Archaea Energy (Archaea Energy) ROA % : -2.95% (As of Sep. 2022)

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What is Archaea Energy ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Archaea Energy's annualized Net Income for the quarter that ended in Sep. 2022 was $-60.0 Mil. Archaea Energy's average Total Assets over the quarter that ended in Sep. 2022 was $2,029.8 Mil. Therefore, Archaea Energy's annualized ROA % for the quarter that ended in Sep. 2022 was -2.95%.

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

LFG' s ROA % Range Over the Past 10 Years
Min: -149.86 Med: -6.56 Max: -0.57
Current: -0.57

During the past 4 years, Archaea Energy's highest ROA % was -0.57%. The lowest was -149.86%. And the median was -6.56%.

LFG's ROA % is not ranked
in the Utilities - Independent Power Producers industry.
Industry Median: 1.89 vs LFG: -0.57

Archaea Energy ROA % Historical Data

The historical data trend for Archaea Energy'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.

Archaea Energy ROA % Chart

Archaea Energy Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

ROA %

-149.86

-6.56

-3.13

Archaea Energy Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROA %	Get a 7-Day Free Trial							-7.89	0.52	-5.06	5.53	-2.95

Competitive Comparison of Archaea Energy's ROA %

For the Utilities - Renewable subindustry, Archaea Energy'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.

Archaea Energy's ROA % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Archaea Energy's ROA % distribution charts can be found below:

* The bar in red indicates where Archaea Energy's ROA % falls into.

Archaea Energy ROA % Calculation

Archaea Energy's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %	=	Net Income (A: Dec. 2021 )	/	( (Total Assets (A: Dec. 2020 )	+	Total Assets (A: Dec. 2021 ))	/ count )
	=	-23.897	/	( (74.281	+	1451.189)	/ 2 )
	=	-23.897	/	762.735
	=	-3.13 %

Archaea Energy's annualized ROA % for the quarter that ended in Sep. 2022 is calculated as:

ROA %	=	Net Income (Q: Sep. 2022 )	/	( (Total Assets (Q: Jun. 2022 )	+	Total Assets (Q: Sep. 2022 ))	/ count )
	=	-59.964	/	( (1712.523	+	2347.042)	/ 2 )
	=	-59.964	/	2029.7825
	=	-2.95 %

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 (Sep. 2022) net income data. ROA % is displayed in the 30-year financial page.

Archaea Energy (NYSE:LFG) 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: Sep. 2022 )
=	Net Income	/	Total Assets
=	-59.964	/	2029.7825
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-59.964 / 409.084)	*	(409.084 / 2029.7825)
=	Net Margin %	*	Asset Turnover
=	-14.66 %	*	0.2015
=	-2.95 %

Note: The Net Income data used here is four times the quarterly (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) revenue data.

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.

Archaea Energy ROA % Related Terms

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Archaea Energy (Archaea Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Archaea Energy Inc (NYSE:LFG) » Definitions » ROA %

Comparable Companies

Traded in Other Exchanges

N/A

Address

4444 Westheimer Road, Suite G450, Houston, TX, USA, 77027

Website

https://www.archaeaenergy.com

Archaea Energy Inc is a renewable natural gas (RNG) producer in the U.S., with an RNG platform developing, constructing, and operating RNG facilities to capture waste emissions and convert them into low-carbon fuel.

Executives

Ares Management Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
United States Power Fund Iii, L.p.	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Edward P. Taibi	officer: GC, EVP Strat Init & Gov Aff	35 EAST 62ND STREET, NEW YORK NY 10065
Brian F Mccarthy	officer: Chief Investment Officer	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Aria Renewable Energy Systems Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Corp	director, 10 percent owner	2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Archaea Energy Llc	10 percent owner	500 TECHNOLOGY DRIVE, SECOND FLOOR, CANONSBURG PA 15317
Shalennial Fund I, L.p.	10 percent owner	102 EAST MAIN STREET, SECOND STORY, CARNEGIE PA 15106
Richard Walton	officer: President	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Nicholas Stork	director, officer: Chief Executive Officer	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Lindsay Ellis	officer: General Counsel and Secretary	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Chad Bellah	officer: Chief Accounting Officer	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Eif Us Power Iv, Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Eif Us Power Iii, Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Scott Parkes	director	C/O ARES MANAGEMENT CORP., 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067