Molycorp (XSWX:MCP) ROA % : -53.42% (As of Jun. 2015)

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What is Molycorp ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Molycorp's annualized Net Income for the quarter that ended in Jun. 2015 was CHF-1,247.4 Mil. Molycorp's average Total Assets over the quarter that ended in Jun. 2015 was CHF2,335.0 Mil. Therefore, Molycorp's annualized ROA % for the quarter that ended in Jun. 2015 was -53.42%.

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

XSWX:MCP' s ROA % Range Over the Past 10 Years
Min: -32.9 Med: -17.54 Max: 13.54
Current: -32.9

During the past 6 years, Molycorp's highest ROA % was 13.54%. The lowest was -32.90%. And the median was -17.54%.

XSWX:MCP's ROA % is not ranked
in the Metals & Mining industry.
Industry Median: -14.8 vs XSWX:MCP: -32.90

Molycorp ROA % Historical Data

The historical data trend for Molycorp'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.

Molycorp ROA % Chart

Molycorp Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROA %

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-17.36

13.40

-22.57

-12.29

-22.70

Molycorp Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
ROA %	Get a 7-Day Free Trial															-11.81	-14.85	-48.67	-16.18	-53.42

Competitive Comparison of Molycorp's ROA %

For the Other Industrial Metals & Mining subindustry, Molycorp'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.

Molycorp's ROA % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Molycorp's ROA % distribution charts can be found below:

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

Molycorp ROA % Calculation

Molycorp's annualized ROA % for the fiscal year that ended in Dec. 2014 is calculated as:

ROA %	=	Net Income (A: Dec. 2014 )	/	( (Total Assets (A: Dec. 2013 )	+	Total Assets (A: Dec. 2014 ))	/ count )
	=	-589.992	/	( (2685.976	+	2512.359)	/ 2 )
	=	-589.992	/	2599.1675
	=	-22.70 %

Molycorp's annualized ROA % for the quarter that ended in Jun. 2015 is calculated as:

ROA %	=	Net Income (Q: Jun. 2015 )	/	( (Total Assets (Q: Mar. 2015 )	+	Total Assets (Q: Jun. 2015 ))	/ count )
	=	-1247.408	/	( (2444.389	+	2225.523)	/ 2 )
	=	-1247.408	/	2334.956
	=	-53.42 %

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 (Jun. 2015) net income data. ROA % is displayed in the 30-year financial page.

Molycorp (XSWX:MCP) 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: Jun. 2015 )
=	Net Income	/	Total Assets
=	-1247.408	/	2334.956
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-1247.408 / 424.448)	*	(424.448 / 2334.956)
=	Net Margin %	*	Asset Turnover
=	-293.89 %	*	0.1818
=	-53.42 %

Note: The Net Income data used here is four times the quarterly (Jun. 2015) net income data. The Revenue data used here is four times the quarterly (Jun. 2015) 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.

Molycorp ROA % Related Terms

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Molycorp (XSWX:MCP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Molycorp Inc (XSWX:MCP) » Definitions » ROA %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.molycorp.com

Molycorp Inc, formerly known as Rare Earth Acquisitions LLC, was formed on March 4, 2010 as a new Delaware corporation. The Company manufactures custom engineered rare earth and rare metal products. Its business is organized into four reportable segments: Resources; Chemicals and Oxides; Magnetic Materials and Alloys; and Rare Metals. The Resources segment includes its operations at the Molycorp Mountain Pass Rare Earth Facility, where it conducts rare earth minerals extraction to produce: rare earth concentrates; REO, including lanthanum, cerium, neodymium, praseodymium, and yttrium; heavy rare earth concentrates, which include samarium, europium, gadolinium, terbium, dysprosium, and others; and SorbXTM, a line of proprietary rare earth-based water treatment products. The Chemicals and Oxides segment includes: production of REO at its operations at Molycorp Silmet; separated heavy rare earth oxides and other custom engineered materials from its facilities in Jiangyin, Jiangsu Province, China; and production of REO, salts of rare earth elements, or REEs, zirconium-based engineered materials and mixed rare earth/zirconium oxides from its facilities in Zibo, Shandong Province, China. The Magnetic Materials and Alloys segment includes: the production of Neo Powders through its wholly-owned manufacturing facilities in Tianjin, China, and Korat, Thailand, under the Molycorp Magnequench brand. This operating segment also includes manufacturing of neodymium and samarium magnet alloys, other specialty alloy products and rare earth metals at its MMA facility, located in Tolleson, Arizona. The Rare Metals segment produces, reclaims, refines and markets high value niche metals and their compounds that include gallium, indium, rhenium, tantalum, and niobium. Applications from products made in this segment include wireless technologies, LED, flat panel display, turbine, solar, catalyst, steel additive, electronics applications, and others. The Company's operations are subject to numerous and detailed international, national, federal, state and local laws, regulations and permits affecting the mining and mineral processing industry, including those pertaining to employee health and safety, environmental permitting and licensing, air quality standards, greenhouse gas, or GHG, emissions, water usage and disposal, pollution, waste management, plant and wildlife protection, handling and disposal of radioactive substances, remediation of soil and groundwater contamination, land use, reclamation and restoration of properties, the discharge of materials into the environment and groundwater quality and availability.

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