ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Dai-ichi Life Holdings's annualizedNet Income for the quarter that ended in Dec. 2023 was 円241,964 Mil.
Dai-ichi Life Holdings's average Total Assets over the quarter that ended in Dec. 2023 was 円65,590,062 Mil. Therefore, Dai-ichi Life Holdings's annualized ROA % for the quarter that ended in Dec. 2023 was 0.37%.
The historical rank and industry rank for Dai-ichi Life Holdings's ROA % or its related term are showing as below:
TSE:8750'
s ROA % Range Over the Past 10 Years
Min: 0.06 Med: 0.39 Max: 0.69
Current: 0.4
During the past 13 years, Dai-ichi Life Holdings's highest ROA % was 0.69%. The lowest was 0.06%. And the median was 0.39%.
TSE:8750's ROA % is ranked worse than 77.91% of 489
companies
in the Insurance industry
Industry Median: 2.01
vs TSE:8750: 0.40
* 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.
Competitive Comparison of Dai-ichi Life Holdings's ROA %
For the Insurance - Life subindustry, Dai-ichi Life Holdings'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.
Dai-ichi Life Holdings's ROA % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Dai-ichi Life Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Dai-ichi Life Holdings's ROA % falls into.
Dai-ichi Life Holdings ROA % Calculation
Dai-ichi Life Holdings's annualized ROA % for the fiscal year that ended in Mar. 2023 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 four times the quarterly (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Dai-ichi Life Holdings (TSE:8750) 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 (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.
Dai-ichi Life Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Dai-ichi Life Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Dai-ichi Life Holdings (TSE:8750) Business Description
Dai-Ichi Life is Japan's second-largest life insurance company excluding recently privatized Japan Post Insurance, with a market share of slightly over 10%. Unlike its largest domestic competitors Nippon Life, Meiji Yasuda, and Sumitomo Life, which remain mutually owned by their policyholders, Dai-Ichi Life demutualized and listed on the Tokyo Stock Exchange in 2010. Its main domestic operating company accounts for around 60% of profits, its Frontier bancassurance subsidiary selling mainly savings products accounts for around 10%, Alabama-based Protective Life accounts for around 15%, TAL in Australia accounts for 7%, and Dai-Ichi Life Vietnam around 5%. Dai-Ichi also holds a 30% economic interest in Mizuho's Asset Management One.
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