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MTU Aero Engines AG (MIL:1MTX) ROA % : 5.39% (As of Jun. 2024)


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What is MTU Aero Engines AG ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. MTU Aero Engines AG's annualized Net Income for the quarter that ended in Jun. 2024 was €570 Mil. MTU Aero Engines AG's average Total Assets over the quarter that ended in Jun. 2024 was €10,581 Mil. Therefore, MTU Aero Engines AG's annualized ROA % for the quarter that ended in Jun. 2024 was 5.39%.

The historical rank and industry rank for MTU Aero Engines AG's ROA % or its related term are showing as below:

MIL:1MTX' s ROA % Range Over the Past 10 Years
Min: -1.05   Med: 4.29   Max: 6.84
Current: -0.71

During the past 13 years, MTU Aero Engines AG's highest ROA % was 6.84%. The lowest was -1.05%. And the median was 4.29%.

MIL:1MTX's ROA % is ranked worse than
71.97% of 314 companies
in the Aerospace & Defense industry
Industry Median: 2.305 vs MIL:1MTX: -0.71

MTU Aero Engines AG ROA % Historical Data

The historical data trend for MTU Aero Engines AG'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.

MTU Aero Engines AG ROA % Chart

MTU Aero Engines AG 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 6.54 1.75 2.71 3.78 -1.05

MTU Aero Engines AG Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 2.81 4.74 5.51 -7.33 5.39

Competitive Comparison of MTU Aero Engines AG's ROA %

For the Aerospace & Defense subindustry, MTU Aero Engines AG'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.


MTU Aero Engines AG's ROA % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, MTU Aero Engines AG's ROA % distribution charts can be found below:

* The bar in red indicates where MTU Aero Engines AG's ROA % falls into.



MTU Aero Engines AG ROA % Calculation

MTU Aero Engines AG'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 )
=-102/( (9230+10204)/ 2 )
=-102/9717
=-1.05 %

MTU Aero Engines AG's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Jun. 2024 ))/ count )
=570/( (10204+10957)/ 2 )
=570/10580.5
=5.39 %

* 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 two times the semi-annual (Jun. 2024) net income data. ROA % is displayed in the 30-year financial page.


MTU Aero Engines AG  (MIL:1MTX) 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: Jun. 2024 )
=Net Income/Total Assets
=570/10580.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(570 / 6778)*(6778 / 10580.5)
=Net Margin %*Asset Turnover
=8.41 %*0.6406
=5.39 %

Note: The Net Income data used here is two times the semi-annual (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.


MTU Aero Engines AG ROA % Related Terms

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MTU Aero Engines AG Business Description

Address
Dachauer Strasse 665, Munich, BY, DEU, 80995
MTU Aero Engines specializes in the development and production of commercial and military aircraft engine components and spare parts. It also performs maintenance, repair, and overhaul services for aircraft engines. More than 30% of commercial aircraft have MTU technology on board. MTU is also a major assembler of aircraft engines. The commercial and military engine segment develops and manufactures engine components for new engine production and spare parts for the aftermarket. The commercial maintenance business reports MTU's MRO services.

MTU Aero Engines AG Headlines

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