Inspur Digital Enterprise Technology (XTER:L1CC) ROA %: 1.24% (As of Dec. 2025)— 62% Below Median
What is Inspur Digital Enterprise Technology ROA %?
Inspur Digital Enterprise TechnologyXTER:L1CC 65 ROA % is 1.24% as of Dec. 2025, which is 62% below its 10-year median of 3.23. GuruFocus rates XTER:L1CC with a GF Score™ of 65/100. The stock has 8 warning signs investors should review. Among 2,881 Software companies, Inspur Digital Enterprise Technology ranks better than 55.85% on this metric.
XTER:L1CC's ROA % is ranked better than 55.85% of 2881
companies
in the Software industry
Industry Median: 1.65
vs XTER:L1CC: 2.79
Inspur Digital Enterprise Technology (XTER:L1CC) 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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
Inspur Digital Enterprise Technology ROA % Related Terms
Inspur Digital Enterprise Technology ROA % Historical 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.
For the Software - Application subindustry, Inspur Digital Enterprise Technology'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.
Inspur Digital Enterprise Technology ROA % vs Software Industry
* 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 two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Inspur Digital Enterprise Technology (XTER:L1CC) has a ROA % of 1.24% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Inspur Digital Enterprise Technology and its competitors. This is 62% below median its historical median of 3.23. According to the industry distribution chart, Inspur Digital Enterprise Technology ranks #1272 out of 2881 companies in the Software industry, placing it in the top 44.2%.
Is Inspur Digital Enterprise Technology's ROA % too high?
Inspur Digital Enterprise Technology's current ROA % of 1.24% is 62% below median its 10-year median of 3.23. The Software industry median ROA % is 1.65. Inspur Digital Enterprise Technology's value of 1.24% is 24.8% below this industry median. Based on the distribution chart, Inspur Digital Enterprise Technology ranks #1272 out of 2881 companies in the Software industry, which is above the industry midpoint. Overall, Inspur Digital Enterprise Technology has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Inspur Digital Enterprise Technology's ROA % compare to UBER and SHOP?
According to the Software industry distribution chart, Inspur Digital Enterprise Technology ranks #1272 out of 2881 companies for ROA %. This puts Inspur Digital Enterprise Technology in the upper half of its industry. The industry median ROA % is 1.65. Inspur Digital Enterprise Technology's value of 1.24% is 24.8% below this benchmark. While the company's 10-year median is 3.23 vs. the industry median of 1.65, Inspur Digital Enterprise Technology has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Software company?
The median ROA % among Software companies is 1.65, based on 2,881 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Inspur Digital Enterprise Technology's current ROA % of 1.24% is 24.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Inspur Digital Enterprise Technology and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inspur Digital Enterprise Technology's current ROA % is 1.24%, which is 62% below median its own 10-year median of 3.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inspur Digital Enterprise Technology stock overvalued right now?
Inspur Digital Enterprise Technology (XTER:L1CC) has a current ROA % of 1.24%. The current ROA % is 1.24%, which is 62% below median its 10-year median of 3.23 and 24.8% below the Software industry median of 1.65. Inspur Digital Enterprise Technology's overall GF Score™ is 65/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Inspur Digital Enterprise Technology (XTER:L1CC), the current ROA % is 1.24% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Inspur Digital Enterprise Technology Business Description
Inspur Digital Enterprise Technology Ltd is an investment holding company. The company's segments are Cloud services, Management software, and the Internet of Things. The Cloud services segment includes the provision of cloud services. The management software segment involves the provision of software development and other software services, whereas the Internet of Things segment is engaged in the provision of data centre engineering services and sales of IT peripherals and software. Geographically, the firm generates a majority of its revenue from Mainland China, and also has its presence in Hong Kong and Other countries.
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