ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Software Circle's annualizedNet Income for the quarter that ended in Sep. 2025 was £-2.44 Mil.
Software Circle's average Total Assets over the quarter that ended in Sep. 2025 was £38.36 Mil. Therefore, Software Circle's annualized ROA % for the quarter that ended in Sep. 2025 was -6.35%.
The historical rank and industry rank for Software Circle's ROA % or its related term are showing as below:
LSE:SFT'
s ROA % Range Over the Past 10 Years
Min: -24.81 Med: -8.63 Max: 0.73
Current: -7.19
During the past 13 years, Software Circle's highest ROA % was 0.73%. The lowest was -24.81%. And the median was -8.63%.
LSE:SFT's ROA % is ranked worse than 85.22% of 1096
companies
in the Business Services industry
Industry Median: 3.455
vs LSE:SFT: -7.19
Software Circle (LSE:SFT) 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 (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 2025) 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.
Software Circle ROA % Related Terms
Software Circle ROA % Historical Data
* Premium members only.
The historical data trend for Software Circle'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 Specialty Business Services subindustry, Software Circle'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.
Software Circle ROA % vs Business Services Industry
For the Business Services industry and Industrials sector, Software Circle's ROA % distribution charts can be found below:
* The bar in red indicates where Software Circle'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 (Sep. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Software Circle (LSE:SFT) has a ROA % of -6.35% as of Sep. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Software Circle and its competitors. According to the industry distribution chart, Software Circle ranks #934 out of 1096 companies in the Business Services industry, placing it in the top 85.2%.
Is Software Circle's ROA % too high?
Software Circle's current ROA % is -6.35%. Based on the distribution chart, Software Circle ranks #934 out of 1096 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Software Circle has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Software Circle's ROA % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Software Circle ranks #934 out of 1096 companies for ROA %. This places Software Circle in the lower half of its industry. The industry median ROA % is 3.46. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Business Services company?
The median ROA % among Business Services companies is 3.46, based on 1,096 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. 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 Software Circle and its competitors. For the Business Services industry, the median ROA % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Software Circle's current ROA % is -6.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Software Circle stock overvalued right now?
Based on GuruFocus' analysis, Software Circle (LSE:SFT) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.12, compared to a current price of £0.16 — trading 31.3% above its estimated fair value. The current ROA % is -6.35%. Software Circle's overall GF Score™ is 39/100 with 4 warning signs to review. 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 Software Circle (LSE:SFT), the current ROA % is -6.35% as of Sep. 2025. 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.
Is Software Circle (LSE:SFT) Overvalued in 2026?
Based on GuruFocus' analysis, Software Circle stock appears to be overvalued.
The current stock price of £0.16 is trading 31.3% above its estimated GF Value™ of £0.12.
GuruFocus considers Software Circle to be Significantly Overvalued.
Key valuation signals for LSE:SFT:
ROA %: -6.35%
GF Value™: £0.12 vs. price of £0.16 (31.3% above fair value)
No single metric tells the full story. See the LSE:SFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Software Circle PLC is a UK-based company that is an acquirer of great vertical market software businesses. The company operates complex logistics, a SaaS platform, and brands that sell print and web to business customers. The segmental analysis by nature of service includes license fees, company-owned studio revenue, brand partner print, and online sales plus trade print. Some of its brands include Nettl, watermark, and Topfloor. Geographically it has its business across the region of the UK and Ireland, Europe, and others of which the UK and Ireland's region accounts for a majority of the revenue.
39GF Score
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