ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shoals Technologies Group's annualizedNet Income for the quarter that ended in Dec. 2023 was $66.3 Mil.
Shoals Technologies Group's average Total Assets over the quarter that ended in Dec. 2023 was $842.1 Mil. Therefore, Shoals Technologies Group's annualized ROA % for the quarter that ended in Dec. 2023 was 7.88%.
The historical rank and industry rank for Shoals Technologies Group's ROA % or its related term are showing as below:
SHLS'
s ROA % Range Over the Past 10 Years
Min: 0.76 Med: 9.52 Max: 24.99
Current: 5.12
During the past 6 years, Shoals Technologies Group's highest ROA % was 24.99%. The lowest was 0.76%. And the median was 9.52%.
SHLS's ROA % is ranked better than 64.56% of 996
companies
in the Semiconductors industry
Industry Median: 2.4
vs SHLS: 5.12
* 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 Shoals Technologies Group's ROA %
For the Solar subindustry, Shoals Technologies 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.
Shoals Technologies Group's ROA % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Shoals Technologies Group's ROA % distribution charts can be found below:
* The bar in red indicates where Shoals Technologies Group's ROA % falls into.
Shoals Technologies Group ROA % Calculation
Shoals Technologies 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.
Shoals Technologies Group (NAS:SHLS) 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.
Shoals Technologies Group ROA % Related Terms
Thank you for viewing the detailed overview of Shoals Technologies Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Shoals Technologies Group (Shoals Technologies Group) Business Description
Shoals Technologies Group Inc is a provider of electrical balance of system or EBOS solutions for solar energy projects, primarily in the United States. EBOS encompasses components that are necessary to carry electric current produced by solar panels to an inverter. The products are sold principally to engineering, procurement and construction firms that build solar energy projects. In 2022 the company entered the electric vehicle charging market.
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