ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Longyan Zhuoyue New Energy Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥121 Mil.
Longyan Zhuoyue New Energy Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥4,140 Mil. Therefore, Longyan Zhuoyue New Energy Co's annualized ROA % for the quarter that ended in Mar. 2026 was 2.91%.
The historical rank and industry rank for Longyan Zhuoyue New Energy Co's ROA % or its related term are showing as below:
SHSE:688196'
s ROA % Range Over the Past 10 Years
Min: 2.6 Med: 10.46 Max: 17.68
Current: 3.21
During the past 13 years, Longyan Zhuoyue New Energy Co's highest ROA % was 17.68%. The lowest was 2.60%. And the median was 10.46%.
SHSE:688196's ROA % is ranked better than 52.85% of 1614
companies
in the Chemicals industry
Industry Median: 2.9
vs SHSE:688196: 3.21
Longyan Zhuoyue New Energy Co (SHSE:688196) 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.
Longyan Zhuoyue New Energy Co ROA % Related Terms
Longyan Zhuoyue New Energy Co ROA % Historical 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.
For the Specialty Chemicals subindustry, Longyan Zhuoyue New Energy 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.
Longyan Zhuoyue New Energy Co ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Longyan Zhuoyue New Energy Co's ROA % distribution charts can be found below:
* The bar in red indicates where Longyan Zhuoyue New Energy 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.
Longyan Zhuoyue New Energy Co (SHSE:688196) has a ROA % of 2.91% 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 Longyan Zhuoyue New Energy Co and its competitors. This is 72% below median its historical median of 10.46. Over the past decade, Longyan Zhuoyue New Energy Co's ROA % has ranged from 2.60 to 17.68. According to the industry distribution chart, Longyan Zhuoyue New Energy Co ranks #761 out of 1614 companies in the Chemicals industry, placing it in the top 47.1%.
Is Longyan Zhuoyue New Energy Co's ROA % too high?
Longyan Zhuoyue New Energy Co's current ROA % of 2.91% is 72% below median its 10-year median of 10.46. Over the past 10 years, this metric has ranged from a low of 2.60 to a high of 17.68. The Chemicals industry median ROA % is 2.90. Longyan Zhuoyue New Energy Co's value of 2.91% is 0.3% above this industry median. Based on the distribution chart, Longyan Zhuoyue New Energy Co ranks #761 out of 1614 companies in the Chemicals industry, which is above the industry midpoint. Overall, Longyan Zhuoyue New Energy Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Longyan Zhuoyue New Energy Co's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Longyan Zhuoyue New Energy Co ranks #761 out of 1614 companies for ROA %. This puts Longyan Zhuoyue New Energy Co in the upper half of its industry. The industry median ROA % is 2.90. Longyan Zhuoyue New Energy Co's value of 2.91% is 0.3% above this benchmark. Historically, Longyan Zhuoyue New Energy Co's own ROA % has ranged from 2.60 to 17.68 over the past decade. While the company's 10-year median is 10.46 vs. the industry median of 2.90, Longyan Zhuoyue New Energy Co has consistently been above 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 Chemicals company?
The median ROA % among Chemicals companies is 2.90, based on 1,614 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. Longyan Zhuoyue New Energy Co's current ROA % of 2.91% is 0.3% 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 Longyan Zhuoyue New Energy Co and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longyan Zhuoyue New Energy Co's current ROA % is 2.91%, which is 72% below median its own 10-year median of 10.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longyan Zhuoyue New Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Longyan Zhuoyue New Energy Co (SHSE:688196) is currently considered Fairly Valued. The stock's GF Value™ is ¥34.94, compared to a current price of ¥36.90 — trading 5.6% above its estimated fair value. The current ROA % is 2.91%, which is 72% below median its 10-year median of 10.46 and 0.3% above the Chemicals industry median of 2.90. Longyan Zhuoyue New Energy Co's overall GF Score™ is 85/100 with 10 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 Longyan Zhuoyue New Energy Co (SHSE:688196), the current ROA % is 2.91% 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 Longyan Zhuoyue New Energy Co (SHSE:688196) Overvalued in 2026?
Based on GuruFocus' analysis, Longyan Zhuoyue New Energy Co stock appears to be overvalued.
The current stock price of ¥36.90 is trading 5.6% above its estimated GF Value™ of ¥34.94.
GuruFocus considers Longyan Zhuoyue New Energy Co to be Fairly Valued.
Key valuation signals for SHSE:688196:
ROA %: 2.91% (72% below median its 10-year median of 10.46)
GF Value™: ¥34.94 vs. price of ¥36.90 (5.6% above fair value)
Industry Position: 0.3% above the Chemicals median (#761 of 1614)
No single metric tells the full story. See the SHSE:688196 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longyan Zhuoyue New Energy Co Business Description
Longyan Zhuoyue New Energy Co Ltd is a renewable company focusing on the manufacturing of biomass products, including biodiesel of UCOME, BGME, and PME, derivative industrial glycerin, biomass plasticizers, waterborne alkyd resin, and etc.
85GF Score
Get the complete analysis for SHSE:688196
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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