ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. American Independence's annualizedNet Income for the quarter that ended in Jun. 2016 was $5.3 Mil.
American Independence's average Total Assets over the quarter that ended in Jun. 2016 was $365.7 Mil. Therefore, American Independence's annualized ROA % for the quarter that ended in Jun. 2016 was 1.45%.
The historical rank and industry rank for American Independence's ROA % or its related term are showing as below:
AMIC's ROA % is not ranked *
in the Insurance industry.
Industry Median: 2.02 * Ranked among companies with meaningful ROA % only.
* 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 American Independence's ROA %
For the Insurance - Life subindustry, American Independence'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.
American Independence's ROA % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, American Independence's ROA % distribution charts can be found below:
* The bar in red indicates where American Independence's ROA % falls into.
American Independence ROA % Calculation
American Independence's annualized ROA % for the fiscal year that ended in Dec. 2015 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 (Jun. 2016) net income data.
ROA % is displayed in the 30-year financial page.
American Independence (NAS:AMIC) 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 (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 2016) 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.
American Independence ROA % Related Terms
Thank you for viewing the detailed overview of American Independence's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
American Independence (American Independence) Business Description
American Independence Corp is a Delaware corporation. The Company is an insurance holding Company, which provides specialized health coverage and related services to commercial customers and individuals. The Company focuses on niche health products and/or narrowly defined distribution channels in the United States. It's wholly owned subsidiary, Independence American Insurance Company, markets its products through IHC Risk Solutions, LLC, IHC Specialty Benefits, Inc., and IPA Family, LLC, which are subsidiaries of AMIC, and through independent brokers, producers and agents. Independence American is licensed to write property and/or casualty insurance in all 50 states and the District of Columbia, and has an A- (Excellent) rating from A.M. Best Company, Inc. Risk Solutions is a full-service direct writer of medical stop-loss insurance for self-insured employer groups. Risk Solutions has offices near Hartford, Connecticut and Philadelphia, Pennsylvania, and markets and underwrites employer medical stop-loss and group life mainly for Standard Security Life Insurance Company of New York. It also writes, to a much lesser extent, for three other carriers, including Madison National Life Insurance Company, Inc. and Independence American. Independence Holding Company and its subsidiaries including, among others, Standard Security Life and Madison National Life are collectively referred to as "IHC". Independence American writes group important medical, medical stop-loss, crucial medical plans for individuals and families, short-term medical, and dental, and began writing pet insurance in 2012.Independence American competes with many larger insurance and reinsurance companies and managed care organizations. Risk Solutions competes with many other managing general underwriters, insurance companies, and MCOs. AMIC is an insurance holding company; as such, AMIC and its subsidiaries are subject to regulation and supervision by multiple state insurance regulators, including the Office of the Insurance Commissioner of the State of Delaware.
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