United Finance CoOGMUS:UFCI +1.08% ROA % is 1.94% as of Dec. 2024, which is 7% above its 10-year median of 1.82. The stock has 5 warning signs investors should review. Among 545 Credit Services companies, United Finance CoOG ranks better than 50.28% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. United Finance CoOG's annualizedNet Income for the quarter that ended in Dec. 2024 was ر.ع2.08 Mil.
United Finance CoOG's average Total Assets over the quarter that ended in Dec. 2024 was ر.ع107.19 Mil. Therefore, United Finance CoOG's annualized ROA % for the quarter that ended in Dec. 2024 was 1.94%.
The historical rank and industry rank for United Finance CoOG's ROA % or its related term are showing as below:
MUS:UFCI'
s ROA % Range Over the Past 10 Years
Min: 0.65 Med: 1.82 Max: 4.33
Current: 1.94
During the past 13 years, United Finance CoOG's highest ROA % was 4.33%. The lowest was 0.65%. And the median was 1.82%.
MUS:UFCI's ROA % is ranked better than 50.28% of 545
companies
in the Credit Services industry
Industry Median: 1.92
vs MUS:UFCI: 1.94
United Finance CoOG (MUS:UFCI) 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.
United Finance CoOG ROA % Related Terms
United Finance CoOG ROA % Historical Data
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The historical data trend for United Finance CoOG'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 Credit Services subindustry, United Finance CoOG'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.
United Finance CoOG ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, United Finance CoOG's ROA % distribution charts can be found below:
* The bar in red indicates where United Finance CoOG'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.
United Finance CoOG (MUS:UFCI) has a ROA % of 1.94% 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 United Finance CoOG and its competitors. This is near median its historical median of 1.82. Over the past decade, United Finance CoOG's ROA % has ranged from 0.65 to 4.33. According to the industry distribution chart, United Finance CoOG ranks #271 out of 545 companies in the Credit Services industry, placing it in the top 49.7%.
Is United Finance CoOG's ROA % too high?
United Finance CoOG's current ROA % of 1.94% is near median its 10-year median of 1.82. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 4.33. The Credit Services industry median ROA % is 1.92. United Finance CoOG's value of 1.94% is 1% above this industry median. Based on the distribution chart, United Finance CoOG ranks #271 out of 545 companies in the Credit Services industry, which is above the industry midpoint.
How does United Finance CoOG's ROA % compare to V and MA?
According to the Credit Services industry distribution chart, United Finance CoOG ranks #271 out of 545 companies for ROA %. This puts United Finance CoOG in the upper half of its industry. The industry median ROA % is 1.92. United Finance CoOG's value of 1.94% is 1% above this benchmark. Historically, United Finance CoOG's own ROA % has ranged from 0.65 to 4.33 over the past decade. While the company's 10-year median is 1.82 vs. the industry median of 1.92, United Finance CoOG 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 Credit Services company?
The median ROA % among Credit Services companies is 1.92, based on 545 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. United Finance CoOG's current ROA % of 1.94% is 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 United Finance CoOG and its competitors. For the Credit Services industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Finance CoOG's current ROA % is 1.94%, which is near median its own 10-year median of 1.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Finance CoOG stock overvalued right now?
Based on GuruFocus' analysis, United Finance CoOG (MUS:UFCI) is currently considered Modestly Overvalued. The stock's GF Value™ is ر.ع0.08, compared to a current price of ر.ع0.09 — trading 17.5% above its estimated fair value. The current ROA % is 1.94%, which is near median its 10-year median of 1.82 and 1% above the Credit Services industry median of 1.92. 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 United Finance CoOG (MUS:UFCI), the current ROA % is 1.94% 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.
United Finance Co SAOG is principally involved in providing vehicle and equipment financing and is also licensed to provide composite loans, bridge loans, hire purchase, debt factoring and financing of receivables and leasing in the Sultanate of Oman. The company's offerings include Car finance, Fleet finance, Business finance, Term loans, Equipment finance, Commercial vehicle and many more. The company derives revenue in the form of interest income, with the majority coming from its retail customers.
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