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Ion Exchange (India) (BOM:500214) ROA % : 4.21% (As of Mar. 2023)


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What is Ion Exchange (India) ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ion Exchange (India)'s annualized Net Income for the quarter that ended in Mar. 2023 was ₹817 Mil. Ion Exchange (India)'s average Total Assets over the quarter that ended in Mar. 2023 was ₹17,828 Mil. Therefore, Ion Exchange (India)'s annualized ROA % for the quarter that ended in Mar. 2023 was 4.21%.

The historical rank and industry rank for Ion Exchange (India)'s ROA % or its related term are showing as below:

BOM:500214' s ROA % Range Over the Past 10 Years
Min: 0.68   Med: 4.9   Max: 11.04
Current: 4.58

During the past 13 years, Ion Exchange (India)'s highest ROA % was 11.04%. The lowest was 0.68%. And the median was 4.90%.

BOM:500214's ROA % is ranked better than
58.7% of 3017 companies
in the Industrial Products industry
Industry Median: 3.5 vs BOM:500214: 4.58

Ion Exchange (India) ROA % Historical Data

The historical data trend for Ion Exchange (India)'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.

Ion Exchange (India) ROA % Chart

Ion Exchange (India) Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.85 7.35 10.19 10.61 11.04

Ion Exchange (India) Semi-Annual Data
Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.04 2.03 4.86 5.11 4.21

Competitive Comparison of Ion Exchange (India)'s ROA %

For the Pollution & Treatment Controls subindustry, Ion Exchange (India)'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.


Ion Exchange (India)'s ROA % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ion Exchange (India)'s ROA % distribution charts can be found below:

* The bar in red indicates where Ion Exchange (India)'s ROA % falls into.



Ion Exchange (India) ROA % Calculation

Ion Exchange (India)'s annualized ROA % for the fiscal year that ended in Mar. 2023 is calculated as:

ROA %=Net Income (A: Mar. 2023 )/( (Total Assets (A: Mar. 2022 )+Total Assets (A: Mar. 2023 ))/ count )
=1967.418/( (16254.124+19401.45)/ 2 )
=1967.418/17827.787
=11.04 %

Ion Exchange (India)'s annualized ROA % for the quarter that ended in Mar. 2023 is calculated as:

ROA %=Net Income (Q: Mar. 2023 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Mar. 2023 ))/ count )
=816.818/( (16254.124+19401.45)/ 2 )
=816.818/17827.787
=4.58 %

* 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 one times the annual (Mar. 2023) net income data. ROA % is displayed in the 30-year financial page.


Ion Exchange (India)  (BOM:500214) 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 bank’s 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: Mar. 2023 )
=Net Income/Total Assets
=816.818/17827.787
=(Net Income / Revenue)*(Revenue / Total Assets)
=(816.818 / 6364.684)*(6364.684 / 17827.787)
=Net Margin %*Asset Turnover
=12.83 %*0.357
=4.58 %

Note: The Net Income data used here is one times the annual (Mar. 2023) net income data. The Revenue data used here is one times the annual (Mar. 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.


Ion Exchange (India) ROA % Related Terms

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Ion Exchange (India) (BOM:500214) Business Description

Traded in Other Exchanges
Address
Dr. E. Moses Road, Ion House, Mahalaxmi, Mumbai, MH, IND, 400011
Ion Exchange (India) Ltd is a water solution provider. The principal activities of the company consist of the construction and maintenance of water treatment plants, wastewater treatment, manufacturing resins, specialty chemicals for water, recycling, zero liquid discharge, sewage treatment, packaged drinking water, sea water desalination, etc. The company operates its business through the Engineering division, which is a key revenue driver that comprises water treatment plants, spares, and services in connection with the plants; the Chemicals segment consists of resins, water treatment chemicals, sugar chemicals, and paper chemicals; and the Consumer Products segment comprises domestic water purifiers. The company caters to both domestic and international markets.

Ion Exchange (India) (BOM:500214) Headlines

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