Dearborn Bancorp (Dearborn Bancorp) ROA % : 0.07% (As of Mar. 2011)

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What is Dearborn Bancorp ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Dearborn Bancorp's annualized Net Income for the quarter that ended in Mar. 2011 was $0.62 Mil. Dearborn Bancorp's average Total Assets over the quarter that ended in Mar. 2011 was $906.34 Mil. Therefore, Dearborn Bancorp's annualized ROA % for the quarter that ended in Mar. 2011 was 0.07%.

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

DEAR's ROA % is not ranked ^*
in the Banks industry.
Industry Median: 0.91
* Ranked among companies with meaningful ROA % only.

Dearborn Bancorp ROA % Historical Data

The historical data trend for Dearborn Bancorp'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.

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Dearborn Bancorp ROA % Chart

Dearborn Bancorp Annual Data

Trend

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

ROA %

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1.00

0.33

-2.94

-5.80

-1.50

Dearborn Bancorp Quarterly Data
	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11
ROA %	Get a 7-Day Free Trial															-5.73	0.27	-1.04	0.07	0.08

Competitive Comparison of Dearborn Bancorp's ROA %

For the Banks - Regional subindustry, Dearborn Bancorp'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.

Dearborn Bancorp's ROA % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Dearborn Bancorp's ROA % distribution charts can be found below:

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

Dearborn Bancorp ROA % Calculation

Dearborn Bancorp's annualized ROA % for the fiscal year that ended in Dec. 2010 is calculated as:

ROA %	=	Net Income (A: Dec. 2010 )	/	( (Total Assets (A: Dec. 2009 )	+	Total Assets (A: Dec. 2010 ))	/ count )
	=	-14.249	/	( (986.486	+	915.684)	/ 2 )
	=	-14.249	/	951.085
	=	-1.50 %

Dearborn Bancorp's annualized ROA % for the quarter that ended in Mar. 2011 is calculated as:

ROA %	=	Net Income (Q: Mar. 2011 )	/	( (Total Assets (Q: Dec. 2010 )	+	Total Assets (Q: Mar. 2011 ))	/ count )
	=	0.616	/	( (915.684	+	896.994)	/ 2 )
	=	0.616	/	906.339
	=	0.07 %

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 (Mar. 2011) net income data. ROA % is displayed in the 30-year financial page.

Dearborn Bancorp (OTCPK:DEAR) 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: Mar. 2011 )
=	Net Income	/	Total Assets
=	0.616	/	906.339
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(0.616 / 34.576)	*	(34.576 / 906.339)
=	Net Margin %	*	Asset Turnover
=	1.78 %	*	0.0381
=	0.07 %

Note: The Net Income data used here is four times the quarterly (Mar. 2011) net income data. The Revenue data used here is four times the quarterly (Mar. 2011) 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.

Dearborn Bancorp ROA % Related Terms

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