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NEXE Innovations (TSXV:NEXE) ROA % : 24.39% (As of Aug. 2024)


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What is NEXE Innovations ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NEXE Innovations's annualized Net Income for the quarter that ended in Aug. 2024 was C$9.17 Mil. NEXE Innovations's average Total Assets over the quarter that ended in Aug. 2024 was C$37.61 Mil. Therefore, NEXE Innovations's annualized ROA % for the quarter that ended in Aug. 2024 was 24.39%.

The historical rank and industry rank for NEXE Innovations's ROA % or its related term are showing as below:

TSXV:NEXE' s ROA % Range Over the Past 10 Years
Min: -51.81   Med: -16.36   Max: -5.67
Current: -5.67

During the past 5 years, NEXE Innovations's highest ROA % was -5.67%. The lowest was -51.81%. And the median was -16.36%.

TSXV:NEXE's ROA % is ranked worse than
91.04% of 402 companies
in the Packaging & Containers industry
Industry Median: 3.06 vs TSXV:NEXE: -5.67

NEXE Innovations ROA % Historical Data

The historical data trend for NEXE Innovations'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.

NEXE Innovations ROA % Chart

NEXE Innovations Annual Data
Trend May20 May21 May22 May23 May24
ROA %
-25.32 -51.81 -15.61 -13.27 -16.36

NEXE Innovations Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 -19.37 -16.03 -11.72 -18.71 24.39

Competitive Comparison of NEXE Innovations's ROA %

For the Packaging & Containers subindustry, NEXE Innovations'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.


NEXE Innovations's ROA % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, NEXE Innovations's ROA % distribution charts can be found below:

* The bar in red indicates where NEXE Innovations's ROA % falls into.



NEXE Innovations ROA % Calculation

NEXE Innovations's annualized ROA % for the fiscal year that ended in May. 2024 is calculated as:

ROA %=Net Income (A: May. 2024 )/( (Total Assets (A: May. 2023 )+Total Assets (A: May. 2024 ))/ count )
=-6.531/( (43.358+36.487)/ 2 )
=-6.531/39.9225
=-16.36 %

NEXE Innovations's annualized ROA % for the quarter that ended in Aug. 2024 is calculated as:

ROA %=Net Income (Q: Aug. 2024 )/( (Total Assets (Q: May. 2024 )+Total Assets (Q: Aug. 2024 ))/ count )
=9.172/( (36.487+38.726)/ 2 )
=9.172/37.6065
=24.39 %

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


NEXE Innovations  (TSXV:NEXE) 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: Aug. 2024 )
=Net Income/Total Assets
=9.172/37.6065
=(Net Income / Revenue)*(Revenue / Total Assets)
=(9.172 / 0.012)*(0.012 / 37.6065)
=Net Margin %*Asset Turnover
=76433.33 %*0.0003
=24.39 %

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


NEXE Innovations ROA % Related Terms

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NEXE Innovations Business Description

Traded in Other Exchanges
Address
19355 22nd Avenue, Suite 109, Surrey, BC, CAN, V3Z 3S6
NEXE Innovations Inc is a plant-based compostable technology and materials manufacturing based in British Columbia, Canada. The company has developed patented, fully compostable, plant-based, single-serve coffee pods for use in single-serve coffee machines. The NEXE Pod is a fully compostable, single-use pod that offers the market an environmentally friendly alternative to the billions of plastic and aluminum pods.
Executives
Ashvani Guglani Director
Darren Footz 10% Security Holder, Director, Senior Officer
Rajwant Kang Senior Officer

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