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Teleperformance SE (LTS:0J6X) ROA % : 4.86% (As of Jun. 2024)


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What is Teleperformance SE ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Teleperformance SE's annualized Net Income for the quarter that ended in Jun. 2024 was €582 Mil. Teleperformance SE's average Total Assets over the quarter that ended in Jun. 2024 was €11,965 Mil. Therefore, Teleperformance SE's annualized ROA % for the quarter that ended in Jun. 2024 was 4.86%.

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

LTS:0J6X' s ROA % Range Over the Past 10 Years
Min: 4.66   Med: 6.25   Max: 7.46
Current: 5.71

During the past 13 years, Teleperformance SE's highest ROA % was 7.46%. The lowest was 4.66%. And the median was 6.25%.

LTS:0J6X's ROA % is ranked better than
64.55% of 1072 companies
in the Business Services industry
Industry Median: 3.465 vs LTS:0J6X: 5.71

Teleperformance SE ROA % Historical Data

The historical data trend for Teleperformance SE'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.

Teleperformance SE ROA % Chart

Teleperformance SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.26 4.66 7.25 7.46 5.83

Teleperformance SE Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 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 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 6.41 8.36 6.14 6.45 4.86

Competitive Comparison of Teleperformance SE's ROA %

For the Specialty Business Services subindustry, Teleperformance SE'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.


Teleperformance SE's ROA % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Teleperformance SE's ROA % distribution charts can be found below:

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



Teleperformance SE ROA % Calculation

Teleperformance SE'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 )
=602/( (8895+11754)/ 2 )
=602/10324.5
=5.83 %

Teleperformance SE'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 )
=582/( (11754+12175)/ 2 )
=582/11964.5
=4.86 %

* 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.


Teleperformance SE  (LTS:0J6X) 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
=582/11964.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(582 / 10152)*(10152 / 11964.5)
=Net Margin %*Asset Turnover
=5.73 %*0.8485
=4.86 %

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.


Teleperformance SE ROA % Related Terms

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Teleperformance SE Business Description

Address
21-25, Rue Balzac, Paris, FRA, 75008
Teleperformance SE provides outsourced customer experience management services, such as customer care solutions, technical support, customer acquisition services, digital solutions, analytics, visa application management, debt collection services, interpreting and translation services, and back-office services. The clients of Teleperformance's services range over various industries, from telecoms and technology firms to the public and retail sectors. The company is organized into two operating segments: Core Services & D.I.B.S (Digital Integrated Business Services) and Specialized Services. A vast majority of the company's revenue is generated by the Core Services & D.I.B.S segment.

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