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Polysil Irrigation Systems (NSE:POLYSIL) ROA % : 2.24% (As of Mar. 2023)


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What is Polysil Irrigation Systems ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Polysil Irrigation Systems's annualized Net Income for the quarter that ended in Mar. 2023 was ₹11.4 Mil. Polysil Irrigation Systems's average Total Assets over the quarter that ended in Mar. 2023 was ₹507.4 Mil. Therefore, Polysil Irrigation Systems's annualized ROA % for the quarter that ended in Mar. 2023 was 2.24%.

The historical rank and industry rank for Polysil Irrigation Systems's ROA % or its related term are showing as below:

NSE:POLYSIL' s ROA % Range Over the Past 10 Years
Min: 0.77   Med: 1.55   Max: 2.24
Current: 2.24

During the past 3 years, Polysil Irrigation Systems's highest ROA % was 2.24%. The lowest was 0.77%. And the median was 1.55%.

NSE:POLYSIL's ROA % is ranked worse than
59.22% of 3014 companies
in the Industrial Products industry
Industry Median: 3.305 vs NSE:POLYSIL: 2.24

Polysil Irrigation Systems ROA % Historical Data

The historical data trend for Polysil Irrigation Systems'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.

Polysil Irrigation Systems ROA % Chart

Polysil Irrigation Systems Annual Data
Trend Mar21 Mar22 Mar23
ROA %
1.55 0.77 2.24

Polysil Irrigation Systems Semi-Annual Data
Mar21 Mar22 Mar23
ROA % 1.55 0.77 2.24

Competitive Comparison of Polysil Irrigation Systems's ROA %

For the Specialty Industrial Machinery subindustry, Polysil Irrigation Systems'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.


Polysil Irrigation Systems's ROA % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Polysil Irrigation Systems's ROA % distribution charts can be found below:

* The bar in red indicates where Polysil Irrigation Systems's ROA % falls into.



Polysil Irrigation Systems ROA % Calculation

Polysil Irrigation Systems's annualized ROA % for the fiscal year that ended in Mar. 2023 is calculated as:

ROA %=Net Income (A: Mar. 2023 )/( (Total Assets (A: Mar. 2022 )+Total Assets (A: Mar. 2023 ))/ count )
=11.353/( (461.68+553.146)/ 2 )
=11.353/507.413
=2.24 %

Polysil Irrigation Systems's annualized ROA % for the quarter that ended in Mar. 2023 is calculated as:

ROA %=Net Income (Q: Mar. 2023 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Mar. 2023 ))/ count )
=11.353/( (461.68+553.146)/ 2 )
=11.353/507.413
=2.24 %

* 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. 2023) net income data. ROA % is displayed in the 30-year financial page.


Polysil Irrigation Systems  (NSE:POLYSIL) 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: Mar. 2023 )
=Net Income/Total Assets
=11.353/507.413
=(Net Income / Revenue)*(Revenue / Total Assets)
=(11.353 / 438.766)*(438.766 / 507.413)
=Net Margin %*Asset Turnover
=2.59 %*0.8647
=2.24 %

Note: The Net Income data used here is one times the annual (Mar. 2023) net income data. The Revenue data used here is one times the annual (Mar. 2023) 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.


Polysil Irrigation Systems ROA % Related Terms

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Polysil Irrigation Systems Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Survey No- 340/1, Beside Hystuff Steel, At Post Raniya, Taluka Savli, District Vadodara, Vadodara, GJ, IND, 391780
Polysil Irrigation Systems Ltd is engaged in manufacturing and sale of HDPE pipes, fittings and micro irrigation systems, such as drip irrigation system and sprinkler irrigation system, its components, accessories and allied products. Its product range includes HDPE Pipes, pipe fittings and irrigation equipment's, including disc filters, screen filters, hydro-cyclone filters, sand filters (gravel), compression fittings, valves (electrical and mechanicals), fertilizer tanks, Digital Controllers, Pressure Gauges, etc.

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