Equity Story Group (ASX:EQS) ROA % : -55.94% (As of Dec. 2023)

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What is Equity Story Group ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Equity Story Group's annualized Net Income for the quarter that ended in Dec. 2023 was A$-1.49 Mil. Equity Story Group's average Total Assets over the quarter that ended in Dec. 2023 was A$2.66 Mil. Therefore, Equity Story Group's annualized ROA % for the quarter that ended in Dec. 2023 was -55.94%.

The historical rank and industry rank for Equity Story Group's ROA % or its related term are showing as below:

ASX:EQS' s ROA % Range Over the Past 10 Years
Min: -74.97 Med: -55.93 Max: -39.01
Current: -74.97

During the past 3 years, Equity Story Group's highest ROA % was -39.01%. The lowest was -74.97%. And the median was -55.93%.

ASX:EQS's ROA % is ranked worse than
96.52% of 804 companies
in the Capital Markets industry
Industry Median: 1.385 vs ASX:EQS: -74.97

Equity Story Group ROA % Historical Data

The historical data trend for Equity Story 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.

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Equity Story Group ROA % Chart

Equity Story Group Annual Data

Trend

Jun21

Jun22

Jun23

ROA %

-39.01

-72.84

Equity Story Group Semi-Annual Data
	Jun22	Dec22	Jun23	Dec23
ROA %	-	-53.32	-96.52	-55.94

Competitive Comparison of Equity Story Group's ROA %

For the Capital Markets subindustry, Equity Story 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.

Equity Story Group's ROA % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Equity Story Group's ROA % distribution charts can be found below:

* The bar in red indicates where Equity Story Group's ROA % falls into.

Equity Story Group ROA % Calculation

Equity Story Group's annualized ROA % for the fiscal year that ended in Jun. 2023 is calculated as:

ROA %	=	Net Income (A: Jun. 2023 )	/	( (Total Assets (A: Jun. 2022 )	+	Total Assets (A: Jun. 2023 ))	/ count )
	=	-2.566	/	( (4.495	+	2.551)	/ 2 )
	=	-2.566	/	3.523
	=	-72.84 %

Equity Story Group's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %	=	Net Income (Q: Dec. 2023 )	/	( (Total Assets (Q: Jun. 2023 )	+	Total Assets (Q: Dec. 2023 ))	/ count )
	=	-1.486	/	( (2.551	+	2.762)	/ 2 )
	=	-1.486	/	2.6565
	=	-55.94 %

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 two times the semi-annual (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.

Equity Story Group (ASX:EQS) 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:

	ROA %		(Q: Dec. 2023 )
=	Net Income	/	Total Assets
=	-1.486	/	2.6565
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-1.486 / 0.864)	*	(0.864 / 2.6565)
=	Net Margin %	*	Asset Turnover
=	-171.99 %	*	0.3252
=	-55.94 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 2023) revenue data.

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.

Equity Story Group ROA % Related Terms

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