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Veeva Systems (LTS:0LO3) ROA % : 11.63% (As of Oct. 2024)


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What is Veeva Systems ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Veeva Systems's annualized Net Income for the quarter that ended in Oct. 2024 was $743 Mil. Veeva Systems's average Total Assets over the quarter that ended in Oct. 2024 was $6,392 Mil. Therefore, Veeva Systems's annualized ROA % for the quarter that ended in Oct. 2024 was 11.63%.

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

LTS:0LO3' s ROA % Range Over the Past 10 Years
Min: 8.71   Med: 11.89   Max: 15.94
Current: 11.06

During the past 13 years, Veeva Systems's highest ROA % was 15.94%. The lowest was 8.71%. And the median was 11.89%.

LTS:0LO3's ROA % is ranked better than
88.86% of 682 companies
in the Healthcare Providers & Services industry
Industry Median: 1.285 vs LTS:0LO3: 11.06

Veeva Systems ROA % Historical Data

The historical data trend for Veeva Systems'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.

Veeva Systems ROA % Chart

Veeva Systems Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.34 14.29 12.46 11.31 9.81

Veeva Systems Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 10.34 10.59 10.69 10.93 11.63

Competitive Comparison of Veeva Systems's ROA %

For the Health Information Services subindustry, Veeva Systems'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.


Veeva Systems's ROA % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Veeva Systems's ROA % distribution charts can be found below:

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



Veeva Systems ROA % Calculation

Veeva Systems's annualized ROA % for the fiscal year that ended in Jan. 2024 is calculated as:

ROA %=Net Income (A: Jan. 2024 )/( (Total Assets (A: Jan. 2023 )+Total Assets (A: Jan. 2024 ))/ count )
=525.705/( (4804.296+5910.92)/ 2 )
=525.705/5357.608
=9.81 %

Veeva Systems's annualized ROA % for the quarter that ended in Oct. 2024 is calculated as:

ROA %=Net Income (Q: Oct. 2024 )/( (Total Assets (Q: Jul. 2024 )+Total Assets (Q: Oct. 2024 ))/ count )
=743.232/( (6330.837+6452.853)/ 2 )
=743.232/6391.845
=11.63 %

* 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 four times the quarterly (Oct. 2024) net income data. ROA % is displayed in the 30-year financial page.


Veeva Systems  (LTS:0LO3) 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: Oct. 2024 )
=Net Income/Total Assets
=743.232/6391.845
=(Net Income / Revenue)*(Revenue / Total Assets)
=(743.232 / 2796.828)*(2796.828 / 6391.845)
=Net Margin %*Asset Turnover
=26.57 %*0.4376
=11.63 %

Note: The Net Income data used here is four times the quarterly (Oct. 2024) net income data. The Revenue data used here is four times the quarterly (Oct. 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.


Veeva Systems ROA % Related Terms

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Veeva Systems Business Description

Address
4280 Hacienda Drive, Pleasanton, CA, USA, 94588
Veeva is the global leading supplier of cloud-based software solutions for the life sciences industry. The company's best-of-breed offerings address operating and regulatory requirements for customers ranging from small, emerging biotechnology companies to departments of global pharmaceutical manufacturers. The company leverages its domain expertise to improve the efficiency and compliance of the underserved life sciences industry, displacing large, highly customized and dated enterprise resource planning systems that have limited flexibility. Its two main products are Veeva CRM, a customer relationship management platform for companies with a salesforce, and Veeva Vault, a content management platform that tackles various functions within any life sciences company.

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