ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. SmartCool Systems's annualizedNet Income for the quarter that ended in Sep. 2019 was $-0.07 Mil.
SmartCool Systems's average Total Assets over the quarter that ended in Sep. 2019 was $0.78 Mil. Therefore, SmartCool Systems's annualized ROA % for the quarter that ended in Sep. 2019 was -8.73%.
The historical rank and industry rank for SmartCool Systems's ROA % or its related term are showing as below:
SSCFF's ROA % is not ranked *
in the Industrial Products industry.
Industry Median: 3.06 * Ranked among companies with meaningful ROA % only.
SmartCool Systems (OTCPK:SSCFF) 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. 2019) net income data. The Revenue data used here is four times the quarterly (Sep. 2019) 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.
SmartCool Systems ROA % Related Terms
SmartCool Systems ROA % Historical Data
* Premium members only.
The historical data trend for SmartCool Systems'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 Electrical Equipment & Parts subindustry, SmartCool Systems'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.
SmartCool Systems ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, SmartCool Systems's ROA % distribution charts can be found below:
* The bar in red indicates where SmartCool Systems'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. 2019) net income data.
ROA % is displayed in the 30-year financial page.
SmartCool Systems (SSCFF) has a ROA % of -8.73% as of Sep. 2019. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on SmartCool Systems and its competitors.
Is SmartCool Systems' ROA % too high?
SmartCool Systems' current ROA % is -8.73%. Overall, SmartCool Systems has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does SmartCool Systems' ROA % compare to HUBB?
SmartCool Systems' ROA % of -8.73% can be compared against companies in the Industrial Products industry. The industry median ROA % is 3.06. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,081 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. 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 SmartCool Systems and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SmartCool Systems's current ROA % is -8.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SmartCool Systems stock overvalued right now?
SmartCool Systems (SSCFF) has a current ROA % of -8.73%. The current ROA % is -8.73%. SmartCool Systems' 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 SmartCool Systems (SSCFF), the current ROA % is -8.73% as of Sep. 2019. 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.
SmartCool Systems Inc is a clean technology company. The firm and its subsidiaries are focused on acquiring, commercializing, and marketing energy-saving technologies for commercial and retail businesses. The company has two principal revenue streams namely ESM and ECO3. The ESM is manufactured by a third party in Australia and is designed specifically to reduce the electricity consumption and demand for refrigeration and air conditioning compressors by improving their performance and maintaining temperature control. ECO3 is manufactured in China and is a retrofit product that can be installed on any air conditioning or refrigeration unit, achieving energy efficiency gains as the ESM for smaller systems. The firm generates most of its revenue from Europe, the Middle East, and Africa.
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