ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Banca Popolare di Sondrio SpA's annualizedNet Income for the quarter that ended in Dec. 2023 was €450 Mil.
Banca Popolare di Sondrio SpA's average Total Assets over the quarter that ended in Dec. 2023 was €56,255 Mil. Therefore, Banca Popolare di Sondrio SpA's annualized ROA % for the quarter that ended in Dec. 2023 was 0.80%.
The historical rank and industry rank for Banca Popolare di Sondrio SpA's ROA % or its related term are showing as below:
MIL:BPSO'
s ROA % Range Over the Past 10 Years
Min: 0.23 Med: 0.35 Max: 0.82
Current: 0.82
During the past 13 years, Banca Popolare di Sondrio SpA's highest ROA % was 0.82%. The lowest was 0.23%. And the median was 0.35%.
MIL:BPSO's ROA % is ranked worse than 53.96% of 1464
companies
in the Banks industry
Industry Median: 0.9
vs MIL:BPSO: 0.82
Banca Popolare di Sondrio SpA 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 Banca Popolare di Sondrio SpA's ROA %
For the Banks - Regional subindustry, Banca Popolare di Sondrio SpA'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.
Banca Popolare di Sondrio SpA's ROA % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Banca Popolare di Sondrio SpA's ROA % distribution charts can be found below:
* The bar in red indicates where Banca Popolare di Sondrio SpA'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 four times the quarterly (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Banca Popolare di Sondrio SpA (MIL:BPSO) 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 (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (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.
Banca Popolare di Sondrio SpA ROA % Related Terms
Thank you for viewing the detailed overview of Banca Popolare di Sondrio SpA's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Banca Popolare di Sondrio SpA (MIL:BPSO) Business Description
Banca Popolare di Sondrio SpA is a full-service cooperative bank operating primarily in Northern Italy but also in Central Italy and Switzerland. The bank's overall strategy is geared toward sustaining local economies, particularly small- and medium-sized businesses and households. most of the bank's business is generated through business banking, followed by individual banking activities. The bank generates most of its net revenue through net interest income, followed by net fees and commissions and net trading income. A majority of the bank's earning assets are mortgage loans. The bank's lending strategy revolves around a low propensity for risk and an emphasis on diversification.
Banca Popolare di Sondrio SpA (MIL:BPSO) Headlines
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