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Fortress Investment Group LLC (NYSE:FIG)
Return on Assets
0.40% (As of Mar. 2014)

Return on assets is calculated as net income divided by its total assets. Fortress Investment Group LLC's annualized net income for the quarter that ended in Mar. 2014 was $12 Mil. Fortress Investment Group LLC's total assets for the quarter that ended in Mar. 2014 was $2,899 Mil. Therefore, Fortress Investment Group LLC's annualized return on assests (ROA) for the quarter that ended in Mar. 2014 was 0.40%.

FIG' s 10-Year Return on Assets Range
Min: -77.39   Max: 7.49
Current: 7.49

-77.39
7.49

During the past 13 years, Fortress Investment Group LLC's highest Return on Assets (ROA) was 7.49%. The lowest was -77.39%. And the median was 1.62%.

FIG's Return on Assetsis ranked higher than
73% of the 1288 Companies
in the Global Asset Management industry.

( Industry Median: 4.26 vs. FIG: 7.49 )

Definition

Fortress Investment Group LLC's annualized Return on Assets (ROA) for the fiscal year that ended in Dec. 2013 is calculated as:

Return on Assets (ROA) (A: Dec. 2013 )=Net Income (A: Dec. 2013 )/Total Assets (A: Dec. 2013 )
=200.447/2674.432
=7.49 %

Fortress Investment Group LLC's annualized Return on Assets (ROA) for the quarter that ended in Mar. 2014 is calculated as:

Return on Assets (ROA) (Q: Mar. 2014 )=Net Income (Q: Mar. 2014 )/Total Assets (Q: Mar. 2014 )
=11.744/2898.545
=0.40 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

In the calculation of annual return on assets, the net income of the last fiscal year is used. The total assets are from the end of year data. Strictly speaking, average total assets over the fiscal year should be used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2014) net income data. Return on assets is displayed in the 10-year financial page.


Explanation

Return on assets (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. ROAs can vary drastically across industries. Therefore, return on assets 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:

Return on Assets (ROA)(Q: Mar. 2014 )
=Net Income/Total Assets
=11.744/2898.545
=(Net Income / Revenue)*(Revenue / Total Assets)
=(11.744 / 310.166)*(310.166 / 2898.545)
=Net Profit Margin*Asset Turnover
=0.0379*0.107
=0.40 %

Note: The Net Income data used here is four times the quarterly (Mar. 2014) net income data.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 Return on Capital (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.


Related Terms

Return on Equity, Return on Capital, Return on Capital - Joel Greenblatt, Net Income, Total Assets


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Fortress Investment Group LLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ROA 1.971.621.87-3.01-77.39-15.34-13.70-19.433.637.49

Fortress Investment Group LLC Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ROA -16.48-5.680.960.1218.962.60-0.367.2021.800.40
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