GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PZ Cussons PLC (LSE:PZC) » Definitions » ROA %

PZ Cussons (LSE:PZC) ROA % : -3.25% (As of May. 2024)


View and export this data going back to 1953. Start your Free Trial

What is PZ Cussons ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. PZ Cussons's annualized Net Income for the quarter that ended in May. 2024 was £-23.2 Mil. PZ Cussons's average Total Assets over the quarter that ended in May. 2024 was £713.4 Mil. Therefore, PZ Cussons's annualized ROA % for the quarter that ended in May. 2024 was -3.25%.

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

LSE:PZC' s ROA % Range Over the Past 10 Years
Min: -7.08   Med: 3.77   Max: 5.99
Current: -7.08

During the past 13 years, PZ Cussons's highest ROA % was 5.99%. The lowest was -7.08%. And the median was 3.77%.

LSE:PZC's ROA % is ranked worse than
86.15% of 1920 companies
in the Consumer Packaged Goods industry
Industry Median: 3.315 vs LSE:PZC: -7.08

PZ Cussons ROA % Historical Data

The historical data trend for PZ Cussons'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.

PZ Cussons ROA % Chart

PZ Cussons Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.61 -1.15 5.55 3.77 -6.96

PZ Cussons Semi-Annual Data
Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.95 5.16 2.38 -10.29 -3.25

Competitive Comparison of PZ Cussons's ROA %

For the Household & Personal Products subindustry, PZ Cussons'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.


PZ Cussons's ROA % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, PZ Cussons's ROA % distribution charts can be found below:

* The bar in red indicates where PZ Cussons's ROA % falls into.



PZ Cussons ROA % Calculation

PZ Cussons's annualized ROA % for the fiscal year that ended in May. 2024 is calculated as:

ROA %=Net Income (A: May. 2024 )/( (Total Assets (A: May. 2023 )+Total Assets (A: May. 2024 ))/ count )
=-57/( (988.4+649.6)/ 2 )
=-57/819
=-6.96 %

PZ Cussons's annualized ROA % for the quarter that ended in May. 2024 is calculated as:

ROA %=Net Income (Q: May. 2024 )/( (Total Assets (Q: Nov. 2023 )+Total Assets (Q: May. 2024 ))/ count )
=-23.2/( (777.1+649.6)/ 2 )
=-23.2/713.35
=-3.25 %

* 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 (May. 2024) net income data. ROA % is displayed in the 30-year financial page.


PZ Cussons  (LSE:PZC) 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 bank’s 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: May. 2024 )
=Net Income/Total Assets
=-23.2/713.35
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-23.2 / 501.6)*(501.6 / 713.35)
=Net Margin %*Asset Turnover
=-4.63 %*0.7032
=-3.25 %

Note: The Net Income data used here is two times the semi-annual (May. 2024) net income data. The Revenue data used here is two times the semi-annual (May. 2024) 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.


PZ Cussons ROA % Related Terms

Thank you for viewing the detailed overview of PZ Cussons's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


PZ Cussons Business Description

Traded in Other Exchanges
Address
3500 Aviator Way, Manchester Business Park, Manchester, GBR, M22 5TG
PZ Cussons PLC is a household and personal-care company. Its main business categories are personal care and beauty, home care, food and nutrition, and electricals. The principal activities of the Group are the manufacture and distribution of soaps, detergents, toiletries, beauty products, pharmaceuticals, electrical goods, edible oils, fats and spreads, and nutritional products. The geographical segments of the company are Europe and the Americas, Asia Pacific, Africa, and the Central regions. The company derives its maximum revenue from Europe and the Americas.

PZ Cussons Headlines