ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tan Chong International's annualizedNet Income for the quarter that ended in Dec. 2023 was HK$307 Mil.
Tan Chong International's average Total Assets over the quarter that ended in Dec. 2023 was HK$23,039 Mil. Therefore, Tan Chong International's annualized ROA % for the quarter that ended in Dec. 2023 was 1.33%.
The historical rank and industry rank for Tan Chong International's ROA % or its related term are showing as below:
HKSE:00693'
s ROA % Range Over the Past 10 Years
Min: 0.05 Med: 1.86 Max: 3.17
Current: 1.24
During the past 13 years, Tan Chong International's highest ROA % was 3.17%. The lowest was 0.05%. And the median was 1.86%.
HKSE:00693's ROA % is ranked worse than 66.23% of 1300
companies
in the Vehicles & Parts industry
Industry Median: 3.325
vs HKSE:00693: 1.24
* 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 Tan Chong International's ROA %
For the Auto & Truck Dealerships subindustry, Tan Chong International'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.
Tan Chong International's ROA % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tan Chong International's ROA % distribution charts can be found below:
* The bar in red indicates where Tan Chong International's ROA % falls into.
Tan Chong International ROA % Calculation
Tan Chong International'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 two times the semi-annual (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Tan Chong International (HKSE:00693) 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 two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.
Tan Chong International ROA % Related Terms
Thank you for viewing the detailed overview of Tan Chong International's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tan Chong International (HKSE:00693) Business Description
Tan Chong International Ltd is an automobile dealer. It offers vehicles of Nissan brand in Singapore, Hong Kong, China and Thailand. The company has five business lines namely, Motor vehicle distribution and dealership business, Heavy commercial vehicle and industrial equipment distribution business, Property rentals and development, Transportation and Other operations which include investment holding, hire purchase financing, provision of workshop services and the manufacturing of vehicle seats. The company generates the majority of revenue from Motor vehicle distribution and dealership business.
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