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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Automotive Systems's annualized Net Income for the quarter that ended in Dec. 2023 was $43.5 Mil. China Automotive Systems's average Total Assets over the quarter that ended in Dec. 2023 was $737.3 Mil. Therefore, China Automotive Systems's annualized ROA % for the quarter that ended in Dec. 2023 was 5.91%.
The historical rank and industry rank for China Automotive Systems's ROA % or its related term are showing as below:
During the past 13 years, China Automotive Systems's highest ROA % was 5.61%. The lowest was -2.87%. And the median was 2.26%.
The historical data trend for China Automotive Systems'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.
China Automotive Systems Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROA % | Get a 7-Day Free Trial | 1.48 | -0.73 | 1.55 | 2.96 | 5.09 |
China Automotive Systems Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
ROA % | Get a 7-Day Free Trial | 2.50 | 3.79 | 5.93 | 5.45 | 5.91 |
For the Auto Parts subindustry, China Automotive Systems'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.
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's ROA % distribution charts can be found below:
* The bar in red indicates where China Automotive Systems's ROA % falls into.
China Automotive Systems's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
ROA % | = | Net Income (A: Dec. 2023 ) | / | ( (Total Assets (A: Dec. 2022 ) | + | Total Assets (A: Dec. 2023 )) | / count ) |
= | 37.658 | / | ( (714.352 | + | 766.44) | / 2 ) | |
= | 37.658 | / | 740.396 | ||||
= | 5.09 % |
China Automotive Systems's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:
ROA % | = | Net Income (Q: Dec. 2023 ) | / | ( (Total Assets (Q: Sep. 2023 ) | + | Total Assets (Q: Dec. 2023 )) | / count ) |
= | 43.536 | / | ( (708.093 | + | 766.44) | / 2 ) | |
= | 43.536 | / | 737.2665 | ||||
= | 5.91 % |
* 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.
China Automotive Systems (NAS:CAAS) 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 |
= | 43.536 | / | 737.2665 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (43.536 / 636.64) | * | (636.64 / 737.2665) |
= | Net Margin % | * | Asset Turnover |
= | 6.84 % | * | 0.8635 |
= | 5.91 % |
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.
Thank you for viewing the detailed overview of China Automotive Systems's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Jie Li | officer: Chief Financial Officer | HENGLONG BLDG., # 1 GUANSHAN 1ST ROAD, EAST LAKE HI-TECH ZONE, WUHAN F4 430073 |
Tong Kooi Teo | director | 08-05 GOODWOOD RESIDENCE, 261 BUKIT TIMAH ROAD, SINGAPORE U0 259703 |
Stanley Morgan | other: See Remarks Below | 1585 BROADWAY, NEW YORK NY 10036 |
Wong Arthur Lap Tat | director | C/O 27 UNION SQUARE WEST, SUITE 502, NEW YORK NY 10003 |
Wu Qizhou | director, officer: COO | |
Tse Yiu Wong | director | 4TH FL BLDG E NO 501, JEN GANG RD, SHANGHAI CHINA F4 9999999 |
Shengbin Yu | officer: Senior Vice President | HENGLONG BUILDING #1 GUANSHAN FIRST RD, EAST LAKE HI-TECH ZONE, WUHAN, HUBEI PROVINCE F4 430073 |
Liping Xie | other: Wife of Chairman | |
Haimian Cai | director | 3170 OTTER CREEK COURT, ANN ARBOR MI 48105 |
Hanlin Chen | director, 10 percent owner, officer: President and CEO | |
Shaobo Wang | officer: Senior Vice President | HENGLONG BUILDING #1 GUANSHAN FIRST RD, EAST LAKE HI-TECH ZONE, WUHAN, HUBEI PROVINCE F4 430073 |
Yijun Xia | officer: Vice President | NO. 1 HENGLONG ROAD, YUQIAO DEV. ZONE, SHASHI DISTRICT, JINGZHOU CITY, HUBEI PROVINCE F4 434000 |
Guangxun Xu | director | 17 WINDERMERE AVENUE, FINCHLEY, LONDON X0 N3 3QX |
Robert Tung | director | 1733 LEHAVRE DR, POTOMAC MD 20854 |
Daming Hu | officer: Chief Accountant |
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