GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Danieli & C. Officine Meccaniche SpA (MIL:DANR) » Definitions » ROA %

Danieli & C. Officine Meccaniche SpA (MIL:DANR) ROA % : 3.86% (As of Jun. 2024)


View and export this data going back to 2008. Start your Free Trial

What is Danieli & C. Officine Meccaniche SpA ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Danieli & C. Officine Meccaniche SpA's annualized Net Income for the quarter that ended in Jun. 2024 was €284 Mil. Danieli & C. Officine Meccaniche SpA's average Total Assets over the quarter that ended in Jun. 2024 was €7,349 Mil. Therefore, Danieli & C. Officine Meccaniche SpA's annualized ROA % for the quarter that ended in Jun. 2024 was 3.86%.

The historical rank and industry rank for Danieli & C. Officine Meccaniche SpA's ROA % or its related term are showing as below:

MIL:DANR' s ROA % Range Over the Past 10 Years
Min: 1   Med: 1.6   Max: 3.83
Current: 3.4

During the past 13 years, Danieli & C. Officine Meccaniche SpA's highest ROA % was 3.83%. The lowest was 1.00%. And the median was 1.60%.

MIL:DANR's ROA % is ranked better than
50.81% of 3013 companies
in the Industrial Products industry
Industry Median: 3.31 vs MIL:DANR: 3.40

Danieli & C. Officine Meccaniche SpA ROA % Historical Data

The historical data trend for Danieli & C. Officine Meccaniche SpA'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.

Danieli & C. Officine Meccaniche SpA ROA % Chart

Danieli & C. Officine Meccaniche SpA Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.24 1.52 3.76 3.83 3.43

Danieli & C. Officine Meccaniche SpA 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 5.36 2.38 5.29 2.87 3.86

Competitive Comparison of Danieli & C. Officine Meccaniche SpA's ROA %

For the Specialty Industrial Machinery subindustry, Danieli & C. Officine Meccaniche SpA'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.


Danieli & C. Officine Meccaniche SpA's ROA % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Danieli & C. Officine Meccaniche SpA's ROA % distribution charts can be found below:

* The bar in red indicates where Danieli & C. Officine Meccaniche SpA's ROA % falls into.



Danieli & C. Officine Meccaniche SpA ROA % Calculation

Danieli & C. Officine Meccaniche SpA's annualized ROA % for the fiscal year that ended in Jun. 2024 is calculated as:

ROA %=Net Income (A: Jun. 2024 )/( (Total Assets (A: Jun. 2023 )+Total Assets (A: Jun. 2024 ))/ count )
=240.812/( (6540.936+7493.775)/ 2 )
=240.812/7017.3555
=3.43 %

Danieli & C. Officine Meccaniche SpA'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 )
=284.046/( (7205.149+7493.775)/ 2 )
=284.046/7349.462
=3.86 %

* 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.


Danieli & C. Officine Meccaniche SpA  (MIL:DANR) 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
=284.046/7349.462
=(Net Income / Revenue)*(Revenue / Total Assets)
=(284.046 / 4554.332)*(4554.332 / 7349.462)
=Net Margin %*Asset Turnover
=6.24 %*0.6197
=3.86 %

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.


Danieli & C. Officine Meccaniche SpA ROA % Related Terms

Thank you for viewing the detailed overview of Danieli & C. Officine Meccaniche SpA's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Danieli & C. Officine Meccaniche SpA Business Description

Traded in Other Exchanges
Address
Via Nazionale 41, Buttrio, Udine, ITA, 33042
Danieli & C. Officine Meccaniche SpA is an Italy-based company that is engaged in manufacturing and distribution of steel and other nonferrous metal products as well as plant building. The company operates through two segments, namely steelmaking and plant making. The Steelmaking segment manufactures ingots, forged bars, blooms, rolled bars, bar in coils and others. End customers primarily come from the mechanical, automotive, oil & gas, power generation and other sectors. The Plant Making segment designs and builds mines, pellet production plants, furnaces, rolling mills and other various plants and facilities. The company has a global presence, with Europe, Middle East and Far East being the three largest markets for the company.

Danieli & C. Officine Meccaniche SpA Headlines

No Headlines