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MercadoLibre (MercadoLibre) ROA % : 7.50% (As of Mar. 2024)


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What is MercadoLibre ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. MercadoLibre's annualized Net Income for the quarter that ended in Mar. 2024 was $1,376 Mil. MercadoLibre's average Total Assets over the quarter that ended in Mar. 2024 was $18,354 Mil. Therefore, MercadoLibre's annualized ROA % for the quarter that ended in Mar. 2024 was 7.50%.

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

MELI' s ROA % Range Over the Past 10 Years
Min: -4.9   Med: 2.52   Max: 11.5
Current: 6.87

During the past 13 years, MercadoLibre's highest ROA % was 11.50%. The lowest was -4.90%. And the median was 2.52%.

MELI's ROA % is ranked better than
76.68% of 1119 companies
in the Retail - Cyclical industry
Industry Median: 2.17 vs MELI: 6.87

MercadoLibre ROA % Historical Data

The historical data trend for MercadoLibre'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.

MercadoLibre ROA % Chart

MercadoLibre 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 -4.90 -0.02 1.00 4.04 6.29

MercadoLibre Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 5.76 7.12 9.16 3.91 7.50

Competitive Comparison of MercadoLibre's ROA %

For the Internet Retail subindustry, MercadoLibre'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.


MercadoLibre's ROA % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's ROA % distribution charts can be found below:

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



MercadoLibre ROA % Calculation

MercadoLibre'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 )
=987/( (13736+17646)/ 2 )
=987/15691
=6.29 %

MercadoLibre's annualized ROA % for the quarter that ended in Mar. 2024 is calculated as:

ROA %=Net Income (Q: Mar. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Mar. 2024 ))/ count )
=1376/( (17646+19062)/ 2 )
=1376/18354
=7.50 %

* 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 (Mar. 2024) net income data. ROA % is displayed in the 30-year financial page.


MercadoLibre  (NAS:MELI) 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: Mar. 2024 )
=Net Income/Total Assets
=1376/18354
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1376 / 17332)*(17332 / 18354)
=Net Margin %*Asset Turnover
=7.94 %*0.9443
=7.50 %

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


MercadoLibre ROA % Related Terms

Thank you for viewing the detailed overview of MercadoLibre's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


MercadoLibre (MercadoLibre) Business Description

Address
WTC Free Zone, Dr. Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 148 million active users and 1 million active sellers as of the end of 2022 across an 18-country footprint. The company also operates a host of complementary businesses, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
Executives
De La Serna Juan Martin officer: Executive VP Corporate Affairs AV. PTE. PERON 2375, LOTE MN04, PILAR, BUENOS AIRES C1 1629
Emiliano Calemzuk director C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Petroni Merhy Andrea Mayumi director HOUSE B, 32 STANLEY VILLAGE ROAD, STANLEY K3 000000
Marcelo Melamud officer: V. P. Chief Accounting Officer TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Richard A Sanders director 80 PALL MALL, LONDON X0 SW1Y 5ES
Ariel Szarfsztejn officer: Executive VP - Commerce POSTA 4789, 6TH FLOOR, BUENOS AIRES C1 C1430CRG
Henrique Vasoncelos Dubugras director 1000 LAUREL WAY, BEVERLY HILLS CA 90210
Alejandro Nicolas Aguzin director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430DNN
Meyer Malka director 364 UNIVERSITY AVENUE, PALO ALTO CA 94301
Roberto Balls Sallouti director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1 C1430CRG
Stelleo Tolda officer: Country Manager Brazil C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE, SAN JOSE CA 95125
Daniel Rabinovich officer: VP-Chief Technology Officer ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
A Michael Spence director 121 INNOVATION DR STE 200, IRVINE CA 92612
Pedro Arnt officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG

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