ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. IHS Markit's annualizedNet Income for the quarter that ended in Nov. 2021 was $2,949 Mil.
IHS Markit's average Total Assets over the quarter that ended in Nov. 2021 was $16,705 Mil. Therefore, IHS Markit's annualized ROA % for the quarter that ended in Nov. 2021 was 17.65%.
The historical rank and industry rank for IHS Markit's ROA % or its related term are showing as below:
INFO'
s ROA % Range Over the Past 10 Years
Min: 1.57 Med: 3.6 Max: 7.3
Current: 7.29
During the past 13 years, IHS Markit's highest ROA % was 7.30%. The lowest was 1.57%. And the median was 3.60%.
INFO's ROA % is not ranked
in the Business Services industry.
Industry Median: 3.57
vs INFO: 7.29
IHS Markit ROA % Historical Data
The historical data trend for IHS Markit'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.
For the Consulting Services subindustry, IHS Markit'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.
IHS Markit's ROA % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, IHS Markit's ROA % distribution charts can be found below:
* The bar in red indicates where IHS Markit's ROA % falls into.
IHS Markit ROA % Calculation
IHS Markit's annualized ROA % for the fiscal year that ended in Nov. 2021 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 four times the quarterly (Nov. 2021) net income data.
ROA % is displayed in the 30-year financial page.
IHS Markit (NYSE:INFO) 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 four times the quarterly (Nov. 2021) net income data. The Revenue data used here is four times the quarterly (Nov. 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.
IHS Markit ROA % Related Terms
Thank you for viewing the detailed overview of IHS Markit's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.
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