Altera (FRA:ALR) ROA % : 4.22% (As of Sep. 2015)

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What is Altera ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Altera's annualized Net Income for the quarter that ended in Sep. 2015 was €219 Mil. Altera's average Total Assets over the quarter that ended in Sep. 2015 was €5,199 Mil. Therefore, Altera's annualized ROA % for the quarter that ended in Sep. 2015 was 4.22%.

The historical rank and industry rank for Altera's ROA % or its related term are showing as below:

FRA:ALR' s ROA % Range Over the Past 10 Years
Min: 5.85 Med: 15.01 Max: 25.87
Current: 5.85

During the past 13 years, Altera's highest ROA % was 25.87%. The lowest was 5.85%. And the median was 15.01%.

FRA:ALR's ROA % is not ranked
in the Semiconductors industry.
Industry Median: 2.5 vs FRA:ALR: 5.85

Altera ROA % Historical Data

The historical data trend for Altera'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.

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Altera ROA % Chart

Altera Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROA %

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26.81

19.21

12.47

8.11

8.54

Altera Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
ROA %	Get a 7-Day Free Trial															8.36	7.93	7.06	4.78	4.22

Competitive Comparison of Altera's ROA %

For the Semiconductors subindustry, Altera'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.

Altera's ROA % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Altera's ROA % distribution charts can be found below:

* The bar in red indicates where Altera's ROA % falls into.

Altera ROA % Calculation

Altera's annualized ROA % for the fiscal year that ended in Dec. 2014 is calculated as:

ROA %	=	Net Income (A: Dec. 2014 )	/	( (Total Assets (A: Dec. 2013 )	+	Total Assets (A: Dec. 2014 ))	/ count )
	=	383.326	/	( (4376.823	+	4601.797)	/ 2 )
	=	383.326	/	4489.31
	=	8.54 %

Altera's annualized ROA % for the quarter that ended in Sep. 2015 is calculated as:

ROA %	=	Net Income (Q: Sep. 2015 )	/	( (Total Assets (Q: Jun. 2015 )	+	Total Assets (Q: Sep. 2015 ))	/ count )
	=	219.252	/	( (5153.95	+	5243.7)	/ 2 )
	=	219.252	/	5198.825
	=	4.22 %

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 (Sep. 2015) net income data. ROA % is displayed in the 30-year financial page.

Altera (FRA:ALR) 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:

	ROA %		(Q: Sep. 2015 )
=	Net Income	/	Total Assets
=	219.252	/	5198.825
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(219.252 / 1424.056)	*	(1424.056 / 5198.825)
=	Net Margin %	*	Asset Turnover
=	15.4 %	*	0.2739
=	4.22 %

Note: The Net Income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) revenue data.

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.

Altera ROA % Related Terms

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Altera (FRA:ALR) Business Description

Industry

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Comparable Companies

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Address

Website

http://www.altera.com

Altera Corp was founded in 1983 and reincorporated in the State of Delaware in 1997. It designs and sells programmable logic devices, HardCopy application-specific integrated circuit devices, power system-on-chip devices, pre-defined design building blocks known as intellectual property cores, and associated development tools. Its PLDs, which consist of field-programmable gate arrays, including those referred to as systems-on-chip FPGAs which incorporate hard embedded processor cores, and complex programmable logic devices. FPGAs and CPLDs are standard semiconductor integrated circuits that are manufactured as standard chips that its customers program to perform desired logic and processing functions within their electronic systems. With its HardCopy devices it offers its customers a migration path from a PLD to a low-cost, high-volume, non-programmable implementation of their designs. Its customers can license IP cores for implementation of standard functions in their PLD designs. Customers develop, compile, and verify their PLD designs, and then program their designs into its PLDs using its proprietary development software, which operates on personal computers and engineering workstations. Its products serve a range of customers within the Telecom and Wireless, Industrial Automation, Military and Automotive, Networking, Computer and Storage and Other vertical markets. Its geographical segments include US, Japan, China, Europe and Other. Its customers design electronic systems that typically use three types of digital integrated circuits: Processors, which include microprocessors, microcontrollers, graphics processors, and digital signal processors, control central computing tasks and signal processing; Memory stores programming instructions and data; and Logic manages the interchange and manipulation of digital signals within a system. It classifies its products into three categories: New, Mainstream, and Mature and Other Products. New Products include the Stratix V, Stratix IV, Arria 10, Arria V, Arria II, Cyclone V, Cyclone IV, MAX 10 FPGAs, MAX V CPLDs, HardCopy IV devices and Enpirion PowerSoCs. Mainstream Products include the Stratix III, Cyclone III, MAX II and HardCopy III devices. Mature and Other Products include the Stratix II, Stratix, Arria GX, Cyclone II, Cyclone, Classic, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEXseries, APEX series, Mercury, Excalibur devices, configuration and other devices, intellectual property cores, and software and other tools. The Company competes with PLD vendors such as Lattice Semiconductor Corporation, Microsemi Corporation, and Xilinx Inc. Other semiconductor companies with whom it may compete includes Analog Devices Inc., Atmel Corporation, Avago Technologies, Broadcom Corporation, Cavium, Inc., Freescale Semiconductor Inc., GlobalFoundries Inc., HiSilicon Technologies Company, Intel Corporation ("Intel"), Linear Technology Corporation