ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ultimate Products's annualizedNet Income for the quarter that ended in Jul. 2024 was £6.8 Mil.
Ultimate Products's average Total Assets over the quarter that ended in Jul. 2024 was £111.1 Mil. Therefore, Ultimate Products's annualized ROA % for the quarter that ended in Jul. 2024 was 6.15%.
The historical rank and industry rank for Ultimate Products's ROA % or its related term are showing as below:
LSE:ULTP'
s ROA % Range Over the Past 10 Years
Min: 9.32 Med: 13.63 Max: 20.9
Current: 9.52
During the past 11 years, Ultimate Products's highest ROA % was 20.90%. The lowest was 9.32%. And the median was 13.63%.
LSE:ULTP's ROA % is ranked better than 87.27% of 432
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 2.95
vs LSE:ULTP: 9.52
Ultimate Products ROA % Historical Data
The historical data trend for Ultimate Products'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.
Competitive Comparison of Ultimate Products's ROA %
For the Furnishings, Fixtures & Appliances subindustry, Ultimate Products'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.
Ultimate Products's ROA % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Ultimate Products's ROA % distribution charts can be found below:
* The bar in red indicates where Ultimate Products's ROA % falls into.
Ultimate Products ROA % Calculation
Ultimate Products's annualized ROA % for the fiscal year that ended in Jul. 2024 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 two times the semi-annual (Jul. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Ultimate Products (LSE:ULTP) 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 (Jul. 2024) net income data. The Revenue data used here is two times the semi-annual (Jul. 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.
Ultimate Products ROA % Related Terms
Thank you for viewing the detailed overview of Ultimate Products's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ultimate Products PLC designs, develops and distributes homeware products across its key brands, including the household names Salter and Beldray. Its other brands include Progress, Kleenez, Petra, Maxim, Russell Hobbs, and Intempo among others. The company sells products across different categories, such as small domestic appliances, housewares, laundry, audio, and heating and cooling. Its products are sold to a broad cross-section of both large national and international multi-channel retailers as well as smaller national retail chains, incorporating discount retailers, supermarkets, general retailers, and online retailers. Geographically, the company derives its key revenue from the United Kingdom and the rest from Germany, Rest of Europe, and the Rest of the world.
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