ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hawaiian Electric Industries's annualizedNet Income for the quarter that ended in Dec. 2023 was $197 Mil.
Hawaiian Electric Industries's average Total Assets over the quarter that ended in Dec. 2023 was $17,118 Mil. Therefore, Hawaiian Electric Industries's annualized ROA % for the quarter that ended in Dec. 2023 was 1.15%.
The historical rank and industry rank for Hawaiian Electric Industries's ROA % or its related term are showing as below:
HE'
s ROA % Range Over the Past 10 Years
Min: 1.2 Med: 1.55 Max: 2.07
Current: 1.2
During the past 13 years, Hawaiian Electric Industries's highest ROA % was 2.07%. The lowest was 1.20%. And the median was 1.55%.
HE's ROA % is ranked worse than 75.58% of 520
companies
in the Utilities - Regulated industry
Industry Median: 2.945
vs HE: 1.20
Hawaiian Electric Industries ROA % Historical Data
The historical data trend for Hawaiian Electric Industries'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.
Competitive Comparison of Hawaiian Electric Industries's ROA %
For the Utilities - Regulated Electric subindustry, Hawaiian Electric Industries'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.
Hawaiian Electric Industries's ROA % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hawaiian Electric Industries's ROA % distribution charts can be found below:
* The bar in red indicates where Hawaiian Electric Industries's ROA % falls into.
Hawaiian Electric Industries ROA % Calculation
Hawaiian Electric Industries'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.
Hawaiian Electric Industries (NYSE:HE) 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.
Hawaiian Electric Industries ROA % Related Terms
Thank you for viewing the detailed overview of Hawaiian Electric Industries's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hawaiian Electric Industries (Hawaiian Electric Industries) Business Description
Hawaiian Electric Industries is the parent company of three Hawaii-based regulated utilities and Hawaii's American Savings Bank. The utilities provide electricity on the five islands of Oahu, Hawaii, Maui, Molokai, and Lanai. Nearly 40% of electricity in its service territory comes from renewable energy; this portion is growing rapidly as the state has set a goal of 100% by 2045.
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