ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kabel Deutschland Holding AG's annualizedNet Income for the quarter that ended in Mar. 2021 was €535 Mil.
Kabel Deutschland Holding AG's average Total Assets over the quarter that ended in Mar. 2021 was €4,176 Mil. Therefore, Kabel Deutschland Holding AG's annualized ROA % for the quarter that ended in Mar. 2021 was 12.80%.
The historical rank and industry rank for Kabel Deutschland Holding AG's ROA % or its related term are showing as below:
HAM:KD8's ROA % is not ranked *
in the Media - Diversified industry.
Industry Median: 0.82 * Ranked among companies with meaningful ROA % only.
Kabel Deutschland Holding AG ROA % Historical 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.
Competitive Comparison of Kabel Deutschland Holding AG's ROA %
For the Entertainment subindustry, Kabel Deutschland Holding AG'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.
Kabel Deutschland Holding AG's ROA % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Kabel Deutschland Holding AG's ROA % distribution charts can be found below:
* The bar in red indicates where Kabel Deutschland Holding AG's ROA % falls into.
* 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. 2021) net income data.
ROA % is displayed in the 30-year financial page.
Kabel Deutschland Holding AG (HAM:KD8) 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 one times the annual (Mar. 2021) net income data. The Revenue data used here is one times the annual (Mar. 2021) 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.
Kabel Deutschland Holding AG ROA % Related Terms
Thank you for viewing the detailed overview of Kabel Deutschland Holding AG's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kabel Deutschland Holding AG (HAM:KD8) Business Description
Kabel Deutschland is a triple play cable network operator and holding company. Its primary revenue segments are TV Business and Internet and Phone Business. The TV Business segment offers subscribers basic cable- and premium-TV products. Revenue is generated through monthly subscription fees. The Internet and Phone business is primarily involved with providing broadband Internet as well as fixed-line and mobile phone services. Like the TV Business segment, revenue is earned through monthly subscription fees. The company's infrastructure comes in the form of hybrid fibre coaxial cables. Kabel Deustchland is majority owned by Vodafone and generates the majority of its revenue in Germany.
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