ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hiap Teck Venture Bhd's annualizedNet Income for the quarter that ended in Oct. 2024 was RM139 Mil.
Hiap Teck Venture Bhd's average Total Assets over the quarter that ended in Oct. 2024 was RM2,164 Mil. Therefore, Hiap Teck Venture Bhd's annualized ROA % for the quarter that ended in Oct. 2024 was 6.41%.
The historical rank and industry rank for Hiap Teck Venture Bhd's ROA % or its related term are showing as below:
XKLS:5072'
s ROA % Range Over the Past 10 Years
Min: -6.86 Med: 1.6 Max: 10.73
Current: 7.27
During the past 13 years, Hiap Teck Venture Bhd's highest ROA % was 10.73%. The lowest was -6.86%. And the median was 1.60%.
XKLS:5072's ROA % is ranked better than 82.22% of 641
companies
in the Steel industry
Industry Median: 2.37
vs XKLS:5072: 7.27
* 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 Hiap Teck Venture Bhd's ROA %
For the Steel subindustry, Hiap Teck Venture Bhd'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.
Hiap Teck Venture Bhd's ROA % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Hiap Teck Venture Bhd's ROA % distribution charts can be found below:
* The bar in red indicates where Hiap Teck Venture Bhd's ROA % falls into.
Hiap Teck Venture Bhd ROA % Calculation
Hiap Teck Venture Bhd's annualized ROA % for the fiscal year that ended in Jul. 2024 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 (Oct. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Hiap Teck Venture Bhd (XKLS:5072) 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 (Oct. 2024) net income data. The Revenue data used here is four times the quarterly (Oct. 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.
Hiap Teck Venture Bhd ROA % Related Terms
Thank you for viewing the detailed overview of Hiap Teck Venture Bhd's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hiap Teck Venture Bhd is a Malaysia-based company. It has six segments. The Trading segment is involved in importing, exporting, general dealing, and leasing of steel products, hardware, and building materials; the Manufacturing segment is involved in manufacturing, selling, and renting pipes, hollow sections, scaffolding equipment, and other steel products; the Property and Investment segment is engaged in renting out property and investment holding; the Transportation segment includes a provision of transportation of goods by lorries; Mining and exploration segment consists of exploring, contracting and other activities related to the mining, processing, and sale of iron ore; and Selling of Elecricity. It generates a vast majority of the revenues from the Trading segment.
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