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Eurasia Drilling Co (LSE:EDCL) ROA % : 6.56% (As of Jun. 2015)


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What is Eurasia Drilling Co ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Eurasia Drilling Co's annualized Net Income for the quarter that ended in Jun. 2015 was $181 Mil. Eurasia Drilling Co's average Total Assets over the quarter that ended in Jun. 2015 was $2,763 Mil. Therefore, Eurasia Drilling Co's annualized ROA % for the quarter that ended in Jun. 2015 was 6.56%.

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

LSE:EDCL' s ROA % Range Over the Past 10 Years
Min: 10.02   Med: 12.96   Max: 16.95
Current: 10.02

During the past 9 years, Eurasia Drilling Co's highest ROA % was 16.95%. The lowest was 10.02%. And the median was 12.96%.

LSE:EDCL's ROA % is not ranked
in the Oil & Gas industry.
Industry Median: 2.58 vs LSE:EDCL: 10.02

Eurasia Drilling Co ROA % Historical Data

The historical data trend for Eurasia Drilling 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.

Eurasia Drilling Co ROA % Chart

Eurasia Drilling Co Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROA %
Get a 7-Day Free Trial Premium Member Only 11.93 12.44 13.55 12.79 13.13

Eurasia Drilling Co Semi-Annual Data
Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.15 11.83 10.75 13.63 6.56

Competitive Comparison of Eurasia Drilling Co's ROA %

For the Oil & Gas Drilling subindustry, Eurasia Drilling 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.


Eurasia Drilling Co's ROA % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Eurasia Drilling Co's ROA % distribution charts can be found below:

* The bar in red indicates where Eurasia Drilling Co's ROA % falls into.



Eurasia Drilling Co ROA % Calculation

Eurasia Drilling Co's annualized ROA % for the fiscal year that ended in Dec. 2014 is calculated as:

ROA %=Net Income (A: Dec. 2014 )/( (Total Assets (A: Dec. 2013 )+Total Assets (A: Dec. 2014 ))/ count )
=420.788/( (3721.733+2685.913)/ 2 )
=420.788/3203.823
=13.13 %

Eurasia Drilling Co's annualized ROA % for the quarter that ended in Jun. 2015 is calculated as:

ROA %=Net Income (Q: Jun. 2015 )/( (Total Assets (Q: Dec. 2014 )+Total Assets (Q: Jun. 2015 ))/ count )
=181.116/( (2685.913+2839.248)/ 2 )
=181.116/2762.5805
=6.56 %

* 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. 2015) net income data. ROA % is displayed in the 30-year financial page.


Eurasia Drilling Co  (LSE:EDCL) 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. 2015 )
=Net Income/Total Assets
=181.116/2762.5805
=(Net Income / Revenue)*(Revenue / Total Assets)
=(181.116 / 1845.406)*(1845.406 / 2762.5805)
=Net Margin %*Asset Turnover
=9.81 %*0.668
=6.56 %

Note: The Net Income data used here is two times the semi-annual (Jun. 2015) net income data. The Revenue data used here is two times the semi-annual (Jun. 2015) 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.


Eurasia Drilling Co ROA % Related Terms

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Eurasia Drilling Co (LSE:EDCL) Business Description

Traded in Other Exchanges
N/A
Address
Eurasia Drilling Co Ltd was incorporated on November 25, 2002 under the Law of the Cayman Islands. The Company is engaged in providing exploratory and developmental drilling and oil and gas field services to companies operating within the Russian Federation, Kazakhstan, Iraq and the Caspian Sea region. The Company operates in two operating and geographical segments: onshore drilling conducted in the CIS and off-shore drilling conducted in the Caspian Sea.

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