GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Wells Fargo & Co (NYSE:WFC) » Definitions » ROA %

Wells Fargo (Wells Fargo) ROA % : 0.95% (As of Mar. 2024)


View and export this data going back to 1962. Start your Free Trial

What is Wells Fargo ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Wells Fargo's annualized Net Income for the quarter that ended in Mar. 2024 was $18,476 Mil. Wells Fargo's average Total Assets over the quarter that ended in Mar. 2024 was $1,945,811 Mil. Therefore, Wells Fargo's annualized ROA % for the quarter that ended in Mar. 2024 was 0.95%.

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

WFC' s ROA % Range Over the Past 10 Years
Min: 0.17   Med: 1.14   Max: 1.44
Current: 0.98

During the past 13 years, Wells Fargo's highest ROA % was 1.44%. The lowest was 0.17%. And the median was 1.14%.

WFC's ROA % is ranked better than
56.08% of 1464 companies
in the Banks industry
Industry Median: 0.89 vs WFC: 0.98

Wells Fargo ROA % Historical Data

The historical data trend for Wells Fargo'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.

Wells Fargo ROA % Chart

Wells Fargo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.03 0.17 1.13 0.71 1.00

Wells Fargo Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 1.06 1.05 1.22 0.72 0.95

Competitive Comparison of Wells Fargo's ROA %

For the Banks - Diversified subindustry, Wells Fargo'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.


Wells Fargo's ROA % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Wells Fargo's ROA % distribution charts can be found below:

* The bar in red indicates where Wells Fargo's ROA % falls into.



Wells Fargo ROA % Calculation

Wells Fargo's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=19142/( (1881020+1932468)/ 2 )
=19142/1906744
=1.00 %

Wells Fargo's annualized ROA % for the quarter that ended in Mar. 2024 is calculated as:

ROA %=Net Income (Q: Mar. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Mar. 2024 ))/ count )
=18476/( (1932468+1959153)/ 2 )
=18476/1945810.5
=0.95 %

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


Wells Fargo  (NYSE:WFC) 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. 2024 )
=Net Income/Total Assets
=18476/1945810.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(18476 / 83452)*(83452 / 1945810.5)
=Net Margin %*Asset Turnover
=22.14 %*0.0429
=0.95 %

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


Wells Fargo ROA % Related Terms

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


Wells Fargo (Wells Fargo) Business Description

Address
420 Montgomery Street, San Francisco, CA, USA, 94104
Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company has four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.
Executives
Richard K Davis director 800 NICOLLET MALL, MINNEAPOLIS MN 55402
Thomas R Nides officer: Vice Chairman C/O WELLS FARGO & COMPANY, 420 MONTGOMERY STREET, SAN FRANCISCO CA 94104
Tracy M Kerrins officer: Sr. Executive Vice President 300 S BREVARD STREET, CHARLOTTE NC 28202
Kyle G Hranicky officer: Sr. Executive Vice President 1000 LOUISIANA STREET, HOUSTON TX 77002
Felicia F Norwood director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Kleber Santos officer: Sr. Executive Vice President 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ellen R Patterson officer: Sr. EVP and General Counsel 30 HUDSON YARDS, NEW YORK NY 10001
Kristy Fercho officer: Sr. Executive Vice President 5151 CORPORATE DRIVE, TROY MI 48098
Cecelia Morken director 26025 MUREAU ROAD, CALABASAS CA 91302
Beurden Saul Van officer: Sr. Executive Vice President 150 EAST 42ND STREET, NEW YORK NY 10017
Bei Ling officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Ather Iii Williams officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Michael P. Santomassimo officer: Sr. EVP & CFO 225 LIBERTY STREET, NEW YORK NY 10286
Mark A Chancy director 303 PEACHTREE ST., 30TH FLOOR, ATLANTA GA 30308
Lester Owens officer: Sr. Executive Vice President 240 GREENWICH STREET, NEW YORK NY 10286