ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Morgan Stanley's annualizedNet Income for the quarter that ended in Dec. 2023 was $6,068 Mil.
Morgan Stanley's average Total Assets over the quarter that ended in Dec. 2023 was $1,181,353 Mil. Therefore, Morgan Stanley's annualized ROA % for the quarter that ended in Dec. 2023 was 0.51%.
The historical rank and industry rank for Morgan Stanley's ROA % or its related term are showing as below:
MS'
s ROA % Range Over the Past 10 Years
Min: 0.42 Med: 0.85 Max: 1.31
Current: 0.81
During the past 13 years, Morgan Stanley's highest ROA % was 1.31%. The lowest was 0.42%. And the median was 0.85%.
MS's ROA % is ranked worse than 58.81% of 806
companies
in the Capital Markets industry
Industry Median: 1.385
vs MS: 0.81
Morgan Stanley ROA % Historical Data
The historical data trend for Morgan Stanley'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.
Morgan Stanley Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
ROA %
1.03
1.09
1.31
0.93
0.77
Morgan Stanley Quarterly Data
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Mar24
ROA %
1.00
0.74
0.83
0.51
1.14
Competitive Comparison
For the Capital Markets subindustry, Morgan Stanley'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.
Morgan Stanley ROA % Distribution
For the Capital Markets industry and Financial Services sector, Morgan Stanley's ROA % distribution charts can be found below:
* The bar in red indicates where Morgan Stanley's ROA % falls into.
Morgan Stanley ROA % Calculation
Morgan Stanley's annualized ROA % for the fiscal year that ended in Dec. 2023 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 (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Morgan Stanley (NYSE:MS) 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 (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.
Morgan Stanley ROA % Related Terms
Thank you for viewing the detailed overview of Morgan Stanley's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Morgan Stanley (Morgan Stanley) Business Description
Morgan Stanley is a global investment bank whose history, through its legacy firms, can be traced back to 1924. The company has institutional securities, wealth management, and investment management segments. The company had over $4 trillion of client assets as well as over 80,000 employees at the end of 2022. Approximately 50% of the company's net revenue is from its institutional securities business, with the remainder coming from wealth and investment management. The company derives about 30% of its total revenue outside the Americas.
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