GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » Ares Asia Ltd (HKSE:00645) » Definitions » ROA %

Ares Asia (HKSE:00645) ROA % : -6.90% (As of Sep. 2023)


View and export this data going back to 1993. Start your Free Trial

What is Ares Asia ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ares Asia's annualized Net Income for the quarter that ended in Sep. 2023 was HK$-8.7 Mil. Ares Asia's average Total Assets over the quarter that ended in Sep. 2023 was HK$125.5 Mil. Therefore, Ares Asia's annualized ROA % for the quarter that ended in Sep. 2023 was -6.90%.

The historical rank and industry rank for Ares Asia's ROA % or its related term are showing as below:

HKSE:00645' s ROA % Range Over the Past 10 Years
Min: -30.88   Med: -3.68   Max: 3.87
Current: -7.62

During the past 13 years, Ares Asia's highest ROA % was 3.87%. The lowest was -30.88%. And the median was -3.68%.

HKSE:00645's ROA % is ranked worse than
76.37% of 182 companies
in the Other Energy Sources industry
Industry Median: 2.41 vs HKSE:00645: -7.62

Ares Asia ROA % Historical Data

The historical data trend for Ares Asia'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.

Ares Asia ROA % Chart

Ares Asia 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 -3.16 -2.44 -5.83 -5.92 -3.79

Ares Asia Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9.10 -9.01 -2.22 -7.42 -6.90

Competitive Comparison of Ares Asia's ROA %

For the Thermal Coal subindustry, Ares Asia'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.


Ares Asia's ROA % Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Ares Asia's ROA % distribution charts can be found below:

* The bar in red indicates where Ares Asia's ROA % falls into.



Ares Asia ROA % Calculation

Ares Asia'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 )
=-6.507/( (192.597+150.452)/ 2 )
=-6.507/171.5245
=-3.79 %

Ares Asia's annualized ROA % for the quarter that ended in Sep. 2023 is calculated as:

ROA %=Net Income (Q: Sep. 2023 )/( (Total Assets (Q: Mar. 2023 )+Total Assets (Q: Sep. 2023 ))/ count )
=-8.658/( (150.452+100.565)/ 2 )
=-8.658/125.5085
=-6.90 %

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


Ares Asia  (HKSE:00645) 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: Sep. 2023 )
=Net Income/Total Assets
=-8.658/125.5085
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-8.658 / 437.3)*(437.3 / 125.5085)
=Net Margin %*Asset Turnover
=-1.98 %*3.4842
=-6.90 %

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


Ares Asia ROA % Related Terms

Thank you for viewing the detailed overview of Ares Asia's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ares Asia (HKSE:00645) Business Description

Traded in Other Exchanges
N/A
Address
1 Austin Road West, Unit No. 9608, Level 96, International Commerce Centre, Kowloon, Hong Kong, HKG
Ares Asia Ltd is an investment holding company. The group is principally engaged in the business of coal trading, entailing the selling of coal purchased from various countries to Mainland China and other commodities trading, which encompasses supply chain management and risk management service. Its business falls under the primary segment of Coal and other trading. Geographically, the group has a business presence in Mainland China, Hong Kong, and other countries, of which maximum revenue is derived from Mainland China.

Ares Asia (HKSE:00645) Headlines

No Headlines