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Books-A-Million (Books-A-Million) ROA %

: -9.07% (As of Oct. 2015)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Books-A-Million's annualized Net Income for the quarter that ended in Oct. 2015 was $-28.5 Mil. Books-A-Million's average Total Assets over the quarter that ended in Oct. 2015 was $313.8 Mil. Therefore, Books-A-Million's annualized ROA % for the quarter that ended in Oct. 2015 was -9.07%.

The historical rank and industry rank for Books-A-Million's ROA % or its related term are showing as below:

BAMM's ROA % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 2.18
* Ranked among companies with meaningful ROA % only.

Books-A-Million ROA % Historical Data

The historical data trend for Books-A-Million'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.

Books-A-Million Annual Data
Trend Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.26 -0.99 0.87 -2.57 1.19

Books-A-Million Quarterly Data
Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15
ROA % 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 Premium Member Only Premium Member Only Premium Member Only -8.79 24.50 -7.10 -7.78 -9.07

Competitive Comparison

For the Specialty Retail subindustry, Books-A-Million'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.


Books-A-Million ROA % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Books-A-Million's ROA % distribution charts can be found below:

* The bar in red indicates where Books-A-Million's ROA % falls into.



Books-A-Million ROA % Calculation

Books-A-Million's annualized ROA % for the fiscal year that ended in Jan. 2015 is calculated as:

ROA %=Net Income (A: Jan. 2015 )/( (Total Assets (A: Jan. 2014 )+Total Assets (A: Jan. 2015 ))/ count )
=3.538/( (302.732+294.251)/ 2 )
=3.538/298.4915
=1.19 %

Books-A-Million's annualized ROA % for the quarter that ended in Oct. 2015 is calculated as:

ROA %=Net Income (Q: Oct. 2015 )/( (Total Assets (Q: Jul. 2015 )+Total Assets (Q: Oct. 2015 ))/ count )
=-28.468/( (296.204+331.31)/ 2 )
=-28.468/313.757
=-9.07 %

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


Books-A-Million  (NAS:BAMM) 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. 2015 )
=Net Income/Total Assets
=-28.468/313.757
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-28.468 / 406.324)*(406.324 / 313.757)
=Net Margin %*Asset Turnover
=-7.01 %*1.295
=-9.07 %

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


Books-A-Million ROA % Related Terms

Thank you for viewing the detailed overview of Books-A-Million's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Books-A-Million (Books-A-Million) Business Description

Traded in Other Exchanges
N/A
Address
Books-A-Million Inc was founded in 1917, originally incorporated under the laws of the State of Alabama in 1964 and reincorporated in Delaware in September 1992. The Company is a book retailer located in the eastern United States and operates both superstores and traditional bookstores. The Company operates both superstores and traditional bookstores. The first Superstore was opened in 1987 and operates under the names Books-A-Million and Books and Co. and 2nd & Charles. Traditional bookstores are smaller stores operated under the names Bookland, Books-A-Million and BAM. All store formats generally offer a selection of sellers and other hardcover and paperback books, magazines, toys, games, electronics and gifts. In addition to these retail store formats, it offers its products over the internet at Booksamillion.com. Its retail operations also include the operation of Yogurt Mountain Holding, LLC, a retailer and franchisor of self-serve frozen yogurt stores. It also develops and manages commercial real estate investments through its subsidiary, Preferred Growth Properties, LLC. The Company operates in three reportable operating segments: Retail trade; Electronic commerce trade; and Real estate development and management. In the retail trade segment, it is engaged in the retail sale of books, magazines and general merchandise, including gifts, cards, games, toys, collectibles, music, DVDs, electronic devices and accessories in its retail stores. In the electronic commerce trade segment, it is engaged in the retail sale of books and general merchandise over the internet. The real estate development and management segment is managed separately from the retail trade and electronic commerce trade segments, with a focus on deriving revenues through developing and leasing commercial retail real estate for purposes of earning rental income. The Company promotes its bookstores through the use of traditional direct mail, e-mail and online advertising, as well as point-of-sale materials posted and distributed in its stores. The retail book business is competitive. The Company faces direct competition from other superstores, such as Barnes & Noble, and it also faces competition from mass merchandisers, such as Wal-Mart and Costco, and online retailers, such as Amazon.com, Barnes & Noble and Wal-Mart. Its bookstores also compete with specialty retail stores that offer books in particular subject areas, independent single store operators, variety discounters, drugstores, warehouse clubs, mail order clubs and other retailers offering books. In addition, its bookstores face additional competition from the market for electronic books and may face competition from other categories of retailers entering the retail book market. The Company is subject to general business regulations and laws, as well as regulations and laws specifically governing the Internet and e-commerce.
Executives
Joel R Anderson other: See Remarks Below 202 NORTH COURT STREET, FLORENCE AL 35630
Ronald James Domanico director 3100 JOE JERKINS BLVD, AUSTELL GA 30106
Terrance G Finley officer: CEO & President, other: See Remarks Below 402 INDUSTRIAL LANE, C/O BOOKS A MILLION, BIRMINGHAM AL 35211
Clyde B Anderson director, 10 percent owner, officer: Executive Chairman, other: See Remarks Below BOOKS A MILLION INC, 402INDUSTRIAL LANE, BIRMING AL 35211
Albert C Johnson director 3172 CROSSINGS DRIVE, BIRMINGHAM AL 35242
Rogers William H Jr director 214 N TRYON STREET, CHARLOTTE NC 28202
Sandra B Cochran director, officer: PRESIDENT & CEO, other: SEE REMARKS BELOW 305 HARTMANN DRIVE, LEBANON TN 37087

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