ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. PGS Software's annualizedNet Income for the quarter that ended in Sep. 2021 was zł45.85 Mil.
PGS Software's average Total Assets over the quarter that ended in Sep. 2021 was zł102.88 Mil. Therefore, PGS Software's annualized ROA % for the quarter that ended in Sep. 2021 was 44.57%.
The historical rank and industry rank for PGS Software's ROA % or its related term are showing as below:
LTS:0RK2'
s ROA % Range Over the Past 10 Years
Min: 29.34 Med: 60.96 Max: 78.01
Current: 46.86
During the past 13 years, PGS Software's highest ROA % was 78.01%. The lowest was 29.34%. And the median was 60.96%.
LTS:0RK2's ROA % is not ranked
in the Software industry.
Industry Median: 1.65
vs LTS:0RK2: 46.86
PGS Software (LTS:0RK2) 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 four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) 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.
PGS Software ROA % Related Terms
PGS Software ROA % Historical Data
* Premium members only.
The historical data trend for PGS Software'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 Software - Application subindustry, PGS Software'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.
PGS Software ROA % vs Software Industry
For the Software industry and Technology sector, PGS Software's ROA % distribution charts can be found below:
* The bar in red indicates where PGS Software'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 four times the quarterly (Sep. 2021) net income data.
ROA % is displayed in the 30-year financial page.
PGS Software (LTS:0RK2) has a ROA % of 44.57% as of Sep. 2021. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on PGS Software and its competitors. This is 27% below median its historical median of 60.96. Over the past decade, PGS Software's ROA % has ranged from 29.34 to 78.01.
Is PGS Software's ROA % too high?
PGS Software's current ROA % of 44.57% is 27% below median its 10-year median of 60.96. Over the past 10 years, this metric has ranged from a low of 29.34 to a high of 78.01. The Software industry median ROA % is 1.65. PGS Software's value of 44.57% is 2601.2% above this industry median. Overall, PGS Software has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PGS Software's ROA % compare to CRM and INTU?
PGS Software's ROA % of 44.57% can be compared against companies in the Software industry. The industry median ROA % is 1.65. PGS Software's value of 44.57% is 2601.2% above this benchmark. Historically, PGS Software's own ROA % has ranged from 29.34 to 78.01 over the past decade. While the company's 10-year median is 60.96 vs. the industry median of 1.65, PGS Software 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 a Software company?
The median ROA % among Software companies is 1.65, based on 2,881 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. PGS Software's current ROA % of 44.57% is 2601.2% 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 PGS Software and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PGS Software's current ROA % is 44.57%, which is 27% below median its own 10-year median of 60.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PGS Software stock overvalued right now?
PGS Software (LTS:0RK2) has a current ROA % of 44.57%. The current ROA % is 44.57%, which is 27% below median its 10-year median of 60.96 and 2601.2% above the Software industry median of 1.65. PGS Software's overall GF Score™ is 4/100 with 6 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 PGS Software (LTS:0RK2), the current ROA % is 44.57% as of Sep. 2021. 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.
PGS Software SA provides software development and IT outsourcing services in Poland. It offers nearshore software outsourcing; mobile and web; application development; continuous delivery, quality analysis, and automation; and cloud services.
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