ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Mach Natural Resources LP's annualizedNet Income for the quarter that ended in Sep. 2024 was $269.8 Mil.
Mach Natural Resources LP's average Total Assets over the quarter that ended in Sep. 2024 was $2,280.6 Mil. Therefore, Mach Natural Resources LP's annualized ROA % for the quarter that ended in Sep. 2024 was 11.83%.
The historical rank and industry rank for Mach Natural Resources LP's ROA % or its related term are showing as below:
MNR'
s ROA % Range Over the Past 10 Years
Min: 15.18 Med: 26.34 Max: 73.14
Current: 15.18
During the past 3 years, Mach Natural Resources LP's highest ROA % was 73.14%. The lowest was 15.18%. And the median was 26.34%.
MNR's ROA % is ranked better than 92.26% of 1059
companies
in the Oil & Gas industry
Industry Median: 2.17
vs MNR: 15.18
* 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.
Competitive Comparison of Mach Natural Resources LP's ROA %
For the Oil & Gas E&P subindustry, Mach Natural Resources LP'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.
Mach Natural Resources LP's ROA % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Mach Natural Resources LP's ROA % distribution charts can be found below:
* The bar in red indicates where Mach Natural Resources LP's ROA % falls into.
Mach Natural Resources LP ROA % Calculation
Mach Natural Resources LP's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
* 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. 2024) net income data.
ROA % is displayed in the 30-year financial page.
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. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 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.
Mach Natural Resources LP ROA % Related Terms
Thank you for viewing the detailed overview of Mach Natural Resources LP's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mach Natural Resources LP is an independent upstream oil and gas company focused on the acquisition, development and production of oil, natural gas and NGL reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas and the panhandle of Texas.
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