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Digital Core REIT (SGX:DCRU) ROA % : -15.03% (As of Dec. 2023)


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What is Digital Core REIT ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Digital Core REIT's annualized Net Income for the quarter that ended in Dec. 2023 was $-235.3 Mil. Digital Core REIT's average Total Assets over the quarter that ended in Dec. 2023 was $1,566.0 Mil. Therefore, Digital Core REIT's annualized ROA % for the quarter that ended in Dec. 2023 was -15.03%.

The historical rank and industry rank for Digital Core REIT's ROA % or its related term are showing as below:

SGX:DCRU' s ROA % Range Over the Past 10 Years
Min: -6.96   Med: 0.1   Max: 2.04
Current: -6.87

During the past 5 years, Digital Core REIT's highest ROA % was 2.04%. The lowest was -6.96%. And the median was 0.10%.

SGX:DCRU's ROA % is ranked worse than
91.76% of 801 companies
in the REITs industry
Industry Median: 2.18 vs SGX:DCRU: -6.87

Digital Core REIT ROA % Historical Data

The historical data trend for Digital Core REIT'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.

Digital Core REIT ROA % Chart

Digital Core REIT Annual Data
Trend Dec18 Dec19 Dec20 Dec22 Dec23
ROA %
- - 2.04 0.10 -6.96

Digital Core REIT Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Jun22 Dec22 Jun23 Dec23
ROA % Get a 7-Day Free Trial Premium Member Only 2.12 3.02 -2.66 1.12 -15.03

Competitive Comparison of Digital Core REIT's ROA %

For the REIT - Specialty subindustry, Digital Core REIT'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.


Digital Core REIT's ROA % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Digital Core REIT's ROA % distribution charts can be found below:

* The bar in red indicates where Digital Core REIT's ROA % falls into.



Digital Core REIT ROA % Calculation

Digital Core REIT's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=-108.585/( (1612.564+1509.037)/ 2 )
=-108.585/1560.8005
=-6.96 %

Digital Core REIT's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Jun. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=-235.316/( (1622.913+1509.037)/ 2 )
=-235.316/1565.975
=-15.03 %

* 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.


Digital Core REIT  (SGX:DCRU) 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: Dec. 2023 )
=Net Income/Total Assets
=-235.316/1565.975
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-235.316 / 118.548)*(118.548 / 1565.975)
=Net Margin %*Asset Turnover
=-198.5 %*0.0757
=-15.03 %

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.


Digital Core REIT ROA % Related Terms

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Digital Core REIT (SGX:DCRU) Business Description

Traded in Other Exchanges
Address
10 Collyer Quay, No. 42-06 Ocean Financial Centre, Singapore, SGP, 049315
Digital Core REIT is an S-REIT established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilized income-producing real estate assets located globally which are majorly used for data centre purposes, as well as assets necessary to support the digital economy. The company's geographical presence in North America (U.S. and Canada) and Germany. Company earns majority of its revenue from North America segment.

Digital Core REIT (SGX:DCRU) Headlines

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