ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Aerojet Rocketdyne Holdings's annualizedNet Income for the quarter that ended in Mar. 2023 was $111 Mil.
Aerojet Rocketdyne Holdings's average Total Assets over the quarter that ended in Mar. 2023 was $2,342 Mil. Therefore, Aerojet Rocketdyne Holdings's annualized ROA % for the quarter that ended in Mar. 2023 was 4.75%.
The historical rank and industry rank for Aerojet Rocketdyne Holdings's ROA % or its related term are showing as below:
AJRD'
s ROA % Range Over the Past 10 Years
Min: -2.72 Med: 4 Max: 12.18
Current: 3.12
During the past 13 years, Aerojet Rocketdyne Holdings's highest ROA % was 12.18%. The lowest was -2.72%. And the median was 4.00%.
AJRD's ROA % is not ranked
in the Aerospace & Defense industry.
Industry Median: 2.295
vs AJRD: 3.12
* 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 Aerojet Rocketdyne Holdings's ROA %
For the Aerospace & Defense subindustry, Aerojet Rocketdyne Holdings'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.
Aerojet Rocketdyne Holdings's ROA % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Aerojet Rocketdyne Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Aerojet Rocketdyne Holdings's ROA % falls into.
Aerojet Rocketdyne Holdings ROA % Calculation
Aerojet Rocketdyne Holdings's annualized ROA % for the fiscal year that ended in Dec. 2022 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 (Mar. 2023) net income data.
ROA % is displayed in the 30-year financial page.
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 (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
Aerojet Rocketdyne Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Aerojet Rocketdyne Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aerojet Rocketdyne Holdings (Aerojet Rocketdyne Holdings) Business Description
Aerojet Rocketdyne Holdings Inc manufactures aerospace and defense products and systems. It produces driving and launch systems for defense and space applications, weapons, and weapons systems for tactical missions. The systems can provide directional control for rockets, satellites, missiles, and other technical products. It operates in two segments: aerospace and defense, and real estate. The company manufactures its aerospace and defense products for the U.S. government, the National Aeronautics and Space Administration, aerospace and defense prime contractors, and portions of the commercial sector. The real estate segment focuses on rezoning, entitlement, sale, and leasing of real estate assets. The company's excess real estate is primarily located in California.
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