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REZI (Resideo Technologies) ROA % : 1.65% (As of Jun. 2024)


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What is Resideo Technologies ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Resideo Technologies's annualized Net Income for the quarter that ended in Jun. 2024 was $120 Mil. Resideo Technologies's average Total Assets over the quarter that ended in Jun. 2024 was $7,252 Mil. Therefore, Resideo Technologies's annualized ROA % for the quarter that ended in Jun. 2024 was 1.65%.

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

REZI' s ROA % Range Over the Past 10 Years
Min: -8.99   Med: 3.67   Max: 8.58
Current: 2.58

During the past 9 years, Resideo Technologies's highest ROA % was 8.58%. The lowest was -8.99%. And the median was 3.67%.

REZI's ROA % is ranked worse than
63.58% of 151 companies
in the Industrial Distribution industry
Industry Median: 4.13 vs REZI: 2.58

Resideo Technologies ROA % Historical Data

The historical data trend for Resideo 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.

Resideo Technologies ROA % Chart

Resideo Technologies Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only 0.71 0.69 4.22 4.62 3.22

Resideo Technologies Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 3.09 1.29 5.01 2.61 1.65

Competitive Comparison of Resideo Technologies's ROA %

For the Industrial Distribution subindustry, Resideo 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.


Resideo Technologies's ROA % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Resideo Technologies's ROA % distribution charts can be found below:

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



Resideo Technologies ROA % Calculation

Resideo Technologies'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 )
=210/( (6387+6645)/ 2 )
=210/6516
=3.22 %

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

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Mar. 2024 )+Total Assets (Q: Jun. 2024 ))/ count )
=120/( (6520+7984)/ 2 )
=120/7252
=1.65 %

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


Resideo Technologies  (NYSE:REZI) 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
=120/7252
=(Net Income / Revenue)*(Revenue / Total Assets)
=(120 / 6356)*(6356 / 7252)
=Net Margin %*Asset Turnover
=1.89 %*0.8764
=1.65 %

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


Resideo Technologies ROA % Related Terms

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Resideo Technologies Business Description

Traded in Other Exchanges
N/A
Address
16100 North 71st Street, Suite 550, Scottsdale, AZ, USA, 85254
Resideo Technologies Inc is a manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions. The company has two reportable segments; Products and Solutions segment offers temperature and humidity control, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety products, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, and ADI Global Distribution segment includes wholesale distributor of low-voltage security products including access control, fire detection, security, and video products. It derives majority of its revenue from the United States.
Executives
Tina M Beskid officer: Chief Accounting Officer 1835 DUEBER AVENUE, S.W., CANTON OH 44706
Jack R Lazar director 400 W. CESAR CHAVEZ, ATTN: STOCK ADMINISTRATION, AUSTIN TX 78701
Nina Richardson director C/O SILICON LABORATORIES, 400 W CESAR CHAVEZ, AUSTIN TX 78701
Phillip L. Theodore officer: Pres., Products & Solutions 901 E. 6TH STREET, AUSTIN TX 78701
Jay L Geldmacher director, officer: President and CEO 5810 VAN ALLEN WAY, CARLSBAD CA 92008
Jeannine J Lane officer: See Remarks 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Robert B Aarnes officer: PRESIDENT, ADI 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Dana Edward Huth officer: EVP, Chief Revenue Officer 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Anthony L Trunzo officer: EVP, Chief Financial Officer 27700 SW PARKWAY AVENUE, WILSONVILLE OR 97070
Kareem Yusuf director 901 E. 6TH STREET, AUSTIN TX 78701
Travis D Merrill officer: EVP, Chief Strat & Cml Officer 27700 SW PARKWAY AVE., WILSONVILLE OR 97070
Roger Fradin director C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Paul F Deninger director C/O JEFFERIES & CO., 1050 WINTER STREET, WALTHAM MA 02451
Andrew C Teich director 3 HANSON DRIVE, MOULTONBOROUGH NH 03254
Brian Kushner director 527 MADISON AVENUE 6TH FLOOR, NEW YORK NY 10022