Ovation ScienceOVATF ROA % is -650.00% as of Mar. 2026. The stock has 4 warning signs investors should review. Among 1,006 Drug Manufacturers companies, Ovation Science ranks worse than 99.6% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ovation Science's annualizedNet Income for the quarter that ended in Mar. 2026 was $-0.31 Mil.
Ovation Science's average Total Assets over the quarter that ended in Mar. 2026 was $0.05 Mil. Therefore, Ovation Science's annualized ROA % for the quarter that ended in Mar. 2026 was -650.00%.
The historical rank and industry rank for Ovation Science's ROA % or its related term are showing as below:
OVATF'
s ROA % Range Over the Past 10 Years
Min: -1241.94 Med: -150.27 Max: -28.04
Current: -1241.94
During the past 9 years, Ovation Science's highest ROA % was -28.04%. The lowest was -1241.94%. And the median was -150.27%.
OVATF's ROA % is ranked worse than 99.6% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 2.685
vs OVATF: -1241.94
Ovation Science (OTCPK:OVATF) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (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.
Ovation Science ROA % Related Terms
Ovation Science ROA % Historical Data
* Premium members only.
The historical data trend for Ovation Science'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Ovation Science'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.
Ovation Science ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ovation Science's ROA % distribution charts can be found below:
* The bar in red indicates where Ovation Science'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 four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Ovation Science (OVATF) has a ROA % of -650.00% 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 Ovation Science and its competitors. According to the industry distribution chart, Ovation Science ranks #1002 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 99.6%.
Is Ovation Science's ROA % too high?
Ovation Science's current ROA % is -650.00%. Based on the distribution chart, Ovation Science ranks #1002 out of 1006 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers.
How does Ovation Science's ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Ovation Science ranks #1002 out of 1006 companies for ROA %. This places Ovation Science in the lower half of its industry. The industry median ROA % is 2.69. 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.69, based on 1,006 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. 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 Ovation Science and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ovation Science's current ROA % is -650.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ovation Science stock overvalued right now?
Based on GuruFocus' analysis, Ovation Science (OVATF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.03, compared to a current price of $0.04 — trading 16.7% above its estimated fair value. The current ROA % is -650.00%. 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 Ovation Science (OVATF), the current ROA % is -650.00% 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.
Ovation Science Inc. is a Canada-based company mainly engaged in the business of providing topical and transdermal cannabis products under the Ovation brand label, utilizing patented Invisicare delivery technology. The Company operates in one reportable operating segment, the sub-licensing and sales of cannabis products that utilize Invisicare, a patented polymer-based technology for topical and transdermal skin care products.
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