ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Jupiter Dividend & Growth Trust's annualizedNet Income for the quarter that ended in Jun. 2017 was £1.66 Mil.
Jupiter Dividend & Growth Trust's average Total Assets over the quarter that ended in Jun. 2017 was £57.55 Mil. Therefore, Jupiter Dividend & Growth Trust's annualized ROA % for the quarter that ended in Jun. 2017 was 2.89%.
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 (Jun. 2017) net income data. The Revenue data used here is two times the semi-annual (Jun. 2017) 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.
Jupiter Dividend & Growth Trust ROA % Related Terms
Jupiter Dividend & Growth Trust 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 Asset Management subindustry, Jupiter Dividend & Growth Trust'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.
Jupiter Dividend & Growth Trust ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Jupiter Dividend & Growth Trust's ROA % distribution charts can be found below:
* The bar in red indicates where Jupiter Dividend & Growth Trust'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 (Jun. 2017) net income data.
ROA % is displayed in the 30-year financial page.
Jupiter Dividend & Growth Trust (LSE:JDT) has a ROA % of 2.89% as of Jun. 2017. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Jupiter Dividend & Growth Trust and its competitors. This is 70% above median its historical median of 1.70.
Is Jupiter Dividend & Growth Trust's ROA % too high?
Jupiter Dividend & Growth Trust's current ROA % of 2.89% is 70% above median its 10-year median of 1.70. The Asset Management industry median ROA % is 3.99. Jupiter Dividend & Growth Trust's value of 2.89% is 27.6% below this industry median.
How does Jupiter Dividend & Growth Trust's ROA % compare to competitors?
Jupiter Dividend & Growth Trust's ROA % of 2.89% can be compared against companies in the Asset Management industry. The industry median ROA % is 3.99. Jupiter Dividend & Growth Trust's value of 2.89% is 27.6% below this benchmark. While the company's 10-year median is 1.70 vs. the industry median of 3.99, Jupiter Dividend & Growth Trust 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 Asset Management company?
The median ROA % among Asset Management companies is 3.99, based on 1,631 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. Jupiter Dividend & Growth Trust's current ROA % of 2.89% is 27.6% 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 Jupiter Dividend & Growth Trust and its competitors. For the Asset Management industry, the median ROA % is 3.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jupiter Dividend & Growth Trust's current ROA % is 2.89%, which is 70% above median its own 10-year median of 1.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jupiter Dividend & Growth Trust stock overvalued right now?
Jupiter Dividend & Growth Trust (LSE:JDT) has a current ROA % of 2.89%. The current ROA % is 2.89%, which is 70% above median its 10-year median of 1.70 and 27.6% below the Asset Management industry median of 3.99. 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 Jupiter Dividend & Growth Trust (LSE:JDT), the current ROA % is 2.89% as of Jun. 2017. 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.
Jupiter Dividend & Growth Trust Business Description
Jupiter Dividend & Growth Trust PLC operates as an investment trust. The company's investment objective is to provide Ordinary Income and Common shareholders with a high and rising income together with the possibility of capital appreciation and to provide Zero Dividend Preference and Common shareholders with a predetermined level of capital growth. The Company's investment policy is to invest in a portfolio of UK listed equities, UK equity-related securities such as convertible securities, preference shares, convertible unsecured loan stock, warrants and other similar securities and UK fixed interest securities.
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