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Deliveroo (LSE:ROO) ROA % : 0.26% (As of Jun. 2024)


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What is Deliveroo ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Deliveroo's annualized Net Income for the quarter that ended in Jun. 2024 was £3 Mil. Deliveroo's average Total Assets over the quarter that ended in Jun. 2024 was £1,012 Mil. Therefore, Deliveroo's annualized ROA % for the quarter that ended in Jun. 2024 was 0.26%.

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

LSE:ROO' s ROA % Range Over the Past 10 Years
Min: -83.94   Med: -36.87   Max: 4.76
Current: 4.76

During the past 6 years, Deliveroo's highest ROA % was 4.76%. The lowest was -83.94%. And the median was -36.87%.

LSE:ROO's ROA % is ranked better than
66.31% of 1116 companies
in the Retail - Cyclical industry
Industry Median: 2.335 vs LSE:ROO: 4.76

Deliveroo ROA % Historical Data

The historical data trend for Deliveroo'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.

Deliveroo ROA % Chart

Deliveroo Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial -83.94 -43.39 -30.34 -20.12 -2.68

Deliveroo Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -20.28 -19.92 -12.58 8.87 0.26

Competitive Comparison of Deliveroo's ROA %

For the Internet Retail subindustry, Deliveroo'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.


Deliveroo's ROA % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Deliveroo's ROA % distribution charts can be found below:

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



Deliveroo ROA % Calculation

Deliveroo's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=-31.8/( (1353.9+1022)/ 2 )
=-31.8/1187.95
=-2.68 %

Deliveroo's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Jun. 2024 ))/ count )
=2.6/( (1022+1001.8)/ 2 )
=2.6/1011.9
=0.26 %

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


Deliveroo  (LSE:ROO) 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: Jun. 2024 )
=Net Income/Total Assets
=2.6/1011.9
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2.6 / 2056.4)*(2056.4 / 1011.9)
=Net Margin %*Asset Turnover
=0.13 %*2.0322
=0.26 %

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


Deliveroo ROA % Related Terms

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Deliveroo Business Description

Traded in Other Exchanges
Address
The River Building, 1 Cousin Lane, Level 1 Cannon Bridge House, London, GBR, EC4R 3TE
Deliveroo, is an online food delivery platform connecting consumers and local restaurants to enable quick and easy ordering and delivery. The company operates in 11 countries/regions in more than 800 towns and cities, and is headquartered in the United Kingdom, with a portfolio of over 140,000 restaurants globally. To enable delivery for the restaurants, Deliveroo has about 180,000 riders worldwide. The company generates revenue through a combination of commissions, user fees, restaurant sign-up fees and packaging sales.

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