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WDFC (WD-40 Co) ROA % : 15.04% (As of Aug. 2024)


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What is WD-40 Co ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. WD-40 Co's annualized Net Income for the quarter that ended in Aug. 2024 was $67.1 Mil. WD-40 Co's average Total Assets over the quarter that ended in Aug. 2024 was $446.3 Mil. Therefore, WD-40 Co's annualized ROA % for the quarter that ended in Aug. 2024 was 15.04%.

The historical rank and industry rank for WD-40 Co's ROA % or its related term are showing as below:

WDFC' s ROA % Range Over the Past 10 Years
Min: 13.05   Med: 15.64   Max: 18.99
Current: 15.8

During the past 13 years, WD-40 Co's highest ROA % was 18.99%. The lowest was 13.05%. And the median was 15.64%.

WDFC's ROA % is ranked better than
96.79% of 1558 companies
in the Chemicals industry
Industry Median: 2.85 vs WDFC: 15.80

WD-40 Co ROA % Historical Data

The historical data trend for WD-40 Co'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.

WD-40 Co ROA % Chart

WD-40 Co Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.25 17.72 15.58 15.13 15.70

WD-40 Co 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 15.14 16.10 14.24 17.92 15.04

Competitive Comparison of WD-40 Co's ROA %

For the Specialty Chemicals subindustry, WD-40 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.


WD-40 Co's ROA % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, WD-40 Co's ROA % distribution charts can be found below:

* The bar in red indicates where WD-40 Co's ROA % falls into.



WD-40 Co ROA % Calculation

WD-40 Co's annualized ROA % for the fiscal year that ended in Aug. 2024 is calculated as:

ROA %=Net Income (A: Aug. 2024 )/( (Total Assets (A: Aug. 2023 )+Total Assets (A: Aug. 2024 ))/ count )
=69.644/( (437.966+449.039)/ 2 )
=69.644/443.5025
=15.70 %

WD-40 Co'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 )
=67.136/( (443.61+449.039)/ 2 )
=67.136/446.3245
=15.04 %

* 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.


WD-40 Co  (NAS:WDFC) 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
=67.136/446.3245
=(Net Income / Revenue)*(Revenue / Total Assets)
=(67.136 / 623.964)*(623.964 / 446.3245)
=Net Margin %*Asset Turnover
=10.76 %*1.398
=15.04 %

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.


WD-40 Co ROA % Related Terms

Thank you for viewing the detailed overview of WD-40 Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


WD-40 Co Business Description

Traded in Other Exchanges
Address
9715 Businesspark Avenue, San Diego, CA, USA, 92131
WD-40 Co manufactures and sells lubricants and cleaning products. The firm's product categories include maintenance and cleaning products. Maintenance products include the WD-40 signature brand aerosol spray lubricant as well as degreasers, rust removers, and bicycle maintenance products. Cleaning products include toilet cleaners, carpet stain removers and deodorizers, and heavy-duty hand soaps used to clean grease. The company organizes itself into three segments based on geography: Americas, Europe/Middle East/Africa, and Asia-Pacific. The majority of the company's revenue comes from the Americas segment, which includes the United States, Canada, and Latin America.
Executives
William B Noble officer: Group MD, EMEA & Emerging Mkts BRICK CLOSE, KIIN FARM, MILTON KEYNES X0 MK1 13LJ
Sara Kathleen Hyzer officer: VP, Finance & CFO C/O: WD-40 COMPANY, 9715 BUSINESSPARK AVE., SAN DIEGO CA 92131
Steven A Brass director, officer: President and CEO WD-40 COMPANY, 1061 CUDAHY PLACE, SAN DIEGO CA 92110
David Pendarvis director REDMED INC, 14040 DANLELSON ST, POWAY CA 92064
Jeffrey G Lindeman officer: VP, Chief People, Cult. & Cap. 9715 BUSINESSPARK AVENUE, SAN DIEGO CA 92131
Phenix Q. Kiamilev officer: VP, General Counsel & Corp Sec 9715 BUSINESSPARK AVENUE, SAN DIEGO CA 92131
Patricia Q Olsem officer: Division President, Americas 9715 BUSINESSPARK AVENUE, SAN DIEGO CA 92131
Cynthia Burks director C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Geoffrey Holdsworth officer: Managing Director AsiaPacific 27 MUNGARRA AVENUE, ST. IVES, SYDNEY C3 2075
Eric Etchart director ROOM F, 22F CROSS REGION PLAZA, 899 LINGLING ROAD, SHANGHAI F4 200030
Magee Edward O Jr director 9715 BUSINESSPARK AVENUE, SAN DIEGO CA 92131
Richard T Clampitt officer: VP, General Counsel WD-40 COMPANY, 1061 CUDAHY PLACE, SAN DIEGO CA 92110
Garry O Ridge director, officer: President & CEO 1061 CUDAHY PL, SAN DIEGO CA 92110
Lara L Lee director C/O MARRONE BIO INNOVATIONS, INC., 1540 DREW AVENUE, DAVIS CA 95618
Jay Rembolt officer: Principal Accounting Officer 1061 CUDAHY PL, SAN DIEGO CA 92110