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Cheerwin Group (HKSE:06601) ROA % : 2.11% (As of Dec. 2023)


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What is Cheerwin Group ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Cheerwin Group's annualized Net Income for the quarter that ended in Dec. 2023 was HK$84 Mil. Cheerwin Group's average Total Assets over the quarter that ended in Dec. 2023 was HK$4,001 Mil. Therefore, Cheerwin Group's annualized ROA % for the quarter that ended in Dec. 2023 was 2.11%.

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

HKSE:06601' s ROA % Range Over the Past 10 Years
Min: 1.8   Med: 14.06   Max: 16.39
Current: 4.79

During the past 7 years, Cheerwin Group's highest ROA % was 16.39%. The lowest was 1.80%. And the median was 14.06%.

HKSE:06601's ROA % is ranked better than
61.8% of 1906 companies
in the Consumer Packaged Goods industry
Industry Median: 2.995 vs HKSE:06601: 4.79

Cheerwin Group ROA % Historical Data

The historical data trend for Cheerwin 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.

Cheerwin Group ROA % Chart

Cheerwin Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial 16.39 16.22 3.70 1.80 4.67

Cheerwin Group Semi-Annual Data
Dec17 Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -1.67 5.26 -1.35 7.65 2.11

Competitive Comparison of Cheerwin Group's ROA %

For the Household & Personal Products subindustry, Cheerwin 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.


Cheerwin Group's ROA % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Cheerwin Group's ROA % distribution charts can be found below:

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



Cheerwin Group ROA % Calculation

Cheerwin Group'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 )
=191.429/( (3995.783+4195.894)/ 2 )
=191.429/4095.8385
=4.67 %

Cheerwin Group's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Jun. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=84.252/( (3806.849+4195.894)/ 2 )
=84.252/4001.3715
=2.11 %

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


Cheerwin Group  (HKSE:06601) 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
=84.252/4001.3715
=(Net Income / Revenue)*(Revenue / Total Assets)
=(84.252 / 1056.206)*(1056.206 / 4001.3715)
=Net Margin %*Asset Turnover
=7.98 %*0.264
=2.11 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.


Cheerwin Group ROA % Related Terms

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Cheerwin Group (HKSE:06601) Business Description

Traded in Other Exchanges
N/A
Address
No. 2, Luju Road, Liwan District, Guangdong Province, Guangzhou, CHN, 510370
Cheerwin Group Ltd is an investment holding company. It is mainly manufacturing and trading of household insecticides and repellents, household cleaning, air care, personal care, pet care, and other products in China. company revenue is geographically derived from PRC.
Executives
Ubs Group Ag 2201 Interest of corporation controlled by you
Chen Kaichen
Chen Kaixuan
Li Ruohong
Ma Huizhen
Morgan Stanley & Co. International Plc 2105 Underwriter
Morgan Stanley International Holdings Inc. 2201 Interest of corporation controlled by you
Morgan Stanley International Limited 2201 Interest of corporation controlled by you
Morgan Stanley Investments (uk) 2201 Interest of corporation controlled by you
Chao Yun Huan Qiu You Xian Gong Si

Cheerwin Group (HKSE:06601) Headlines

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