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OMF (OneMain Holdings) ROA % : 2.48% (As of Sep. 2024)


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What is OneMain Holdings ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. OneMain Holdings's annualized Net Income for the quarter that ended in Sep. 2024 was $628 Mil. OneMain Holdings's average Total Assets over the quarter that ended in Sep. 2024 was $25,332 Mil. Therefore, OneMain Holdings's annualized ROA % for the quarter that ended in Sep. 2024 was 2.48%.

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

OMF' s ROA % Range Over the Past 10 Years
Min: -1.37   Med: 2.98   Max: 5.9
Current: 2.23

During the past 13 years, OneMain Holdings's highest ROA % was 5.90%. The lowest was -1.37%. And the median was 2.98%.

OMF's ROA % is ranked better than
58.06% of 546 companies
in the Credit Services industry
Industry Median: 1.77 vs OMF: 2.23

OneMain Holdings ROA % Historical Data

The historical data trend for OneMain Holdings'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.

OneMain Holdings ROA % Chart

OneMain Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.99 3.22 5.90 3.91 2.74

OneMain Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 3.26 2.73 2.57 1.16 2.48

Competitive Comparison of OneMain Holdings's ROA %

For the Credit Services subindustry, OneMain 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.


OneMain Holdings's ROA % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, OneMain Holdings's ROA % distribution charts can be found below:

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



OneMain Holdings ROA % Calculation

OneMain Holdings's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=641/( (22537+24294)/ 2 )
=641/23415.5
=2.74 %

OneMain Holdings's annualized ROA % for the quarter that ended in Sep. 2024 is calculated as:

ROA %=Net Income (Q: Sep. 2024 )/( (Total Assets (Q: Jun. 2024 )+Total Assets (Q: Sep. 2024 ))/ count )
=628/( (25085+25578)/ 2 )
=628/25331.5
=2.48 %

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


OneMain Holdings  (NYSE:OMF) 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: Sep. 2024 )
=Net Income/Total Assets
=628/25331.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(628 / 4656)*(4656 / 25331.5)
=Net Margin %*Asset Turnover
=13.49 %*0.1838
=2.48 %

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


OneMain Holdings ROA % Related Terms

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OneMain Holdings Business Description

Traded in Other Exchanges
Address
601 N.W. Second Street, Evansville, IN, USA, 47708
OneMain Holdings Inc is engaged in nonprime consumer finance companies in the United States and is one of only a few companies in the consumer installment lending industry. It formed after a transaction brought together two branch-based consumer finance companies with complementary strategies and locations. Its services include providing personal loan products, offering credit and noncredit insurance, servicing loans, pursuing strategic acquisitions and dispositions of assets and businesses, and on occasion, establishing joint ventures or forming strategic alliances. The company's one reportable segment is consumer and insurance. In addition to hundreds of branches, the company also has an online business. The main source of revenue is net interest income.
Executives
Douglas H. Shulman director, officer: President and CEO C/O ONEMAIN HOLDINGS, INC., 601 N.W. SECOND STREET, EVANSVILLE IN 47708
Michael A Hedlund officer: principal accounting officer C/O ONEMAIN HOLDINGS, INC., 601 N.W. SECOND STREET, EVANSVILLE IN 47708
Micah R. Conrad officer: EVP and CFO C/O ONEMAIN HOLDINGS, INC., 601 N.W. SECOND STREET, EVANSVILLE IN 47708
Rajive Chadha officer: Chief Operating Officer & EVP C/O ONEMAIN HOLDINGS, INC., 601 N.W. SECOND STREET, EVANSVILLE IN 47708
Toos Daruvala director 12 SYCAMORE ROAD, SCARSDALE NY 10583
Philip Bronner director C/O ONEMAIN HOLDINGS, INC., 601 N.W. SECOND STREET, EVANSVILLE IN 47708
Uniform Investco Sub L.p. other: See Remarks C/O VARDE PARTNERS, 901 MARQUETTE AVENUE SOUTH, SUITE 3300, MINNEAPOLIS MN 55402
Apollo Management Holdings Gp, Llc 10 percent owner 9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Phyllis R Caldwell director AMERICAN CAPITAL, LTD., 2 BETHESDA METRO CENTER, 12TH FLOOR, BETHESDA MD 20814
George G Hicks other: See Remarks 901 MARQUETTE AVENUE SOUTH, SUITE 3300, MINNEAPOLIS MN 55402
Jay N. Levine director, officer: President and CEO C/O ONEMAIN HOLDINGS, INC., 601 N.W. SECOND STREET, EVANSVILLE IN 47708
Lisa Green Hall director C/O ONEMAIN HOLDINGS, INC., 601 N.W. SECOND STREET, EVANSVILLE IN 47708
Richard A Smith director 175 PARK AVENUE, MADISON NJ 07940
Varde Investment Partners Ugp, Llc other: See Remarks C/O VARDE PARTNERS, 901 MARQUETTE AVENUE, SUITE 3300, MINNEAPOLIS MN 55402
Varde Skyway Fund Ugp, Llc other: See Remarks C/O VARDE PARTNERS, 901 MARQUETTE AVENUE, SUITE 3300, MINNEAPOLIS MN 55402