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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shandong Linglong Tyre Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥68 Mil.
Shandong Linglong Tyre Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥47,339 Mil. Therefore, Shandong Linglong Tyre Co's annualized ROA % for the quarter that ended in Mar. 2026 was 0.14%.
The historical rank and industry rank for Shandong Linglong Tyre Co's ROA % or its related term are showing as below:
SHSE:601966'
s ROA % Range Over the Past 10 Years
Min: 0.82 Med: 4.61 Max: 7.94
Current: 2.19
During the past 13 years, Shandong Linglong Tyre Co's highest ROA % was 7.94%. The lowest was 0.82%. And the median was 4.61%.
SHSE:601966's ROA % is ranked worse than 56.95% of 1331
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs SHSE:601966: 2.19
Shandong Linglong Tyre Co (SHSE:601966) 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.
* 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 Auto Parts subindustry, Shandong Linglong Tyre Co'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.
Shandong Linglong Tyre Co ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Shandong Linglong Tyre Co's ROA % distribution charts can be found below:
* The bar in red indicates where Shandong Linglong Tyre Co'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.
Shandong Linglong Tyre Co (SHSE:601966) has a ROA % of 0.14% 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 Shandong Linglong Tyre Co and its competitors. This is 97% below median its historical median of 4.61. Over the past decade, Shandong Linglong Tyre Co's ROA % has ranged from 0.82 to 7.94. According to the industry distribution chart, Shandong Linglong Tyre Co ranks #758 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 56.9%.
Is Shandong Linglong Tyre Co's ROA % too high?
Shandong Linglong Tyre Co's current ROA % of 0.14% is 97% below median its 10-year median of 4.61. Over the past 10 years, this metric has ranged from a low of 0.82 to a high of 7.94. The Vehicles & Parts industry median ROA % is 2.95. Shandong Linglong Tyre Co's value of 0.14% is 95.3% below this industry median. Based on the distribution chart, Shandong Linglong Tyre Co ranks #758 out of 1331 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Shandong Linglong Tyre Co has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shandong Linglong Tyre Co's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Shandong Linglong Tyre Co ranks #758 out of 1331 companies for ROA %. This places Shandong Linglong Tyre Co in the lower half of its industry. The industry median ROA % is 2.95. Shandong Linglong Tyre Co's value of 0.14% is 95.3% below this benchmark. Historically, Shandong Linglong Tyre Co's own ROA % has ranged from 0.82 to 7.94 over the past decade. While the company's 10-year median is 4.61 vs. the industry median of 2.95, Shandong Linglong Tyre Co has consistently been below the industry average. 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 Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,331 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. Shandong Linglong Tyre Co's current ROA % of 0.14% is 95.3% below 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 Shandong Linglong Tyre Co and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Linglong Tyre Co's current ROA % is 0.14%, which is 97% below median its own 10-year median of 4.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Linglong Tyre Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Linglong Tyre Co (SHSE:601966) is currently considered Possible Value Trap. The stock's GF Value™ is ¥20.23, compared to a current price of ¥11.07 — trading 45.3% below its estimated fair value. The current ROA % is 0.14%, which is 97% below median its 10-year median of 4.61 and 95.3% below the Vehicles & Parts industry median of 2.95. Shandong Linglong Tyre Co's overall GF Score™ is 69/100 with 6 warning signs to review. 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 Shandong Linglong Tyre Co (SHSE:601966), the current ROA % is 0.14% 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.
Is Shandong Linglong Tyre Co (SHSE:601966) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Linglong Tyre Co stock appears to be undervalued.
The current stock price of ¥11.07 is trading 45.3% below its estimated GF Value™ of ¥20.23.
GuruFocus considers Shandong Linglong Tyre Co to be Possible Value Trap.
Key valuation signals for SHSE:601966:
ROA %: 0.14% (97% below median its 10-year median of 4.61)
GF Value™: ¥20.23 vs. price of ¥11.07 (45.3% below fair value)
Industry Position: 95.3% below the Vehicles & Parts median (#758 of 1331)
No single metric tells the full story. See the SHSE:601966 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Linglong Tyre Co Ltd is a China-based tire manufacturing company engaged in the business of manufacturing and selling tires. Its product portfolio comprises of passenger car radial tires, light truck radial tires, truck and bus radial tires, specialty tires, winter tires, SUV tires, and others. It offers tire products under the brands Linglong, LEAO, GREEN MAX, ATLAS, INFINITY, CROSSWIND, and EVOLUXX.
69GF Score
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