ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Asahi Diamond Industrial Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円-4,568 Mil.
Asahi Diamond Industrial Co's average Total Assets over the quarter that ended in Mar. 2026 was 円78,167 Mil. Therefore, Asahi Diamond Industrial Co's annualized ROA % for the quarter that ended in Mar. 2026 was -5.84%.
The historical rank and industry rank for Asahi Diamond Industrial Co's ROA % or its related term are showing as below:
TSE:6140'
s ROA % Range Over the Past 10 Years
Min: -0.48 Med: 3 Max: 4.68
Current: 2.63
During the past 13 years, Asahi Diamond Industrial Co's highest ROA % was 4.68%. The lowest was -0.48%. And the median was 3.00%.
TSE:6140's ROA % is ranked worse than 53.16% of 3074
companies
in the Industrial Products industry
Industry Median: 3.045
vs TSE:6140: 2.63
Asahi Diamond Industrial Co (TSE:6140) 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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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.
* 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 Tools & Accessories subindustry, Asahi Diamond Industrial Co'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.
Asahi Diamond Industrial Co ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Asahi Diamond Industrial Co's ROA % distribution charts can be found below:
* The bar in red indicates where Asahi Diamond Industrial Co'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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Asahi Diamond Industrial Co (TSE:6140) has a ROA % of -5.84% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Asahi Diamond Industrial Co and its competitors. According to the industry distribution chart, Asahi Diamond Industrial Co ranks #1634 out of 3074 companies in the Industrial Products industry, placing it in the top 53.2%.
Is Asahi Diamond Industrial Co's ROA % too high?
Asahi Diamond Industrial Co's current ROA % is -5.84%. Based on the distribution chart, Asahi Diamond Industrial Co ranks #1634 out of 3074 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Asahi Diamond Industrial Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asahi Diamond Industrial Co's ROA % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Asahi Diamond Industrial Co ranks #1634 out of 3074 companies for ROA %. This places Asahi Diamond Industrial Co in the lower half of its industry. The industry median ROA % is 3.05. 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 3.05, based on 3,074 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 Asahi Diamond Industrial Co and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Asahi Diamond Industrial Co's current ROA % is -5.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asahi Diamond Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Asahi Diamond Industrial Co (TSE:6140) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,009.06, compared to a current price of 円1,227.00 — trading 21.6% above its estimated fair value. The current ROA % is -5.84%. Asahi Diamond Industrial Co's overall GF Score™ is 84/100 with 3 warning signs to review. 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 Asahi Diamond Industrial Co (TSE:6140), the current ROA % is -5.84% as of Mar. 2026. 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.
Is Asahi Diamond Industrial Co (TSE:6140) Overvalued in 2026?
Based on GuruFocus' analysis, Asahi Diamond Industrial Co stock appears to be overvalued.
The current stock price of 円1,227.00 is trading 21.6% above its estimated GF Value™ of 円1,009.06.
GuruFocus considers Asahi Diamond Industrial Co to be Modestly Overvalued.
Key valuation signals for TSE:6140:
ROA %: -5.84%
GF Value™: 円1,009.06 vs. price of 円1,227.00 (21.6% above fair value)
No single metric tells the full story. See the TSE:6140 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asahi Diamond Industrial Co Ltd is a Japan-based company engaged in the manufacture and sale of diamond tools. The company is involved in the production, sale, import, and export of various tools, instruments, and precision machines applicable for diamond and other high-hardness objects. It offers a range of product which includes blades, wheels, and cutters to dies and dressers. These products cater to various industries such as electronics and semiconductors, transportation machinery, stone and construction, and industrial materials.
84GF Score
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