Otofarma SpAMIL:OTO -0.71%16 ROA % is 7.59% as of Dec. 2024, which is 10% above its 10-year median of 6.88. GuruFocus rates MIL:OTO with a GF Score™ of 16/100. The stock has 1 warning sign investors should review. Among 857 Medical Devices & Instruments companies, Otofarma SpA ranks better than 79.58% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Otofarma SpA's annualizedNet Income for the quarter that ended in Dec. 2024 was €0.70 Mil.
Otofarma SpA's average Total Assets over the quarter that ended in Dec. 2024 was €9.20 Mil. Therefore, Otofarma SpA's annualized ROA % for the quarter that ended in Dec. 2024 was 7.59%.
The historical rank and industry rank for Otofarma SpA's ROA % or its related term are showing as below:
MIL:OTO'
s ROA % Range Over the Past 10 Years
Min: 6.16 Med: 6.88 Max: 7.59
Current: 7.59
During the past 2 years, Otofarma SpA's highest ROA % was 7.59%. The lowest was 6.16%. And the median was 6.88%.
MIL:OTO's ROA % is ranked better than 79.58% of 857
companies
in the Medical Devices & Instruments industry
Industry Median: 0.54
vs MIL:OTO: 7.59
Otofarma SpA (MIL:OTO) 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 one times the annual (Dec. 2024) net income data. The Revenue data used here is one times the annual (Dec. 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.
Otofarma SpA ROA % Related Terms
Otofarma SpA ROA % Historical Data
* Premium members only.
The historical data trend for Otofarma 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.
Otofarma SpA ROA % Chart
Otofarma SpA Annual Data
Trend
Dec23
Dec24
ROA %
6.16
7.59
Otofarma SpA Semi-Annual Data
Dec23
Dec24
ROA %
6.16
7.59
MIL:OTO vs ABT, SYK, MDT: ROA % Comparison
For the Medical Devices subindustry, Otofarma 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.
Otofarma SpA ROA % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Otofarma SpA's ROA % distribution charts can be found below:
* The bar in red indicates where Otofarma SpA'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 one times the annual (Dec. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Otofarma SpA (MIL:OTO) has a ROA % of 7.59% as of Dec. 2024. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Otofarma SpA and its competitors. This is 10% above median its historical median of 6.88. Over the past decade, Otofarma SpA's ROA % has ranged from 6.16 to 7.59. According to the industry distribution chart, Otofarma SpA ranks #175 out of 857 companies in the Medical Devices & Instruments industry, placing it in the top 20.4%.
Is Otofarma SpA's ROA % too high?
Otofarma SpA's current ROA % of 7.59% is 10% above median its 10-year median of 6.88. Over the past 10 years, this metric has ranged from a low of 6.16 to a high of 7.59. The Medical Devices & Instruments industry median ROA % is 0.54. Otofarma SpA's value of 7.59% is 1305.6% above this industry median. Based on the distribution chart, Otofarma SpA ranks #175 out of 857 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Otofarma SpA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otofarma SpA's ROA % compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Otofarma SpA ranks #175 out of 857 companies for ROA %. This places Otofarma SpA in the top 20% of its industry — outperforming the majority of peers. The industry median ROA % is 0.54. Otofarma SpA's value of 7.59% is 1305.6% above this benchmark. Historically, Otofarma SpA's own ROA % has ranged from 6.16 to 7.59 over the past decade. While the company's 10-year median is 6.88 vs. the industry median of 0.54, Otofarma SpA has consistently been above the industry average. 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 Medical Devices & Instruments company?
The median ROA % among Medical Devices & Instruments companies is 0.54, based on 857 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. Otofarma SpA's current ROA % of 7.59% is 1305.6% above the industry median. 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 Otofarma SpA and its competitors. For the Medical Devices & Instruments industry, the median ROA % is 0.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otofarma SpA's current ROA % is 7.59%, which is 10% above median its own 10-year median of 6.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otofarma SpA stock overvalued right now?
Otofarma SpA (MIL:OTO) has a current ROA % of 7.59%. The current ROA % is 7.59%, which is 10% above median its 10-year median of 6.88 and 1305.6% above the Medical Devices & Instruments industry median of 0.54. Otofarma SpA's overall GF Score™ is 16/100 with 1 warning sign to review. 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 Otofarma SpA (MIL:OTO), the current ROA % is 7.59% as of Dec. 2024. 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.
Otofarma SpA is engaged in the construction and production of hearing aids, is constantly growing in the audiological field to provide adequate responses to every type of hearing aid need to its customers who require the possible personalized application of custom-made hearing aids. It provides otoacoustic medical devices and TELEMEDICINE services exclusively in affiliated pharmacies, possessing a portfolio of Instrumental IT patents.
16GF Score
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