ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. PSAV's annualizedNet Income for the quarter that ended in Mar. 2016 was $27.78 Mil.
PSAV's average Total Assets over the quarter that ended in Mar. 2016 was $1,247.65 Mil. Therefore, PSAV's annualized ROA % for the quarter that ended in Mar. 2016 was 2.23%.
The historical rank and industry rank for PSAV's ROA % or its related term are showing as below:
PSAV's ROA % is not ranked *
in the Media - Diversified industry.
Industry Median: 0.65 * Ranked among companies with meaningful ROA % only.
PSAV (NYSE:PSAV) 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. 2016) net income data. The Revenue data used here is four times the quarterly (Mar. 2016) 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.
PSAV ROA % Related Terms
PSAV ROA % Historical Data
* Premium members only.
The historical data trend for PSAV'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 Broadcasting subindustry, PSAV'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.
PSAV ROA % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, PSAV's ROA % distribution charts can be found below:
* The bar in red indicates where PSAV'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. 2016) net income data.
ROA % is displayed in the 30-year financial page.
PSAV (PSAV) has a ROA % of 2.23% as of Mar. 2016. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on PSAV and its competitors.
Is PSAV's ROA % too high?
PSAV's current ROA % is 2.23%. The Media - Diversified industry median ROA % is 0.65. PSAV's value of 2.23% is 243.1% above this industry median.
How does PSAV's ROA % compare to CRCO and ASKH?
PSAV's ROA % of 2.23% can be compared against companies in the Media - Diversified industry. The industry median ROA % is 0.65. PSAV's value of 2.23% is 243.1% above this benchmark. 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 Media - Diversified company?
The median ROA % among Media - Diversified companies is 0.65, based on 1,042 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. PSAV's current ROA % of 2.23% is 243.1% 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 PSAV and its competitors. For the Media - Diversified industry, the median ROA % is 0.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PSAV's current ROA % is 2.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PSAV stock overvalued right now?
PSAV (PSAV) has a current ROA % of 2.23%. The current ROA % is 2.23% and 243.1% above the Media - Diversified industry median of 0.65. 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 PSAV (PSAV), the current ROA % is 2.23% as of Mar. 2016. 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.
PSAV Inc was incorporated in Delaware on August 11, 2015. The Company along with its subsidiaries provides event technology services. The Company provides services including audiovisual services, equipment rental, staging and meeting services, communication systems, and related technical support to its customers in various venues, including hotels and convention centers. The Company's Video technology includes front and rear projection from large format HD high lumen projection to boardroom-style projectors, playback systems, image magnification, digital capture, cameras and display systems, including LED displays and video walls; Rigging Solutions include design and installation of permanently installed rig points in meeting venues, day-to-day deployment of rigging systems to safely transform meeting and event spaces for larger and more sophisticated set and lighting designs and certified trainers and inspectors; Wi-Fi Solutions include managing venues' entire network to provide customers secure and reliable wired and wireless solutions; Staging includes collections of custom screens and the ability to provide concert sound, broadcast quality projection, seasoned stage producers, and CAD drawing; Creative Services including Thematic creation, PowerPoint display, video creation, & stage sets; Mobile Device Applications tailored to the specific events that provide the schedule of events, maps, sponsors and detailed information on the host customer; Video Mapping / Simultaneous Translation; Virtual Meetings and Events; Event Consultation and Support, Power Distribution Solutions including streamlining of special event power distribution for event and production power across events, meeting rooms and trade shows; Audio including microphone and sound solutions with digital mixers, wireless microphones, networked audio and proprietary software to control live sound systems; and Lighting including speaker and stage lighting, intelligent lighting and decorative and theatrical lighting through gel lights and LED lights. The Company operates in two segments including Domestic and International. The Domestic segment provides services to customers throughout the United States and Puerto Rico; and is provider of event technology services at approximately over 1,000 hotel properties and other event venues. The International segment provides services to its customers in Canada, Mexico, the Caribbean, Europe and the Middle East, in addition to providing non-venue based services in Asia; and provides event technology services at approximately over 300 international hotel properties and other event venues. The Company's customers include corporations, event organizers, trade associations and meeting planners. The Company faces competition from Freeman Company.
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