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LWP Capital (LWP Capital) ROA % : -16.38% (As of Sep. 2015)


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What is LWP Capital ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LWP Capital's annualized Net Income for the quarter that ended in Sep. 2015 was $-33.8 Mil. LWP Capital's average Total Assets over the quarter that ended in Sep. 2015 was $206.2 Mil. Therefore, LWP Capital's annualized ROA % for the quarter that ended in Sep. 2015 was -16.38%.

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

LXWKF's ROA % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 3.005
* Ranked among companies with meaningful ROA % only.

LWP Capital ROA % Historical Data

The historical data trend for LWP Capital'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.

LWP Capital ROA % Chart

LWP Capital Annual Data
Trend Dec11 Dec12 Dec13 Dec14
ROA %
-0.25 -4.64 -7.11 -6.45

LWP Capital Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 -11.19 -11.50 -10.21 -50.76 -16.38

Competitive Comparison of LWP Capital's ROA %

For the Farm Products subindustry, LWP Capital'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.


LWP Capital's ROA % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, LWP Capital's ROA % distribution charts can be found below:

* The bar in red indicates where LWP Capital's ROA % falls into.



LWP Capital ROA % Calculation

LWP Capital's annualized ROA % for the fiscal year that ended in Dec. 2014 is calculated as:

ROA %=Net Income (A: Dec. 2014 )/( (Total Assets (A: Dec. 2013 )+Total Assets (A: Dec. 2014 ))/ count )
=-19.51/( (325.782+278.958)/ 2 )
=-19.51/302.37
=-6.45 %

LWP Capital's annualized ROA % for the quarter that ended in Sep. 2015 is calculated as:

ROA %=Net Income (Q: Sep. 2015 )/( (Total Assets (Q: Jun. 2015 )+Total Assets (Q: Sep. 2015 ))/ count )
=-33.768/( (212.184+200.197)/ 2 )
=-33.768/206.1905
=-16.38 %

* 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. 2015) net income data. ROA % is displayed in the 30-year financial page.


LWP Capital  (OTCPK:LXWKF) 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: Sep. 2015 )
=Net Income/Total Assets
=-33.768/206.1905
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-33.768 / 0)*(0 / 206.1905)
=Net Margin %*Asset Turnover
=N/A %*0
=-16.38 %

Note: The Net Income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) 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.


LWP Capital ROA % Related Terms

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LWP Capital (LWP Capital) Business Description

Traded in Other Exchanges
N/A
Address
Legumex Walker Inc is a processor and merchandiser of pulses (lentils, peas, beans and chickpeas) and other special crops with processing facilities in the Canadian Prairies, American Midwest and China.

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