ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Oman Cement's annualizedNet Income for the quarter that ended in Sep. 2022 was ر.ع5.86 Mil.
Oman Cement's average Total Assets over the quarter that ended in Sep. 2022 was ر.ع203.19 Mil. Therefore, Oman Cement's annualized ROA % for the quarter that ended in Sep. 2022 was 2.88%.
The historical rank and industry rank for Oman Cement's ROA % or its related term are showing as below:
MUS:OCOI's ROA % is not ranked *
in the Building Materials industry.
Industry Median: 2.34 * Ranked among companies with meaningful ROA % only.
Oman Cement (MUS:OCOI) 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. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) 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.
Oman Cement ROA % Related Terms
Oman Cement ROA % Historical Data
* Premium members only.
The historical data trend for Oman Cement'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.
For the Building Materials subindustry, Oman Cement'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.
Oman Cement ROA % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Oman Cement's ROA % distribution charts can be found below:
* The bar in red indicates where Oman Cement'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. 2022) net income data.
ROA % is displayed in the 30-year financial page.
Oman Cement (MUS:OCOI) has a ROA % of 2.88% as of Sep. 2022. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Oman Cement and its competitors.
Is Oman Cement's ROA % too high?
Oman Cement's current ROA % is 2.88%. The Building Materials industry median ROA % is 2.34. Oman Cement's value of 2.88% is 23.1% above this industry median. Overall, Oman Cement has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Oman Cement's ROA % compare to competitors?
Oman Cement's ROA % of 2.88% can be compared against companies in the Building Materials industry. The industry median ROA % is 2.34. Oman Cement's value of 2.88% is 23.1% above this benchmark. 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 Building Materials company?
The median ROA % among Building Materials companies is 2.34, based on 409 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. Oman Cement's current ROA % of 2.88% is 23.1% 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 Oman Cement and its competitors. For the Building Materials industry, the median ROA % is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oman Cement's current ROA % is 2.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oman Cement stock overvalued right now?
Oman Cement (MUS:OCOI) has a current ROA % of 2.88%. The current ROA % is 2.88% and 23.1% above the Building Materials industry median of 2.34. Oman Cement's overall GF Score™ is 39/100. 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 Oman Cement (MUS:OCOI), the current ROA % is 2.88% as of Sep. 2022. 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.
Oman Cement Co SAOG is an Oman based company engaged in the manufacture and sale of cement and related products. Its product portfolio covers products such as Sulphate resistant Cement, Ordinary portland cement, Moderate sulphate resistant cement and Oil well cement. The company mainly operates in the geographical segment of the Sultanate of Oman and other GCC countries and generates primarily revenue through the sales of cement and its related products.
39GF Score
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