Pine Island Acquisition (Pine Island Acquisition) ROA % : 4.00% (As of Jun. 2022)

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What is Pine Island Acquisition ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Pine Island Acquisition's annualized Net Income for the quarter that ended in Jun. 2022 was $8.74 Mil. Pine Island Acquisition's average Total Assets over the quarter that ended in Jun. 2022 was $218.75 Mil. Therefore, Pine Island Acquisition's annualized ROA % for the quarter that ended in Jun. 2022 was 4.00%.

The historical rank and industry rank for Pine Island Acquisition's ROA % or its related term are showing as below:

PIPP.WS' s ROA % Range Over the Past 10 Years
Min: 4.13 Med: 4.13 Max: 4.23
Current: 4.23

During the past 2 years, Pine Island Acquisition's highest ROA % was 4.23%. The lowest was 4.13%. And the median was 4.13%.

PIPP.WS's ROA % is not ranked
in the Diversified Financial Services industry.
Industry Median: -0.8 vs PIPP.WS: 4.23

Pine Island Acquisition ROA % Historical Data

The historical data trend for Pine Island Acquisition'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.

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Pine Island Acquisition ROA % Chart

Pine Island Acquisition Annual Data

Trend

Dec20

Dec21

ROA %

4.13

Pine Island Acquisition Quarterly Data
	Aug20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
ROA %	Get a 7-Day Free Trial			3.87	7.13	-2.10	7.88	4.00

Competitive Comparison of Pine Island Acquisition's ROA %

For the Shell Companies subindustry, Pine Island Acquisition'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.

Pine Island Acquisition's ROA % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Pine Island Acquisition's ROA % distribution charts can be found below:

* The bar in red indicates where Pine Island Acquisition's ROA % falls into.

Pine Island Acquisition ROA % Calculation

Pine Island Acquisition's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %	=	Net Income (A: Dec. 2021 )	/	( (Total Assets (A: Dec. 2020 )	+	Total Assets (A: Dec. 2021 ))	/ count )
	=	9.055	/	( (219.682	+	218.87)	/ 2 )
	=	9.055	/	219.276
	=	4.13 %

Pine Island Acquisition's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %	=	Net Income (Q: Jun. 2022 )	/	( (Total Assets (Q: Mar. 2022 )	+	Total Assets (Q: Jun. 2022 ))	/ count )
	=	8.744	/	( (218.679	+	218.819)	/ 2 )
	=	8.744	/	218.749
	=	4.00 %

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 (Jun. 2022) net income data. ROA % is displayed in the 30-year financial page.

Pine Island Acquisition (OTCPK:PIPP.WS) 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:

	ROA %		(Q: Jun. 2022 )
=	Net Income	/	Total Assets
=	8.744	/	218.749
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(8.744 / 0)	*	(0 / 218.749)
=	Net Margin %	*	Asset Turnover
=	N/A %	*	0
=	4.00 %

Note: The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.

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.

Pine Island Acquisition ROA % Related Terms

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