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Arun Valley Hydro Power Co (XNEP:AHPC) ROA % : 1.53% (As of Oct. 2023)


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What is Arun Valley Hydro Power Co ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Arun Valley Hydro Power Co's annualized Net Income for the quarter that ended in Oct. 2023 was NPR55.20 Mil. Arun Valley Hydro Power Co's average Total Assets over the quarter that ended in Oct. 2023 was NPR3,612.18 Mil. Therefore, Arun Valley Hydro Power Co's annualized ROA % for the quarter that ended in Oct. 2023 was 1.53%.

The historical rank and industry rank for Arun Valley Hydro Power Co's ROA % or its related term are showing as below:

XNEP:AHPC' s ROA % Range Over the Past 10 Years
Min: 0.29   Med: 6.11   Max: 9.79
Current: 0.29

During the past 9 years, Arun Valley Hydro Power Co's highest ROA % was 9.79%. The lowest was 0.29%. And the median was 6.11%.

XNEP:AHPC's ROA % is ranked worse than
83.3% of 521 companies
in the Utilities - Regulated industry
Industry Median: 2.92 vs XNEP:AHPC: 0.29

Arun Valley Hydro Power Co ROA % Historical Data

The historical data trend for Arun Valley Hydro Power Co'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.

Arun Valley Hydro Power Co ROA % Chart

Arun Valley Hydro Power Co Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
ROA %
Get a 7-Day Free Trial Premium Member Only 2.02 4.98 6.11 3.91 2.78

Arun Valley Hydro Power Co Quarterly Data
Jul17 Jan18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Jan21 Apr21 Jul21 Jan22 Apr22 Jul22 Oct22 Jan23 Oct23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.33 -1.84 3.34 -0.36 1.53

Competitive Comparison of Arun Valley Hydro Power Co's ROA %

For the Utilities - Regulated Electric subindustry, Arun Valley Hydro Power Co'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.


Arun Valley Hydro Power Co's ROA % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Arun Valley Hydro Power Co's ROA % distribution charts can be found below:

* The bar in red indicates where Arun Valley Hydro Power Co's ROA % falls into.



Arun Valley Hydro Power Co ROA % Calculation

Arun Valley Hydro Power Co's annualized ROA % for the fiscal year that ended in Jul. 2022 is calculated as:

ROA %=Net Income (A: Jul. 2022 )/( (Total Assets (A: Jul. 2021 )+Total Assets (A: Jul. 2022 ))/ count )
=85.039/( (2936.556+3174.173)/ 2 )
=85.039/3055.3645
=2.78 %

Arun Valley Hydro Power Co's annualized ROA % for the quarter that ended in Oct. 2023 is calculated as:

ROA %=Net Income (Q: Oct. 2023 )/( (Total Assets (Q: Jan. 2023 )+Total Assets (Q: Oct. 2023 ))/ count )
=55.2/( (3667.703+3556.652)/ 2 )
=55.2/3612.1775
=1.53 %

* 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 (Oct. 2023) net income data. ROA % is displayed in the 30-year financial page.


Arun Valley Hydro Power Co  (XNEP:AHPC) 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: Oct. 2023 )
=Net Income/Total Assets
=55.2/3612.1775
=(Net Income / Revenue)*(Revenue / Total Assets)
=(55.2 / 52.9)*(52.9 / 3612.1775)
=Net Margin %*Asset Turnover
=104.35 %*0.0146
=1.53 %

Note: The Net Income data used here is four times the quarterly (Oct. 2023) net income data. The Revenue data used here is four times the quarterly (Oct. 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.


Arun Valley Hydro Power Co ROA % Related Terms

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Arun Valley Hydro Power Co (XNEP:AHPC) Business Description

Traded in Other Exchanges
N/A
Address
Trade Tower Nepal, 2nd Floor, Thapathali, Kathmandu, NPL
Arun Valley Hydro Power Co Ltd is a hydropower company. The company develops, builds, owns and operates hydropower projects. Its projects include Pilowa solar PV project, Kabeli B-1 Cascade HEP, Budhum khola HEP among others.

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