ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Crimson Wine Group's annualizedNet Income for the quarter that ended in Dec. 2023 was $5.91 Mil.
Crimson Wine Group's average Total Assets over the quarter that ended in Dec. 2023 was $221.36 Mil. Therefore, Crimson Wine Group's annualized ROA % for the quarter that ended in Dec. 2023 was 2.67%.
The historical rank and industry rank for Crimson Wine Group's ROA % or its related term are showing as below:
CWGL'
s ROA % Range Over the Past 10 Years
Min: -2.74 Med: 1.38 Max: 2.39
Current: 1.43
During the past 13 years, Crimson Wine Group's highest ROA % was 2.39%. The lowest was -2.74%. And the median was 1.38%.
CWGL's ROA % is ranked worse than 64.49% of 214
companies
in the Beverages - Alcoholic industry
Industry Median: 3.6
vs CWGL: 1.43
Crimson Wine Group ROA % Historical Data
The historical data trend for Crimson Wine 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.
Competitive Comparison of Crimson Wine Group's ROA %
For the Beverages - Wineries & Distilleries subindustry, Crimson Wine 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.
Crimson Wine Group's ROA % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Crimson Wine Group's ROA % distribution charts can be found below:
* The bar in red indicates where Crimson Wine Group's ROA % falls into.
Crimson Wine Group ROA % Calculation
Crimson Wine Group's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
* 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.
Crimson Wine Group (OTCPK:CWGL) 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 banks 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:
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.
Crimson Wine Group ROA % Related Terms
Thank you for viewing the detailed overview of Crimson Wine Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Crimson Wine Group (Crimson Wine Group) Business Description
Crimson Wine Group Ltd is engaged in the business of producing and selling luxury wines. Its operating segments are Wholesale net sales and Direct to Consumer net sales. It generates revenues from sales of wine to wholesalers and directs to consumers, sales of bulk wine and grapes, custom winemaking services, special event fees, tasting fees, and retail sales. The company's wineries include wine brands of Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards, Seghesio Family Vineyards, Double Canyon, Seven Hills Winery, and Malene Wines.
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