GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » China National Accord Medicines Corp Ltd (SZSE:000028) » Definitions » ROA %

China National Accord Medicines (SZSE:000028) ROA % : 3.14% (As of Mar. 2024)


View and export this data going back to 1993. Start your Free Trial

What is China National Accord Medicines ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China National Accord Medicines's annualized Net Income for the quarter that ended in Mar. 2024 was ¥1,555 Mil. China National Accord Medicines's average Total Assets over the quarter that ended in Mar. 2024 was ¥49,548 Mil. Therefore, China National Accord Medicines's annualized ROA % for the quarter that ended in Mar. 2024 was 3.14%.

The historical rank and industry rank for China National Accord Medicines's ROA % or its related term are showing as below:

SZSE:000028' s ROA % Range Over the Past 10 Years
Min: 3.24   Med: 4.38   Max: 5.7
Current: 3.28

During the past 13 years, China National Accord Medicines's highest ROA % was 5.70%. The lowest was 3.24%. And the median was 4.38%.

SZSE:000028's ROA % is ranked better than
63.27% of 98 companies
in the Medical Distribution industry
Industry Median: 2.26 vs SZSE:000028: 3.28

China National Accord Medicines ROA % Historical Data

The historical data trend for China National Accord Medicines'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.

* Premium members only.

China National Accord Medicines ROA % Chart

China National Accord Medicines Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.03 3.81 3.24 3.48 3.55

China National Accord Medicines Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.20 3.83 2.86 3.33 3.14

Competitive Comparison of China National Accord Medicines's ROA %

For the Medical Distribution subindustry, China National Accord Medicines'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.


China National Accord Medicines's ROA % Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, China National Accord Medicines's ROA % distribution charts can be found below:

* The bar in red indicates where China National Accord Medicines's ROA % falls into.



China National Accord Medicines ROA % Calculation

China National Accord Medicines's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=1599.256/( (42615.761+47571.095)/ 2 )
=1599.256/45093.428
=3.55 %

China National Accord Medicines's annualized ROA % for the quarter that ended in Mar. 2024 is calculated as:

ROA %=Net Income (Q: Mar. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Mar. 2024 ))/ count )
=1555.084/( (47571.095+51524.997)/ 2 )
=1555.084/49548.046
=3.14 %

* 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. 2024) net income data. ROA % is displayed in the 30-year financial page.


China National Accord Medicines  (SZSE:000028) 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 bank’s 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:

ROA %(Q: Mar. 2024 )
=Net Income/Total Assets
=1555.084/49548.046
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1555.084 / 76361.924)*(76361.924 / 49548.046)
=Net Margin %*Asset Turnover
=2.04 %*1.5412
=3.14 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) 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.


China National Accord Medicines ROA % Related Terms

Thank you for viewing the detailed overview of China National Accord Medicines's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


China National Accord Medicines (SZSE:000028) Business Description

Traded in Other Exchanges
Address
No. 15, Ba Gua Si 4th Road, Accord Pharmaceutical Building, Futian District, Guangdong Province, Shenzhen, CHN, 518029
China National Accord Medicines Corp Ltd develops and manufactures pharmaceuticals in China. The company engaged in the wholesale of Chinese patent drugs, traditional Chinese medicines, chemical medicine preparations, antibiotics, biochemical drugs and cerebrovascular system drugs. It operates through the following segments: The Head office segment engages in investing and managing the business; The Pharmaceutical Distribution segment engages in the distribution of medicine and pharmaceutical products to customers, including hospitals, other distributors, retail drug stores, and clinics, and Retail pharmacy segment, which is managing the operation of Guoda Pharmacy. It generates maximum revenue from the Pharmaceutical Distribution segment.

China National Accord Medicines (SZSE:000028) Headlines

No Headlines