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Ashmore Group (LSE:ASHM) ROA % : 7.29% (As of Jun. 2024)


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What is Ashmore Group ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ashmore Group's annualized Net Income for the quarter that ended in Jun. 2024 was £71.0 Mil. Ashmore Group's average Total Assets over the quarter that ended in Jun. 2024 was £974.4 Mil. Therefore, Ashmore Group's annualized ROA % for the quarter that ended in Jun. 2024 was 7.29%.

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

LSE:ASHM' s ROA % Range Over the Past 10 Years
Min: 7.91   Med: 16.77   Max: 22.28
Current: 9.5

During the past 13 years, Ashmore Group's highest ROA % was 22.28%. The lowest was 7.91%. And the median was 16.77%.

LSE:ASHM's ROA % is ranked better than
75.06% of 1708 companies
in the Asset Management industry
Industry Median: 3.775 vs LSE:ASHM: 9.50

Ashmore Group ROA % Historical Data

The historical data trend for Ashmore Group'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.

Ashmore Group ROA % Chart

Ashmore Group Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.37 22.28 8.02 7.91 9.42

Ashmore Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -0.95 8.10 8.05 11.77 7.29

Competitive Comparison of Ashmore Group's ROA %

For the Asset Management subindustry, Ashmore Group'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.


Ashmore Group's ROA % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Ashmore Group's ROA % distribution charts can be found below:

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



Ashmore Group ROA % Calculation

Ashmore Group's annualized ROA % for the fiscal year that ended in Jun. 2024 is calculated as:

ROA %=Net Income (A: Jun. 2024 )/( (Total Assets (A: Jun. 2023 )+Total Assets (A: Jun. 2024 ))/ count )
=93.7/( (1008.7+979.7)/ 2 )
=93.7/994.2
=9.42 %

Ashmore Group's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Jun. 2024 ))/ count )
=71/( (969.1+979.7)/ 2 )
=71/974.4
=7.29 %

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


Ashmore Group  (LSE:ASHM) 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: Jun. 2024 )
=Net Income/Total Assets
=71/974.4
=(Net Income / Revenue)*(Revenue / Total Assets)
=(71 / 191.2)*(191.2 / 974.4)
=Net Margin %*Asset Turnover
=37.13 %*0.1962
=7.29 %

Note: The Net Income data used here is two times the semi-annual (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.


Ashmore Group ROA % Related Terms

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Ashmore Group Business Description

Traded in Other Exchanges
Address
61 Aldwych, London, GBR, WC2B 4AE
Ashmore Group PLC is a value-oriented asset management firm that focuses its investments on emerging markets. It offers a diverse range of both traditional and alternative investment strategies to a global client base, including both institutional and retail investors. The company invests in sovereign debt instruments, currencies, corporate debt, equities, derivatives, private equity, real estate, distressed debt, and other special situations. The firm reports on changes in assets under management as the majority of its revenue is derived from management fees. The company also benefits from performance fees on its investments.

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