ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Snowflake's annualizedNet Income for the quarter that ended in Jan. 2024 was $-677 Mil.
Snowflake's average Total Assets over the quarter that ended in Jan. 2024 was $7,744 Mil. Therefore, Snowflake's annualized ROA % for the quarter that ended in Jan. 2024 was -8.75%.
The historical rank and industry rank for Snowflake's ROA % or its related term are showing as below:
SNOW'
s ROA % Range Over the Past 10 Years
Min: -39.23 Med: -13.32 Max: -10.49
Current: -10.95
During the past 6 years, Snowflake's highest ROA % was -10.49%. The lowest was -39.23%. And the median was -13.32%.
SNOW's ROA % is ranked worse than 72.55% of 2823
companies
in the Software industry
Industry Median: 0.96
vs SNOW: -10.95
Snowflake ROA % Historical Data
The historical data trend for Snowflake'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.
Snowflake Annual Data
Trend
Jan19
Jan20
Jan21
Jan22
Jan23
Jan24
ROA %
-39.23
-15.55
-10.82
-11.09
-10.49
Snowflake Quarterly Data
Jan19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
ROA %
-11.14
-11.90
-12.13
-11.60
-8.75
Competitive Comparison
For the Software - Application subindustry, Snowflake'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.
Snowflake ROA % Distribution
For the Software industry and Technology sector, Snowflake's ROA % distribution charts can be found below:
* The bar in red indicates where Snowflake's ROA % falls into.
Snowflake ROA % Calculation
Snowflake's annualized ROA % for the fiscal year that ended in Jan. 2024 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 (Jan. 2024) net income data.
ROA % is displayed in the 30-year financial page.
Snowflake (NYSE:SNOW) 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 (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 2024) 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.
Snowflake ROA % Related Terms
Thank you for viewing the detailed overview of Snowflake's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 2012, Snowflake is a data lake, warehousing, and sharing company that came public in 2020. To date, the company has over 3,000 customers, including nearly 30% of the Fortune 500 as its customers. Snowflake's data lake stores unstructured and semistructured data that can then be used in analytics to create insights stored in its data warehouse. Snowflake's data sharing capability allows enterprises to easily buy and ingest data almost instantaneously compared with a traditionally months-long process. Overall, the company is known for the fact that all of its data solutions that can be hosted on various public clouds.
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