ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Signature Bank's annualizedNet Income for the quarter that ended in Dec. 2022 was $1,203 Mil.
Signature Bank's average Total Assets over the quarter that ended in Dec. 2022 was $112,416 Mil. Therefore, Signature Bank's annualized ROA % for the quarter that ended in Dec. 2022 was 1.07%.
The historical rank and industry rank for Signature Bank's ROA % or its related term are showing as below:
SBNY's ROA % is not ranked *
in the Banks industry.
Industry Median: 0.98 * Ranked among companies with meaningful ROA % only.
Signature Bank (OTCPK:SBNY) 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 (Dec. 2022) net income data. The Revenue data used here is four times the quarterly (Dec. 2022) 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.
Signature Bank ROA % Related Terms
Signature Bank ROA % Historical Data
* Premium members only.
The historical data trend for Signature Bank'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 Banks - Regional subindustry, Signature Bank'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.
Signature Bank ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Signature Bank's ROA % distribution charts can be found below:
* The bar in red indicates where Signature Bank'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 (Dec. 2022) net income data.
ROA % is displayed in the 30-year financial page.
Signature Bank (SBNY) has a ROA % of 1.07% as of Dec. 2022. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Signature Bank and its competitors.
Is Signature Bank's ROA % too high?
Signature Bank's current ROA % is 1.07%. The Banks industry median ROA % is 0.98. Signature Bank's value of 1.07% is 9.2% above this industry median. Overall, Signature Bank has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Signature Bank's ROA % compare to FSWA and FSTF?
Signature Bank's ROA % of 1.07% can be compared against companies in the Banks industry. The industry median ROA % is 0.98. Signature Bank's value of 1.07% is 9.2% 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 Banks company?
The median ROA % among Banks companies is 0.98, based on 1,532 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. Signature Bank's current ROA % of 1.07% is 9.2% 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 Signature Bank and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Signature Bank's current ROA % is 1.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Signature Bank stock overvalued right now?
Signature Bank (SBNY) has a current ROA % of 1.07%. The current ROA % is 1.07% and 9.2% above the Banks industry median of 0.98. Signature Bank's overall GF Score™ is 12/100. 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 Signature Bank (SBNY), the current ROA % is 1.07% as of Dec. 2022. 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.
Signature Bank is a New York-based commercial bank. It is engaged in offering a wide range of business and personal banking products and services. The operating segments of the company are Commercial banking and Specialty finance. The company operates in New York and derives a majority of its revenue from the Commercial banking segment, which consists principally of commercial real estate lending, fund banking, venture banking, commercial and industrial lending, and commercial deposit gathering activities. Specialty Finance consists of financing and leasing products, including equipment, transportation, taxi medallion, commercial marine, municipal, and national franchise financing and leasing.
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