Forge Auto InternationalNSE:FORGEAUTO 16 ROA % is 8.29% as of Mar. 2025, which is 15% above its 10-year median of 7.20. GuruFocus rates NSE:FORGEAUTO with a GF Score™ of 16/100. The stock has 3 warning signs investors should review. Among 1,335 Vehicles & Parts companies, Forge Auto International ranks better than 84.04% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Forge Auto International's annualizedNet Income for the quarter that ended in Mar. 2025 was ₹95 Mil.
Forge Auto International's average Total Assets over the quarter that ended in Mar. 2025 was ₹1,150 Mil. Therefore, Forge Auto International's annualized ROA % for the quarter that ended in Mar. 2025 was 8.29%.
The historical rank and industry rank for Forge Auto International's ROA % or its related term are showing as below:
NSE:FORGEAUTO'
s ROA % Range Over the Past 10 Years
Min: 4.66 Med: 7.2 Max: 8.29
Current: 8.29
During the past 4 years, Forge Auto International's highest ROA % was 8.29%. The lowest was 4.66%. And the median was 7.20%.
NSE:FORGEAUTO's ROA % is ranked better than 84.04% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs NSE:FORGEAUTO: 8.29
Forge Auto International (NSE:FORGEAUTO) 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 (Mar. 2025) net income data. The Revenue data used here is one times the annual (Mar. 2025) 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.
* 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.
Forge Auto International ROA % Chart
Forge Auto International Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
ROA %
4.66
7.11
7.28
8.29
Forge Auto International Semi-Annual Data
Mar22
Mar23
Mar24
Mar25
ROA %
4.66
7.11
7.28
8.29
NSE:FORGEAUTO vs ORLY, AZO: ROA % Comparison
For the Auto Parts subindustry, Forge Auto International'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.
Forge Auto International ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Forge Auto International's ROA % distribution charts can be found below:
* The bar in red indicates where Forge Auto International'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 (Mar. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Forge Auto International (NSE:FORGEAUTO) has a ROA % of 8.29% as of Mar. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Forge Auto International and its competitors. This is 15% above median its historical median of 7.20. Over the past decade, Forge Auto International's ROA % has ranged from 4.66 to 8.29. According to the industry distribution chart, Forge Auto International ranks #213 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 16%.
Is Forge Auto International's ROA % too high?
Forge Auto International's current ROA % of 8.29% is 15% above median its 10-year median of 7.20. Over the past 10 years, this metric has ranged from a low of 4.66 to a high of 8.29. The Vehicles & Parts industry median ROA % is 2.95. Forge Auto International's value of 8.29% is 181% above this industry median. Based on the distribution chart, Forge Auto International ranks #213 out of 1335 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Forge Auto International has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Forge Auto International's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Forge Auto International ranks #213 out of 1335 companies for ROA %. This places Forge Auto International in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 2.95. Forge Auto International's value of 8.29% is 181% above this benchmark. Historically, Forge Auto International's own ROA % has ranged from 4.66 to 8.29 over the past decade. While the company's 10-year median is 7.20 vs. the industry median of 2.95, Forge Auto International 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 Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,335 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. Forge Auto International's current ROA % of 8.29% is 181% 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 Forge Auto International and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forge Auto International's current ROA % is 8.29%, which is 15% above median its own 10-year median of 7.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forge Auto International stock overvalued right now?
Forge Auto International (NSE:FORGEAUTO) has a current ROA % of 8.29%. The current ROA % is 8.29%, which is 15% above median its 10-year median of 7.20 and 181% above the Vehicles & Parts industry median of 2.95. Forge Auto International's overall GF Score™ is 16/100 with 3 warning signs 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 Forge Auto International (NSE:FORGEAUTO), the current ROA % is 8.29% as of Mar. 2025. 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.
Forge Auto International Ltd is an engineering company engaged in forging and manufacturing of complex and safety-critical, forged and precision machined components such as big rings, small rings, big ball studs, gear blank with a broach, stub axle assembly, flange yoke 325 HS, catering to different industry sectors like auto industry including automobiles, tractors, railways etc. and non-auto sectors like agriculture parts, hydraulic parts, striking tools etc. It serves its customers comprising of domestic and global original equipment manufacturers (OEMs) engaged in manufacturing for both the automotive sector and other nonautomotive sector, used across industries by a diversified base of customers.
16GF Score
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