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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Morgan Group Holding Co's annualizedNet Income for the quarter that ended in Sep. 2023 was $-0.93 Mil.
Morgan Group Holding Co's average Total Assets over the quarter that ended in Sep. 2023 was $2.24 Mil. Therefore, Morgan Group Holding Co's annualized ROA % for the quarter that ended in Sep. 2023 was -41.41%.
The historical rank and industry rank for Morgan Group Holding Co's ROA % or its related term are showing as below:
MGHL's ROA % is not ranked *
in the Capital Markets industry.
Industry Median: 1.545 * Ranked among companies with meaningful ROA % only.
Morgan Group Holding Co (OTCPK:MGHL) 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. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) 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.
* 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 Capital Markets subindustry, Morgan Group Holding Co'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.
Morgan Group Holding Co ROA % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Morgan Group Holding Co's ROA % distribution charts can be found below:
* The bar in red indicates where Morgan Group Holding Co'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. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Morgan Group Holding Co (MGHL) has a ROA % of -41.41% as of Sep. 2023. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Morgan Group Holding Co and its competitors.
Is Morgan Group Holding Co's ROA % too high?
Morgan Group Holding Co's current ROA % is -41.41%. Overall, Morgan Group Holding Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Morgan Group Holding Co's ROA % compare to CCTL and VTXB?
Morgan Group Holding Co's ROA % of -41.41% can be compared against companies in the Capital Markets industry. The industry median ROA % is 1.55. 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 Capital Markets company?
The median ROA % among Capital Markets companies is 1.55, based on 818 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. 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 Morgan Group Holding Co and its competitors. For the Capital Markets industry, the median ROA % is 1.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morgan Group Holding Co's current ROA % is -41.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Group Holding Co stock overvalued right now?
Morgan Group Holding Co (MGHL) has a current ROA % of -41.41%. The current ROA % is -41.41%. Morgan Group Holding Co's overall GF Score™ is 12/100. 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 Morgan Group Holding Co (MGHL), the current ROA % is -41.41% as of Sep. 2023. 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.
Morgan Group Holding Co through its wholly own subsidiary operates in institutional research and securities brokerage business. It provides underwriting and institutional research services. The firm derives revenue from institutional research services, underwriting fees and selling concessions. The company operates in one business segment, which generates brokerage commission revenues from securities transactions executed on an agency basis on behalf of institutional clients and mutual funds, private wealth management clients, and retail customers of affiliated companies.
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