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Savanna Energy Services (TSX:SVY) ROA % : -9.66% (As of Mar. 2017)


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What is Savanna Energy Services ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Savanna Energy Services's annualized Net Income for the quarter that ended in Mar. 2017 was C$-79.0 Mil. Savanna Energy Services's average Total Assets over the quarter that ended in Mar. 2017 was C$818.5 Mil. Therefore, Savanna Energy Services's annualized ROA % for the quarter that ended in Mar. 2017 was -9.66%.

The historical rank and industry rank for Savanna Energy Services's ROA % or its related term are showing as below:

TSX:SVY's ROA % is not ranked *
in the Oil & Gas industry.
Industry Median: 2.45
* Ranked among companies with meaningful ROA % only.

Savanna Energy Services ROA % Historical Data

The historical data trend for Savanna Energy Services'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.

Savanna Energy Services ROA % Chart

Savanna Energy Services Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.91 2.22 -19.36 -16.67 -6.62

Savanna Energy Services Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 -4.68 -7.81 -5.58 -9.42 -9.66

Competitive Comparison of Savanna Energy Services's ROA %

For the Oil & Gas Drilling subindustry, Savanna Energy Services'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.


Savanna Energy Services's ROA % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Savanna Energy Services's ROA % distribution charts can be found below:

* The bar in red indicates where Savanna Energy Services's ROA % falls into.



Savanna Energy Services ROA % Calculation

Savanna Energy Services's annualized ROA % for the fiscal year that ended in Dec. 2016 is calculated as:

ROA %=Net Income (A: Dec. 2016 )/( (Total Assets (A: Dec. 2015 )+Total Assets (A: Dec. 2016 ))/ count )
=-56.004/( (879.146+813.876)/ 2 )
=-56.004/846.511
=-6.62 %

Savanna Energy Services's annualized ROA % for the quarter that ended in Mar. 2017 is calculated as:

ROA %=Net Income (Q: Mar. 2017 )/( (Total Assets (Q: Dec. 2016 )+Total Assets (Q: Mar. 2017 ))/ count )
=-79.048/( (813.876+823.068)/ 2 )
=-79.048/818.472
=-9.66 %

* 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. 2017) net income data. ROA % is displayed in the 30-year financial page.


Savanna Energy Services  (TSX:SVY) 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. 2017 )
=Net Income/Total Assets
=-79.048/818.472
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-79.048 / 469.276)*(469.276 / 818.472)
=Net Margin %*Asset Turnover
=-16.84 %*0.5734
=-9.66 %

Note: The Net Income data used here is four times the quarterly (Mar. 2017) net income data. The Revenue data used here is four times the quarterly (Mar. 2017) 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.


Savanna Energy Services ROA % Related Terms

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Savanna Energy Services (TSX:SVY) Business Description

Traded in Other Exchanges
N/A
Address
Savanna Energy Services Corp was incorporated under the Alberta Business Corporations Act on March 22, 2001. It is a drilling, well servicing and oilfield rentals company with operations in Canada, the United States and Australia. It provides a variety of services in the oil and natural gas industry. The corporate segment provides management and administrative services to all of the Company's subsidiaries and their respective operations. The services segment provides well servicing services and rental equipment to the oil and gas industry. The drilling segment provides contract drilling services to the oil and gas industry. The Company's overall business is conducted through two divisions: contract drilling and oilfield services. The Company's equipment fleet is among the newest and technically in the industry and its commitment to talent and technology has enabled the Company to build a presence within the oilfield services sector. It has also expanded its customer base to international markets, diversifying geographically into growing and emerging markets. The Company operates through a number of wholly-owned subsidiaries and several partnerships with Aboriginal communities that are partially owned by the Company.

Savanna Energy Services (TSX:SVY) Headlines

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