Scottish Mortgage Investment TrustLSE:SMT +0.61%34 ROA % is 5.70% as of Mar. 2026, which is 51% below its 10-year median of 11.57. GuruFocus rates LSE:SMT with a GF Score™ of 34/100. The stock has 4 warning signs investors should review. Among 1,632 Asset Management companies, Scottish Mortgage Investment Trust ranks better than 89.77% on this metric.
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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) 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.
Scottish Mortgage Investment Trust ROA % Related Terms
Scottish Mortgage Investment Trust 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.
For the Asset Management subindustry, Scottish Mortgage Investment Trust'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.
Scottish Mortgage Investment Trust ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Scottish Mortgage Investment Trust's ROA % distribution charts can be found below:
* The bar in red indicates where Scottish Mortgage Investment Trust'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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Scottish Mortgage Investment Trust (LSE:SMT) has a ROA % of 5.70% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Scottish Mortgage Investment Trust and its competitors. This is 51% below median its historical median of 11.57. According to the industry distribution chart, Scottish Mortgage Investment Trust ranks #167 out of 1632 companies in the Asset Management industry, placing it in the top 10.2%.
Is Scottish Mortgage Investment Trust's ROA % too high?
Scottish Mortgage Investment Trust's current ROA % of 5.70% is 51% below median its 10-year median of 11.57. The Asset Management industry median ROA % is 3.99. Scottish Mortgage Investment Trust's value of 5.70% is 42.9% above this industry median. Based on the distribution chart, Scottish Mortgage Investment Trust ranks #167 out of 1632 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Scottish Mortgage Investment Trust has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Scottish Mortgage Investment Trust's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Scottish Mortgage Investment Trust ranks #167 out of 1632 companies for ROA %. This places Scottish Mortgage Investment Trust in the top 10% of its industry — outperforming the majority of peers. The industry median ROA % is 3.99. Scottish Mortgage Investment Trust's value of 5.70% is 42.9% above this benchmark. While the company's 10-year median is 11.57 vs. the industry median of 3.99, Scottish Mortgage Investment Trust has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Asset Management company?
The median ROA % among Asset Management companies is 3.99, based on 1,632 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. Scottish Mortgage Investment Trust's current ROA % of 5.70% is 42.9% above the industry median. 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 Scottish Mortgage Investment Trust and its competitors. For the Asset Management industry, the median ROA % is 3.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Scottish Mortgage Investment Trust's current ROA % is 5.70%, which is 51% below median its own 10-year median of 11.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scottish Mortgage Investment Trust stock overvalued right now?
Scottish Mortgage Investment Trust (LSE:SMT) has a current ROA % of 5.70%. The current ROA % is 5.70%, which is 51% below median its 10-year median of 11.57 and 42.9% above the Asset Management industry median of 3.99. Scottish Mortgage Investment Trust's overall GF Score™ is 34/100 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 Scottish Mortgage Investment Trust (LSE:SMT), the current ROA % is 5.70% as of Mar. 2026. 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.
Scottish Mortgage Investment Trust Business Description
Scottish Mortgage Investment Trust PLC is an investment trust company. The company's objective is to maximize total return from a portfolio of long-term investments chosen on a global basis enabling the company to provide capital and dividend growth. The company focuses on investment in quoted securities irrespective of any geographical, industry, and sector exposure. The portfolio also invests in fixed-income securities, convertible securities, funds, unquoted entities, and other assets.
34GF Score
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