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E2E Networks (NSE:E2E) ROA % : 6.04% (As of Dec. 2024)


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What is E2E Networks ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. E2E Networks's annualized Net Income for the quarter that ended in Dec. 2024 was ₹464 Mil. E2E Networks's average Total Assets over the quarter that ended in Dec. 2024 was ₹7,682 Mil. Therefore, E2E Networks's annualized ROA % for the quarter that ended in Dec. 2024 was 6.04%.

The historical rank and industry rank for E2E Networks's ROA % or its related term are showing as below:

NSE:E2E' s ROA % Range Over the Past 10 Years
Min: -27.23   Med: 15.66   Max: 29.72
Current: 9.96

During the past 12 years, E2E Networks's highest ROA % was 29.72%. The lowest was -27.23%. And the median was 15.66%.

NSE:E2E's ROA % is ranked better than
82.3% of 2825 companies
in the Software industry
Industry Median: 1.54 vs NSE:E2E: 9.96

E2E Networks ROA % Historical Data

The historical data trend for E2E Networks'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.

E2E Networks ROA % Chart

E2E Networks Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -27.23 -3.67 15.25 17.03 13.51

E2E Networks Quarterly Data
Mar19 Sep19 Mar20 Sep20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 21.64 5.53 15.89 6.32 6.04

Competitive Comparison of E2E Networks's ROA %

For the Software - Infrastructure subindustry, E2E Networks'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.


E2E Networks's ROA % Distribution in the Software Industry

For the Software industry and Technology sector, E2E Networks's ROA % distribution charts can be found below:

* The bar in red indicates where E2E Networks's ROA % falls into.



E2E Networks ROA % Calculation

E2E Networks's annualized ROA % for the fiscal year that ended in Mar. 2024 is calculated as:

ROA %=Net Income (A: Mar. 2024 )/( (Total Assets (A: Mar. 2023 )+Total Assets (A: Mar. 2024 ))/ count )
=218.669/( (684.073+2552.356)/ 2 )
=218.669/1618.2145
=13.51 %

E2E Networks's annualized ROA % for the quarter that ended in Dec. 2024 is calculated as:

ROA %=Net Income (Q: Dec. 2024 )/( (Total Assets (Q: Sep. 2024 )+Total Assets (Q: Dec. 2024 ))/ count )
=463.736/( (7681.881+0)/ 1 )
=463.736/7681.881
=6.04 %

* 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 (Dec. 2024) net income data. ROA % is displayed in the 30-year financial page.


E2E Networks  (NSE:E2E) 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: Dec. 2024 )
=Net Income/Total Assets
=463.736/7681.881
=(Net Income / Revenue)*(Revenue / Total Assets)
=(463.736 / 1664.188)*(1664.188 / 7681.881)
=Net Margin %*Asset Turnover
=27.87 %*0.2166
=6.04 %

Note: The Net Income data used here is four times the quarterly (Dec. 2024) net income data. The Revenue data used here is four times the quarterly (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.


E2E Networks ROA % Related Terms

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E2E Networks Business Description

Traded in Other Exchanges
N/A
Address
Mathura Road, Awfis, A-24/9, Mohan Co-operative Industrial Estate, Saidabad, New Delhi, IND, 110044
E2E Networks Ltd is engaged in the business of providing cloud infrastructure services. In cloud infrastructure business, it provides Infrastructure to handle workloads related to the computing needs of clients. This infrastructure includes hardware and software components such as servers, storage, networking, virtualization, and pre-configured open source software or Server & Hypervisor Operating Systems, and Database Systems from Independent Software Vendors.

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