ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Vanachai Group PCL's annualizedNet Income for the quarter that ended in Dec. 2023 was ฿454 Mil.
Vanachai Group PCL's average Total Assets over the quarter that ended in Dec. 2023 was ฿19,110 Mil. Therefore, Vanachai Group PCL's annualized ROA % for the quarter that ended in Dec. 2023 was 2.38%.
The historical rank and industry rank for Vanachai Group PCL's ROA % or its related term are showing as below:
BKK:VNG'
s ROA % Range Over the Past 10 Years
Min: -7.2 Med: 4.63 Max: 11.45
Current: 0.14
During the past 13 years, Vanachai Group PCL's highest ROA % was 11.45%. The lowest was -7.20%. And the median was 4.63%.
BKK:VNG's ROA % is ranked worse than 63.39% of 295
companies
in the Forest Products industry
Industry Median: 1.67
vs BKK:VNG: 0.14
Vanachai Group PCL ROA % Historical Data
The historical data trend for Vanachai Group PCL'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.
Competitive Comparison of Vanachai Group PCL's ROA %
For the Lumber & Wood Production subindustry, Vanachai Group PCL'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.
Vanachai Group PCL's ROA % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Vanachai Group PCL's ROA % distribution charts can be found below:
* The bar in red indicates where Vanachai Group PCL's ROA % falls into.
Vanachai Group PCL ROA % Calculation
Vanachai Group PCL'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.
Vanachai Group PCL (BKK:VNG) 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.
Vanachai Group PCL ROA % Related Terms
Thank you for viewing the detailed overview of Vanachai Group PCL's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vanachai Group PCL is a building materials company that manufactures and distributes wood-based products. The company's primary products include board panels, particle boards, and wood substitutes. The company creates wood-based goods such as particleboards, medium density fiberboards (MDF boards), Doorskin and melamine laminated particleboards, which are distributed to both domestic and international markets. Vanachai also sells finished products that include melamine doors, door frames, resins, formaldehyde adhesives, and finished flooring. The company generates the vast majority of its revenue in Thailand.
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