ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NTT DOCOMO's annualizedNet Income for the quarter that ended in Sep. 2020 was 円784,076 Mil.
NTT DOCOMO's average Total Assets over the quarter that ended in Sep. 2020 was 円7,476,339 Mil. Therefore, NTT DOCOMO's annualized ROA % for the quarter that ended in Sep. 2020 was 10.49%.
The historical rank and industry rank for NTT DOCOMO's ROA % or its related term are showing as below:
LSE:NDCM'
s ROA % Range Over the Past 10 Years
Min: 5.6 Med: 7.44 Max: 10.57
Current: 8.26
During the past 13 years, NTT DOCOMO's highest ROA % was 10.57%. The lowest was 5.60%. And the median was 7.44%.
LSE:NDCM's ROA % is not ranked
in the Telecommunication Services industry.
Industry Median: 2.595
vs LSE:NDCM: 8.26
NTT DOCOMO ROA % Historical Data
The historical data trend for NTT DOCOMO'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 Telecom Services subindustry, NTT DOCOMO'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.
NTT DOCOMO's ROA % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NTT DOCOMO's ROA % distribution charts can be found below:
* The bar in red indicates where NTT DOCOMO's ROA % falls into.
NTT DOCOMO ROA % Calculation
NTT DOCOMO's annualized ROA % for the fiscal year that ended in Mar. 2020 is calculated as:
* 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 (Sep. 2020) net income data.
ROA % is displayed in the 30-year financial page.
NTT DOCOMO (LSE:NDCM) 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 (Sep. 2020) net income data. The Revenue data used here is four times the quarterly (Sep. 2020) 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.
NTT DOCOMO ROA % Related Terms
Thank you for viewing the detailed overview of NTT DOCOMO's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
NTT DoCoMo is Japan's largest wireless telephone operator. It has 78 million subscribers, leading to its market share of approximately 44%. The firm has been a technological leader, introducing wireless Internet access through its i-mode service in 1999, along with the ability to use a handset like a credit card. NTT DoCoMo also owns minority stakes in Philippine Long Distance Telephone, Hutchison Telecom Hong Kong Holdings, and other smaller phone companies. The firm's objective is to have the highest-quality network and customer service in Japan.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LSE:NDCM has been successfully added to your 