ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Silvergate Capital's annualizedNet Income for the quarter that ended in Sep. 2022 was $173.31 Mil.
Silvergate Capital's average Total Assets over the quarter that ended in Sep. 2022 was $15,683.92 Mil. Therefore, Silvergate Capital's annualized ROA % for the quarter that ended in Sep. 2022 was 1.11%.
The historical rank and industry rank for Silvergate Capital's ROA % or its related term are showing as below:
SICP's ROA % is not ranked *
in the Banks industry.
Industry Median: 0.98 * Ranked among companies with meaningful ROA % only.
Silvergate Capital (OTCPK:SICP) 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 (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 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.
Silvergate Capital ROA % Related Terms
Silvergate Capital ROA % Historical Data
* Premium members only.
The historical data trend for Silvergate Capital'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, Silvergate Capital'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.
Silvergate Capital ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Silvergate Capital's ROA % distribution charts can be found below:
* The bar in red indicates where Silvergate Capital'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 (Sep. 2022) net income data.
ROA % is displayed in the 30-year financial page.
Silvergate Capital (SICP) has a ROA % of 1.11% as of Sep. 2022. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Silvergate Capital and its competitors.
Is Silvergate Capital's ROA % too high?
Silvergate Capital's current ROA % is 1.11%. The Banks industry median ROA % is 0.98. Silvergate Capital's value of 1.11% is 13.3% above this industry median. Overall, Silvergate Capital has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Silvergate Capital's ROA % compare to LBNW and TCNB?
Silvergate Capital's ROA % of 1.11% can be compared against companies in the Banks industry. The industry median ROA % is 0.98. Silvergate Capital's value of 1.11% is 13.3% 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 1,528 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. Silvergate Capital's current ROA % of 1.11% is 13.3% 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 Silvergate Capital 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. Silvergate Capital's current ROA % is 1.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silvergate Capital stock overvalued right now?
Silvergate Capital (SICP) has a current ROA % of 1.11%. The current ROA % is 1.11% and 13.3% above the Banks industry median of 0.98. Silvergate Capital'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 Silvergate Capital (SICP), the current ROA % is 1.11% as of Sep. 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.
Silvergate Capital Corp is a provider of various financial infrastructure solutions and services. Its solutions and service offerings include Silvergate Exchange Network, Cash Management Solutions and Deposit Account Services. Its customers include U.S. exchanges and global investors in the digital currency industry. The company also provides financial services that include commercial banking, business lending, commercial and residential real estate lending, and mortgage warehouse lending.
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