ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Asia Cork's annualizedNet Income for the quarter that ended in Dec. 2010 was €3.53 Mil.
Asia Cork's average Total Assets over the quarter that ended in Dec. 2010 was €21.46 Mil. Therefore, Asia Cork's annualized ROA % for the quarter that ended in Dec. 2010 was 16.44%.
The historical rank and industry rank for Asia Cork's ROA % or its related term are showing as below:
STU:6A3's ROA % is not ranked *
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 3.06 * Ranked among companies with meaningful ROA % only.
Asia Cork ROA % Historical Data
The historical data trend for Asia Cork'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 Furnishings, Fixtures & Appliances subindustry, Asia Cork'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.
Asia Cork's ROA % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Asia Cork's ROA % distribution charts can be found below:
* The bar in red indicates where Asia Cork's ROA % falls into.
Asia Cork ROA % Calculation
Asia Cork's annualized ROA % for the fiscal year that ended in Dec. 2010 is calculated as:
* 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. 2010) net income data.
ROA % is displayed in the 30-year financial page.
Asia Cork (STU:6A3) 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. 2010) net income data. The Revenue data used here is one times the annual (Dec. 2010) 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.
Asia Cork ROA % Related Terms
Thank you for viewing the detailed overview of Asia Cork's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Asia Cork Incorporated formerly known as Hankersen International Corp., was incorporated under the laws of the State of Delaware on August 1, 1996. On July 11, 2008, the Company's wholly owned subsidiary, Asia Cork Inc., was merged into its parent, the Company, in order to change the name of the Company, after approval by the Board of Directors of the Company according to the Delaware General Corporation Law. As permitted by Delaware General Corporation Law, the Company assumed the name of its wholly owned subsidiary following the merger and now operates under the name Asia Cork Inc. The Company through its subsidiaries is engaged in the development, manufacture and distribution of cork products including cork wood floor, wall and decorating materials. It produces approximately seven series of cork flooring planks with over approximately 50 different patterns, colors and granules. It produces approximately 16 types of cork wallboard and approximately three types of cork art crafts with different patterns. It products include Cork Granule, Cork Sheet and Roll, Glue-down Floor, Floating Floor, Cork Wallboard and Basic Board. All these products utilize staining technology to create different colors. Its cork art crafts include ornaments and decorations. Wallboard could also be used as decorative material. It also sells semi-finished cork products to other manufacturers which use cork granule and sheet roll as raw materials. Cork granule comes in varies sizes and is the early stage of cork material processing. It sells its products directly to customers in China through its own sales team, and it distributes its products to customers overseas through unrelated distributors and sales agents. The countries in which its products were distributed through these sales agents include India, the United States of America, Germany and Japan. The Company competes with Portugal cork manufacturers as its major product is cork stopper used for wine bottles, which usually accounts for one third of its total sales and even higher percentage of profit. Domestically, the Company competes with local mid-sized cork manufacturers. These companies' products are semi-finished cork boards, sheets and roles.
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