Examining how ATA Inc (NASDAQ:ATAI) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how ATA is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its consumer services industry peers. View out our latest analysis for ATA
Did ATAI’s recent performance beat its trend and industry?ATAI’s trailing twelve-month earnings (from 31 March 2018) of CN¥54.03m has In terms of returns from investment, ATA has not invested its equity funds well, leading to a 16.80% return on equity (ROE), below the sensible minimum of 20%. However, its return on assets (ROA) of 8.48% exceeds the US Consumer Services industry of 6.47%, indicating ATA has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for ATA’s debt level, has increased over the past 3 years from 8.69% to 23.45%.
What does this mean?
Though ATA’s past data is helpful, it is only one aspect of my investment thesis. You should continue to research ATA to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ATAI’s future growth? Take a look at our free research report of analyst consensus for ATAI’s outlook.
- Financial Health: Is ATAI’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.