ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sole Elite Group's annualizedNet Income for the quarter that ended in Dec. 2014 was $28.79 Mil.
Sole Elite Group's average Total Assets over the quarter that ended in Dec. 2014 was $38.81 Mil. Therefore, Sole Elite Group's annualized ROA % for the quarter that ended in Dec. 2014 was 74.19%.
The historical rank and industry rank for Sole Elite Group's ROA % or its related term are showing as below:
SOLE's ROA % is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 1.95 * Ranked among companies with meaningful ROA % only.
Sole Elite Group (NAS:SOLE) 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 one times the annual (Dec. 2014) net income data. The Revenue data used here is one times the annual (Dec. 2014) 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.
Sole Elite Group ROA % Related Terms
Sole Elite Group ROA % Historical Data
* Premium members only.
The historical data trend for Sole Elite Group'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.
Sole Elite Group ROA % Chart
Sole Elite Group Annual Data
Trend
Dec12
Dec13
Dec14
ROA %
48.75
61.64
74.19
Sole Elite Group Semi-Annual Data
Dec12
Dec13
Dec14
ROA %
48.75
61.64
74.19
SOLE vs FORD, JCLY, TLF: ROA % Comparison
For the Footwear & Accessories subindustry, Sole Elite Group'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.
Sole Elite Group ROA % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sole Elite Group's ROA % distribution charts can be found below:
* The bar in red indicates where Sole Elite Group'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 one times the annual (Dec. 2014) net income data.
ROA % is displayed in the 30-year financial page.
Sole Elite Group (SOLE) has a ROA % of 74.19% as of Dec. 2014. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Sole Elite Group and its competitors.
Is Sole Elite Group's ROA % too high?
Sole Elite Group's current ROA % is 74.19%. The Manufacturing - Apparel & Accessories industry median ROA % is 1.95. Sole Elite Group's value of 74.19% is 3704.6% above this industry median.
How does Sole Elite Group's ROA % compare to FORD and JCLY?
Sole Elite Group's ROA % of 74.19% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROA % is 1.95. Sole Elite Group's value of 74.19% is 3704.6% 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 Manufacturing - Apparel & Accessories company?
The median ROA % among Manufacturing - Apparel & Accessories companies is 1.95, based on 1,069 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. Sole Elite Group's current ROA % of 74.19% is 3704.6% 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 Sole Elite Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROA % is 1.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sole Elite Group's current ROA % is 74.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sole Elite Group stock overvalued right now?
Sole Elite Group (SOLE) has a current ROA % of 74.19%. The current ROA % is 74.19% and 3704.6% above the Manufacturing - Apparel & Accessories industry median of 1.95. 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 Sole Elite Group (SOLE), the current ROA % is 74.19% as of Dec. 2014. 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.
Sole Elite Group Ltd was formed on December 10, 2014. The Company, through its subsidiaries, is engaged in the business of designing, producing and selling shoe soles. It has four product lines: RB soles, MD soles, single color IP sole and dual color IP sole products. Its manufacturing facilities in China are located in Jinjiang, Fujian Province, which has a high concentration of footwear industry participants. Sports shoe soles are made of various materials, such as EVA, RB, PU, TPE, and TPU. The core materials of shoe soles are EVA and RB. The principal raw materials used in the production of its products are EVA, rubber, TPU, color dyes and other chemical additives. Its raw materials are sourced suppliers in the PRC located in Quanzhou, Fujian Province, which is close to its production facilities. It sells products to sportswear manufacturers that are based in China, including a number of companies in the athletic wear market, including Li-Ning, 361º, ERKE and Anta. It also sells products to OEM footwear companies for international athletic brands, such as Taiwan Ching Luh, which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour in Asia. Customers use its products as components in the athletic footwear that it sells to end consumers, athletic wear companies and shoe distributors. Its customer includes Fujian Ching Luh Shoes Co., Ltd., which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour. Its direct competition comes from various shoe sole production companies in China, such as Multi Sports Holding Ltd., Victory New Materials Limited Company, Fenghua SoleTech AG, Tai Ya Shoes Co., Ltd., Mao Tai (Fujian) Soles Co., Ltd. and Xing Quan International Sports Holdings Limited. It currently hold four PRC patents. The Company is subject to all China's national and local laws and regulations, including those related to environmental protection, foreign currency, property ownership and taxation.
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