Royal Arc ElectrodesNSE:ROYALARC 19 ROA % is 13.32% as of Mar. 2026, which is 2% below its 10-year median of 13.53. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 3,071 Industrial Products companies, Royal Arc Electrodes ranks better than 74.08% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Royal Arc Electrodes's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹114.6 Mil.
Royal Arc Electrodes's average Total Assets over the quarter that ended in Mar. 2026 was ₹860.4 Mil. Therefore, Royal Arc Electrodes's annualized ROA % for the quarter that ended in Mar. 2026 was 13.32%.
The historical rank and industry rank for Royal Arc Electrodes's ROA % or its related term are showing as below:
NSE:ROYALARC'
s ROA % Range Over the Past 10 Years
Min: 4.99 Med: 13.53 Max: 25.24
Current: 6.66
During the past 5 years, Royal Arc Electrodes's highest ROA % was 25.24%. The lowest was 4.99%. And the median was 13.53%.
NSE:ROYALARC's ROA % is ranked better than 74.08% of 3071
companies
in the Industrial Products industry
Industry Median: 3.04
vs NSE:ROYALARC: 6.66
Royal Arc Electrodes (NSE:ROYALARC) 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 two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) 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.
For the Electrical Equipment & Parts subindustry, Royal Arc Electrodes'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.
Royal Arc Electrodes ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's ROA % distribution charts can be found below:
* The bar in red indicates where Royal Arc Electrodes'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 two times the semi-annual (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Royal Arc Electrodes (NSE:ROYALARC) has a ROA % of 13.32% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Royal Arc Electrodes and its competitors. This is near median its historical median of 13.53. Over the past decade, Royal Arc Electrodes' ROA % has ranged from 4.99 to 25.24. According to the industry distribution chart, Royal Arc Electrodes ranks #796 out of 3071 companies in the Industrial Products industry, placing it in the top 25.9%.
Is Royal Arc Electrodes' ROA % too high?
Royal Arc Electrodes' current ROA % of 13.32% is near median its 10-year median of 13.53. Over the past 10 years, this metric has ranged from a low of 4.99 to a high of 25.24. The Industrial Products industry median ROA % is 3.04. Royal Arc Electrodes' value of 13.32% is 338.2% above this industry median. Based on the distribution chart, Royal Arc Electrodes ranks #796 out of 3071 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Royal Arc Electrodes has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Royal Arc Electrodes' ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Royal Arc Electrodes ranks #796 out of 3071 companies for ROA %. This puts Royal Arc Electrodes in the upper half of its industry. The industry median ROA % is 3.04. Royal Arc Electrodes' value of 13.32% is 338.2% above this benchmark. Historically, Royal Arc Electrodes' own ROA % has ranged from 4.99 to 25.24 over the past decade. While the company's 10-year median is 13.53 vs. the industry median of 3.04, Royal Arc Electrodes 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.04, based on 3,071 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. Royal Arc Electrodes's current ROA % of 13.32% is 338.2% 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 Royal Arc Electrodes and its competitors. For the Industrial Products industry, the median ROA % is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Arc Electrodes's current ROA % is 13.32%, which is near median its own 10-year median of 13.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Arc Electrodes stock overvalued right now?
Royal Arc Electrodes (NSE:ROYALARC) has a current ROA % of 13.32%. The current ROA % is 13.32%, which is near median its 10-year median of 13.53 and 338.2% above the Industrial Products industry median of 3.04. Royal Arc Electrodes' overall GF Score™ is 19/100 with 4 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 Royal Arc Electrodes (NSE:ROYALARC), the current ROA % is 13.32% as of Mar. 2026. 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.
Royal Arc Electrodes Ltd is engaged in the business of manufacturing welding consumables such as welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the Company is also engaged in the business of trading ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux, and TIG /MIG wires. It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc.
19GF Score
Get the complete analysis for NSE:ROYALARC
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:ROYALARC has been successfully added to your 