ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The RMR Group's annualizedNet Income for the quarter that ended in Dec. 2023 was $28.0 Mil.
The RMR Group's average Total Assets over the quarter that ended in Dec. 2023 was $603.9 Mil. Therefore, The RMR Group's annualized ROA % for the quarter that ended in Dec. 2023 was 4.63%.
The historical rank and industry rank for The RMR Group's ROA % or its related term are showing as below:
RMR'
s ROA % Range Over the Past 10 Years
Min: 2.47 Med: 8.35 Max: 21.63
Current: 9.74
During the past 11 years, The RMR Group's highest ROA % was 21.63%. The lowest was 2.47%. And the median was 8.35%.
RMR's ROA % is ranked better than 92.35% of 1830
companies
in the Real Estate industry
Industry Median: 1.18
vs RMR: 9.74
The RMR Group ROA % Historical Data
The historical data trend for The RMR 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.
For the Real Estate Services subindustry, The RMR 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.
The RMR Group's ROA % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, The RMR Group's ROA % distribution charts can be found below:
* The bar in red indicates where The RMR Group's ROA % falls into.
The RMR Group ROA % Calculation
The RMR Group's annualized ROA % for the fiscal year that ended in Sep. 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.
The RMR Group (NAS:RMR) 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.
The RMR Group ROA % Related Terms
Thank you for viewing the detailed overview of The RMR Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
The RMR Group (The RMR Group) Business Description
The RMR Group Inc is a holding company that conducts its business through its subsidiary, which is an alternative asset management company that invests in real estate and manages real estate-related businesses. Its business consists of providing management services to publicly owned real estate investment trusts, or REITs, and real estate-related operating companies. It also provides management services to real estate securities mutual funds and commercial real estate finance companies. The company's operating segment is RMR LLC and All Other Operations. The RMR Group derives its revenue from providing business and property management services as well as advisory and other services.
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