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Tsubakimoto Chain Co (TSE:6371) ROA % : 4.98% (As of Dec. 2023)


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What is Tsubakimoto Chain Co ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tsubakimoto Chain Co's annualized Net Income for the quarter that ended in Dec. 2023 was 円18,656 Mil. Tsubakimoto Chain Co's average Total Assets over the quarter that ended in Dec. 2023 was 円374,358 Mil. Therefore, Tsubakimoto Chain Co's annualized ROA % for the quarter that ended in Dec. 2023 was 4.98%.

The historical rank and industry rank for Tsubakimoto Chain Co's ROA % or its related term are showing as below:

TSE:6371' s ROA % Range Over the Past 10 Years
Min: 2.9   Med: 4.63   Max: 5.81
Current: 4.1

During the past 13 years, Tsubakimoto Chain Co's highest ROA % was 5.81%. The lowest was 2.90%. And the median was 4.63%.

TSE:6371's ROA % is ranked better than
54.77% of 3018 companies
in the Industrial Products industry
Industry Median: 3.5 vs TSE:6371: 4.10

Tsubakimoto Chain Co ROA % Historical Data

The historical data trend for Tsubakimoto Chain Co'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.

Tsubakimoto Chain Co ROA % Chart

Tsubakimoto Chain Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.67 3.86 2.90 4.55 4.05

Tsubakimoto Chain Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 4.76 3.23 3.66 4.45 4.98

Competitive Comparison of Tsubakimoto Chain Co's ROA %

For the Specialty Industrial Machinery subindustry, Tsubakimoto Chain Co'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.


Tsubakimoto Chain Co's ROA % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Tsubakimoto Chain Co's ROA % distribution charts can be found below:

* The bar in red indicates where Tsubakimoto Chain Co's ROA % falls into.



Tsubakimoto Chain Co ROA % Calculation

Tsubakimoto Chain Co's annualized ROA % for the fiscal year that ended in Mar. 2023 is calculated as:

ROA %=Net Income (A: Mar. 2023 )/( (Total Assets (A: Mar. 2022 )+Total Assets (A: Mar. 2023 ))/ count )
=13742/( (332620+345878)/ 2 )
=13742/339249
=4.05 %

Tsubakimoto Chain Co's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=18656/( (374983+373733)/ 2 )
=18656/374358
=4.98 %

* 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 (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


Tsubakimoto Chain Co  (TSE:6371) 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: Dec. 2023 )
=Net Income/Total Assets
=18656/374358
=(Net Income / Revenue)*(Revenue / Total Assets)
=(18656 / 272184)*(272184 / 374358)
=Net Margin %*Asset Turnover
=6.85 %*0.7271
=4.98 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 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.


Tsubakimoto Chain Co ROA % Related Terms

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Tsubakimoto Chain Co (TSE:6371) Business Description

Traded in Other Exchanges
Address
Nakanoshima Mitsui Building, 6F, 3-3-3, Nakanoshima, Kita-ku, Osaka, JPN, 530-0005
Tsubakimoto Chain Co. is a Japan-based company that is engaged in manufacturing and sales of various variable speed drives, handling equipment and other related products and services. The company operates through four divisions. The Chain operation supplies chain products, including drive chains and conveyor chains. The Automotive Parts operation provides automotive timing drive systems, timing belts, long belts and others. The Power Transmission Unites and Component operation provides reducers, variable speed drives, motion control units and others. The Materials Handling Systems operation supplies sorting systems, conveyance systems, storage and picking systems and others. The company generates most of its revenue from Japan, America and Europe.

Tsubakimoto Chain Co (TSE:6371) Headlines

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