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KEYS (Keysight Technologies) ROA % : 17.00% (As of Jul. 2024)


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What is Keysight Technologies ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Keysight Technologies's annualized Net Income for the quarter that ended in Jul. 2024 was $1,556 Mil. Keysight Technologies's average Total Assets over the quarter that ended in Jul. 2024 was $9,156 Mil. Therefore, Keysight Technologies's annualized ROA % for the quarter that ended in Jul. 2024 was 17.00%.

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

KEYS' s ROA % Range Over the Past 10 Years
Min: 2.1   Med: 10.95   Max: 15.65
Current: 10.17

During the past 13 years, Keysight Technologies's highest ROA % was 15.65%. The lowest was 2.10%. And the median was 10.95%.

KEYS's ROA % is ranked better than
89.89% of 2462 companies
in the Hardware industry
Industry Median: 2.395 vs KEYS: 10.17

Keysight Technologies ROA % Historical Data

The historical data trend for Keysight Technologies'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.

* Premium members only.

Keysight Technologies ROA % Chart

Keysight Technologies Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.98 9.06 11.92 14.16 12.60

Keysight Technologies Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.14 10.33 7.76 5.59 17.00

Competitive Comparison of Keysight Technologies's ROA %

For the Scientific & Technical Instruments subindustry, Keysight Technologies'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.


Keysight Technologies's ROA % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Keysight Technologies's ROA % distribution charts can be found below:

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



Keysight Technologies ROA % Calculation

Keysight Technologies's annualized ROA % for the fiscal year that ended in Oct. 2023 is calculated as:

ROA %=Net Income (A: Oct. 2023 )/( (Total Assets (A: Oct. 2022 )+Total Assets (A: Oct. 2023 ))/ count )
=1057/( (8098+8683)/ 2 )
=1057/8390.5
=12.60 %

Keysight Technologies's annualized ROA % for the quarter that ended in Jul. 2024 is calculated as:

ROA %=Net Income (Q: Jul. 2024 )/( (Total Assets (Q: Apr. 2024 )+Total Assets (Q: Jul. 2024 ))/ count )
=1556/( (8988+9323)/ 2 )
=1556/9155.5
=17.00 %

* 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 (Jul. 2024) net income data. ROA % is displayed in the 30-year financial page.


Keysight Technologies  (NYSE:KEYS) 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 bank’s 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: Jul. 2024 )
=Net Income/Total Assets
=1556/9155.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1556 / 4868)*(4868 / 9155.5)
=Net Margin %*Asset Turnover
=31.96 %*0.5317
=17.00 %

Note: The Net Income data used here is four times the quarterly (Jul. 2024) net income data. The Revenue data used here is four times the quarterly (Jul. 2024) 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.


Keysight Technologies ROA % Related Terms

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Keysight Technologies Business Description

Address
1400 Fountaingrove Parkway, Santa Rosa, CA, USA, 95403-1738
Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight's solutions include testing tools, analytical software, and services. The firm's stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.
Executives
Richard P Hamada director 2211 S 47TH ST, PHOENIX AZ 85034
Lisa M. Poole officer: VP and Controller 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Kevin A Stephens director 1220 AUGUSTA DRIVE, SUITE 600, HOUSTON TX 77057
Kailash Narayanan officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Ronald S. Nersesian director, officer: CEO 5301 STEVENS CREEK BLVD., MS 1A-LC, SANTA CLARA CA 95051
Neil Dougherty officer: SVP & CFO 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Huei Sin Ee officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Jeffrey K Li officer: SVP and Secretary 1400 FOUNTAINGROVE PKWY, SANTA ROSA CA 95403
John Page officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Soon Chai Gooi officer: SVP 5301 STEVENS CREEK BLVD., SANTA CLARA CA 95051
James Cullen director 5301 STEVENS CREEK BLVD, MS 1A-LC, SANTA CLARA CA 95051
Satish Dhanasekaran officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Charles J Dockendorff director COVIDIEN LTD., 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Ingrid A Estrada officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
John C. Skinner officer: VP & Controller 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403