ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Differ Group Auto's annualizedNet Income for the quarter that ended in Jun. 2023 was HK$-300 Mil.
Differ Group Auto's average Total Assets over the quarter that ended in Jun. 2023 was HK$9,781 Mil. Therefore, Differ Group Auto's annualized ROA % for the quarter that ended in Jun. 2023 was -3.07%.
The historical rank and industry rank for Differ Group Auto's ROA % or its related term are showing as below:
HKSE:06878'
s ROA % Range Over the Past 10 Years
Min: -4.39 Med: 5.61 Max: 12.05
Current: -4.39
During the past 11 years, Differ Group Auto's highest ROA % was 12.05%. The lowest was -4.39%. And the median was 5.61%.
HKSE:06878's ROA % is ranked worse than 85.53% of 539
companies
in the Credit Services industry
Industry Median: 1.79
vs HKSE:06878: -4.39
Differ Group Auto ROA % Historical Data
The historical data trend for Differ Group Auto'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 Differ Group Auto's ROA %
For the Credit Services subindustry, Differ Group Auto'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.
Differ Group Auto's ROA % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Differ Group Auto's ROA % distribution charts can be found below:
* The bar in red indicates where Differ Group Auto's ROA % falls into.
Differ Group Auto ROA % Calculation
Differ Group Auto's annualized ROA % for the fiscal year that ended in Dec. 2022 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 (Jun. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Differ Group Auto (HKSE:06878) 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 two times the semi-annual (Jun. 2023) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
Differ Group Auto ROA % Related Terms
Thank you for viewing the detailed overview of Differ Group Auto's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Differ Group Auto (HKSE:06878) Business Description
Differ Group Auto Ltd, formerly Differ Group Holding Co Ltd provides finance leases to corporate customers, which are mainly small and medium enterprises, incorporated and operating in Mainland China. The reportable segments of the Group are, Financial services segment includes the provision of guarantee services, express loan services, consultancy services, finance lease services, financial securities services, and assets management in the PRC and Hong Kong; Property development and investment segment includes property development projects and property investment activities in the PRC; Trading of commodities segment includes trading of commodities in the PRC; and Automobile e-commerce includes online e-commerce platform in the automobile industry in the PRC.
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