ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Arnest One's annualizedNet Income for the quarter that ended in Dec. 2013 was 円12,532 Mil.
Arnest One's average Total Assets over the quarter that ended in Dec. 2013 was 円115,602 Mil. Therefore, Arnest One's annualized ROA % for the quarter that ended in Dec. 2013 was 10.84%.
The historical rank and industry rank for Arnest One's ROA % or its related term are showing as below:
TSE:8895'
s ROA % Range Over the Past 10 Years
Min: 15.07 Med: 18.51 Max: 24.8
Current: 15.32
During the past 9 years, Arnest One's highest ROA % was 24.80%. The lowest was 15.07%. And the median was 18.51%.
TSE:8895's ROA % is not ranked
in the Homebuilding & Construction industry.
Industry Median: 3.87
vs TSE:8895: 15.32
Arnest One ROA % Historical Data
The historical data trend for Arnest One'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.
For the Residential Construction subindustry, Arnest One'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.
Arnest One's ROA % Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Arnest One's ROA % distribution charts can be found below:
* The bar in red indicates where Arnest One's ROA % falls into.
Arnest One ROA % Calculation
Arnest One's annualized ROA % for the fiscal year that ended in Mar. 2013 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. 2013) net income data.
ROA % is displayed in the 30-year financial page.
Arnest One (TSE:8895) 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. 2013) net income data. The Revenue data used here is four times the quarterly (Dec. 2013) 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.
Arnest One ROA % Related Terms
Thank you for viewing the detailed overview of Arnest One's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Arnest One Corp is a Japanese company mainly engaged in subdividing and selling single-family home and condominiums. The company also provides construction works as a contractor. Its business is classified into three groups, Single-Family Homes, Condominiums and other related business.
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