September 5, 2012 (Chinavestor) Through the comparison of the last three years’ return on asset (ROA) for these four companies, it can be found that Baidu.com Inc. (NASDAQ:BIDU) has the highest ROA, which indicates, among all the four enterprises, Baidu.com Inc. (NASDAQ:BIDU) could make largest profit using the same amount of asset.
The comparison of return on equity (ROE) also represents that Baidu.com Inc. (NASDAQ:BIDU) has the highest ROE among these companies. While the ROEs of all the other three companies had declined in the past three years, the ROE of Baidu.com Inc. (NASDAQ:BIDU) has increased from 31% to 43%. This is the indication of BIDU’s strong capability of making profit through its business model.
Baidu.com Inc. (NASDAQ:BIDU) has shown both strong ROA and ROE in the past years, especially compared with other competitors in the search industry in China. These strong profitability ratios have demonstrated BIDU’s good business model and dominant position in China’s search engine industry.