Sin Heng Heavy Machinery (SGX:BKA) ROA % : 7.31% (As of Dec. 2023)

Sin Heng Heavy Machinery ROA % Chart

Sin Heng Heavy Machinery Annual Data
	Trend	Jun14	Jun15	Jun16	Jun17	Dec18	Dec19	Dec20	Dec21	Dec22	Dec23
ROA %		Get a 7-Day Free Trial					-0.89	0.91	2.99	2.92	6.31

Sin Heng Heavy Machinery Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROA %	Get a 7-Day Free Trial															3.49	2.87	3.09	5.21	7.31

Competitive Comparison of Sin Heng Heavy Machinery's ROA %

For the Farm & Heavy Construction Machinery subindustry, Sin Heng Heavy Machinery'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.

Sin Heng Heavy Machinery's ROA % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Sin Heng Heavy Machinery's ROA % distribution charts can be found below:

* The bar in red indicates where Sin Heng Heavy Machinery's ROA % falls into.

Sin Heng Heavy Machinery ROA % Calculation

Sin Heng Heavy Machinery's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

Sin Heng Heavy Machinery's annualized ROA % for the quarter that ended in Dec. 2023 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 two times the semi-annual (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.

Sin Heng Heavy Machinery  (SGX:BKA) 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 bank’s 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 two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 2023) 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.

Sin Heng Heavy Machinery ROA % Related Terms

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Sin Heng Heavy Machinery (SGX:BKA) Business Description