave Technologies's annualized ROA % for the quarter that ended in Sep. 2012 is calculated as:

ROA %	=	Net Income (Q: Sep. 2012 )	/	( (Total Assets (Q: Mar. 2012 )	+	Total Assets (Q: Sep. 2012 ))	/ count )
	=	-2.824	/	( (4.138	+	2.148)	/ 2 )
	=	-2.824	/	3.143
	=	-89.85 %

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. 2012) net income data. ROA % is displayed in the 30-year financial page.

HiWave Technologies (LSE:HIW) 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:

	ROA %		(Q: Sep. 2012 )
=	Net Income	/	Total Assets
=	-2.824	/	3.143
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-2.824 / 1.262)	*	(1.262 / 3.143)
=	Net Margin %	*	Asset Turnover
=	-223.77 %	*	0.4015
=	-89.85 %

Note: The Net Income data used here is two times the semi-annual (Sep. 2012) net income data. The Revenue data used here is two times the semi-annual (Sep. 2012) revenue data.

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.

HiWave Technologies ROA % Related Terms

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