ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Vindhya Telelinks's annualizedNet Income for the quarter that ended in Sep. 2024 was ₹974 Mil.
Vindhya Telelinks's average Total Assets over the quarter that ended in Sep. 2024 was ₹71,975 Mil. Therefore, Vindhya Telelinks's annualized ROA % for the quarter that ended in Sep. 2024 was 1.35%.
The historical rank and industry rank for Vindhya Telelinks's ROA % or its related term are showing as below:
NSE:VINDHYATEL'
s ROA % Range Over the Past 10 Years
Min: 3.34 Med: 5.51 Max: 9.33
Current: 3.42
During the past 13 years, Vindhya Telelinks's highest ROA % was 9.33%. The lowest was 3.34%. And the median was 5.51%.
NSE:VINDHYATEL's ROA % is ranked better than 57.56% of 1720
companies
in the Construction industry
Industry Median: 2.58
vs NSE:VINDHYATEL: 3.42
Vindhya Telelinks ROA % Historical Data
The historical data trend for Vindhya Telelinks'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.
Competitive Comparison of Vindhya Telelinks's ROA %
For the Engineering & Construction subindustry, Vindhya Telelinks'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.
Vindhya Telelinks's ROA % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Vindhya Telelinks's ROA % distribution charts can be found below:
* The bar in red indicates where Vindhya Telelinks's ROA % falls into.
Vindhya Telelinks ROA % Calculation
Vindhya Telelinks's annualized ROA % for the fiscal year that ended in Mar. 2024 is calculated as:
* 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 (Sep. 2024) net income data.
ROA % is displayed in the 30-year financial page.
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 four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 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.
Vindhya Telelinks ROA % Related Terms
Thank you for viewing the detailed overview of Vindhya Telelinks's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vindhya Telelinks Ltd is engaged in the manufacturing and sale of cables as well as turnkey contracts and services business. The company's operating segment includes Cable and EPC (Engineering, Procurement and Construction). It generates maximum revenue from the EPC segment. EPC segment undertakes and executes contracts or provides infrastructure related services with or without materials. Geographically, it derives a majority of its revenue from India. The company derives revenue from goods and services such as Construction Contracts, Indefeasible Right of Usage (IRU), and Operation and Maintenance Services.
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