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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hangzhou Raycloud Technology Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥24.1 Mil.
Hangzhou Raycloud Technology Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥1,764.3 Mil. Therefore, Hangzhou Raycloud Technology Co's annualized ROA % for the quarter that ended in Mar. 2026 was 1.37%.
SHSE:688365'
s ROA % Range Over the Past 10 Years
Min: -12.77 Med: 2.92 Max: 22.38
Current: -0.41
During the past 10 years, Hangzhou Raycloud Technology Co's highest ROA % was 22.38%. The lowest was -12.77%. And the median was 2.92%.
SHSE:688365's ROA % is ranked worse than 58.62% of 2890
companies
in the Software industry
Industry Median: 1.705
vs SHSE:688365: -0.41
Hangzhou Raycloud Technology Co (SHSE:688365) 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.
Hangzhou Raycloud Technology Co ROA % Related Terms
Hangzhou Raycloud Technology 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 Software - Application subindustry, Hangzhou Raycloud Technology 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.
Hangzhou Raycloud Technology Co ROA % vs Software Industry
For the Software industry and Technology sector, Hangzhou Raycloud Technology Co's ROA % distribution charts can be found below:
* The bar in red indicates where Hangzhou Raycloud Technology 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.
Hangzhou Raycloud Technology Co (SHSE:688365) has a ROA % of 1.37% 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 Hangzhou Raycloud Technology Co and its competitors. This is 53% below median its historical median of 2.92. According to the industry distribution chart, Hangzhou Raycloud Technology Co ranks #1694 out of 2890 companies in the Software industry, placing it in the top 58.6%.
Is Hangzhou Raycloud Technology Co's ROA % too high?
Hangzhou Raycloud Technology Co's current ROA % of 1.37% is 53% below median its 10-year median of 2.92. The Software industry median ROA % is 1.71. Hangzhou Raycloud Technology Co's value of 1.37% is 19.6% below this industry median. Based on the distribution chart, Hangzhou Raycloud Technology Co ranks #1694 out of 2890 companies in the Software industry, which is below the industry midpoint. Overall, Hangzhou Raycloud Technology Co has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou Raycloud Technology Co's ROA % compare to UBER and SHOP?
According to the Software industry distribution chart, Hangzhou Raycloud Technology Co ranks #1694 out of 2890 companies for ROA %. This places Hangzhou Raycloud Technology Co in the lower half of its industry. The industry median ROA % is 1.71. Hangzhou Raycloud Technology Co's value of 1.37% is 19.6% below this benchmark. While the company's 10-year median is 2.92 vs. the industry median of 1.71, Hangzhou Raycloud Technology 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 Software company?
The median ROA % among Software companies is 1.71, based on 2,890 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. Hangzhou Raycloud Technology Co's current ROA % of 1.37% is 19.6% 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 Hangzhou Raycloud Technology Co and its competitors. For the Software industry, the median ROA % is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou Raycloud Technology Co's current ROA % is 1.37%, which is 53% below median its own 10-year median of 2.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou Raycloud Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou Raycloud Technology Co (SHSE:688365) is currently considered Fairly Valued. The stock's GF Value™ is ¥13.11, compared to a current price of ¥13.60 — trading 3.7% above its estimated fair value. The current ROA % is 1.37%, which is 53% below median its 10-year median of 2.92 and 19.6% below the Software industry median of 1.71. Hangzhou Raycloud Technology Co's overall GF Score™ is 63/100 with 4 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 Hangzhou Raycloud Technology Co (SHSE:688365), the current ROA % is 1.37% 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 Hangzhou Raycloud Technology Co (SHSE:688365) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou Raycloud Technology Co stock appears to be overvalued.
The current stock price of ¥13.60 is trading 3.7% above its estimated GF Value™ of ¥13.11.
GuruFocus considers Hangzhou Raycloud Technology Co to be Fairly Valued.
Key valuation signals for SHSE:688365:
ROA %: 1.37% (53% below median its 10-year median of 2.92)
GF Value™: ¥13.11 vs. price of ¥13.60 (3.7% above fair value)
Industry Position: 19.6% below the Software median (#1694 of 2890)
No single metric tells the full story. See the SHSE:688365 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou Raycloud Technology Co Business Description
Hangzhou Raycloud Technology Co Ltd is an e-commerce software and service technology company. It provides value-added products and services such as SaaS products, supporting hardware, operating services, and CRM SMS for e-commerce merchants based on e-commerce platforms. Its products and services include super manager, courier assistant, wangdian transaction, wangdian data, merchandise, prosperous store promotion, super store manager-cross-border edition, super express, super commodity, super deal and seller network.
63GF Score
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