ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Xingfa Aluminium Holdings's annualizedNet Income for the quarter that ended in Dec. 2023 was HK$1,189 Mil.
Xingfa Aluminium Holdings's average Total Assets over the quarter that ended in Dec. 2023 was HK$14,350 Mil. Therefore, Xingfa Aluminium Holdings's annualized ROA % for the quarter that ended in Dec. 2023 was 8.29%.
The historical rank and industry rank for Xingfa Aluminium Holdings's ROA % or its related term are showing as below:
HKSE:00098'
s ROA % Range Over the Past 10 Years
Min: 3.73 Med: 6.52 Max: 9.74
Current: 6.25
During the past 13 years, Xingfa Aluminium Holdings's highest ROA % was 9.74%. The lowest was 3.73%. And the median was 6.52%.
HKSE:00098's ROA % is ranked better than 91.85% of 2710
companies
in the Metals & Mining industry
Industry Median: -15.055
vs HKSE:00098: 6.25
* 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 Xingfa Aluminium Holdings's ROA %
For the Aluminum subindustry, Xingfa Aluminium Holdings'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.
Xingfa Aluminium Holdings's ROA % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Xingfa Aluminium Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Xingfa Aluminium Holdings's ROA % falls into.
Xingfa Aluminium Holdings ROA % Calculation
Xingfa Aluminium Holdings'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 two times the semi-annual (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
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 two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.
Xingfa Aluminium Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Xingfa Aluminium Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Xingfa Aluminium Holdings (HKSE:00098) Business Description
Xingfa Aluminium Holdings Ltd is engaged in the manufacturing and sale of aluminum profiles which are used in construction and industrial materials. The segments of the company are Industrial aluminum profiles which manufacture and sell plain aluminum profiles, mainly for industrial usage. The construction aluminum profiles segment derives the majority of revenue manufacture and selling aluminum profiles with surface finishing, including anodic oxidation aluminum profiles, electrophoresis coating aluminum profiles and powder coating aluminum profiles. All other segments include the revenue generated from processing service contracts related to aluminum products, the sale of office premises and residential properties, and the sale of aluminum panels, aluminum alloy, molds, and spare parts.
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