ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Mercantile Ports and Logistics's annualizedNet Income for the quarter that ended in Jun. 2023 was £-10.74 Mil.
Mercantile Ports and Logistics's average Total Assets over the quarter that ended in Jun. 2023 was £144.37 Mil. Therefore, Mercantile Ports and Logistics's annualized ROA % for the quarter that ended in Jun. 2023 was -7.44%.
The historical rank and industry rank for Mercantile Ports and Logistics's ROA % or its related term are showing as below:
LSE:MPL'
s ROA % Range Over the Past 10 Years
Min: -6.44 Med: -1.71 Max: 1.54
Current: -5.74
During the past 12 years, Mercantile Ports and Logistics's highest ROA % was 1.54%. The lowest was -6.44%. And the median was -1.71%.
LSE:MPL's ROA % is ranked worse than 90.8% of 978
companies
in the Transportation industry
Industry Median: 3.61
vs LSE:MPL: -5.74
Mercantile Ports and Logistics 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.
Competitive Comparison of Mercantile Ports and Logistics's ROA %
For the Marine Shipping subindustry, Mercantile Ports and Logistics'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.
Mercantile Ports and Logistics's ROA % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Mercantile Ports and Logistics's ROA % distribution charts can be found below:
* The bar in red indicates where Mercantile Ports and Logistics'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. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Mercantile Ports and Logistics (LSE:MPL) 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 (Jun. 2023) net income data. The Revenue data used here is two times the semi-annual (Jun. 2023) 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.
Mercantile Ports and Logistics ROA % Related Terms
Thank you for viewing the detailed overview of Mercantile Ports and Logistics's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mercantile Ports and Logistics (LSE:MPL) Business Description
Mercantile Ports and Logistics Ltd develops, owns, and operates port and logistics facilities. The site of the company's first project is at Karanja Creek in the Raigad district of Maharashtra, where it intends to develop and operate a modern and efficient port and logistics complex. At the Karanja port, the company focuses on mid-stream discharge and loading of cargo while vessels wait at anchorage for a berth in JNPT, and coastal movement of cargoes, such as containers, cement, and other break-bulk cargo, which typically ply in smaller vessels. The company has only one operating and geographic segment, being the project on hand in India. The company generates the majority of its revenue from lease income operations.
Mercantile Ports and Logistics (LSE:MPL) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LSE:MPL has been successfully added to your 