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RadioShack (FRA:TAN) ROA % : -20.05% (As of Dec. 2013)


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What is RadioShack ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. RadioShack's annualized Net Income for the quarter that ended in Dec. 2013 was €-292 Mil. RadioShack's average Total Assets over the quarter that ended in Dec. 2013 was €1,457 Mil. Therefore, RadioShack's annualized ROA % for the quarter that ended in Dec. 2013 was -20.05%.

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

FRA:TAN's ROA % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 2.17
* Ranked among companies with meaningful ROA % only.

RadioShack ROA % Historical Data

The historical data trend for RadioShack'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.

RadioShack ROA % Chart

RadioShack Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.43 9.41 3.33 -6.24 -20.05

RadioShack Semi-Annual Data
Dec95 Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROA % Get a 7-Day Free Trial 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 8.43 9.41 3.33 -6.24 -20.05

Competitive Comparison of RadioShack's ROA %

For the Specialty Retail subindustry, RadioShack'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.


RadioShack's ROA % Distribution in the Retail - Cyclical Industry

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

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



RadioShack ROA % Calculation

RadioShack's annualized ROA % for the fiscal year that ended in Dec. 2013 is calculated as:

ROA %=Net Income (A: Dec. 2013 )/( (Total Assets (A: Dec. 2012 )+Total Assets (A: Dec. 2013 ))/ count )
=-292.146/( (1751.914+1161.576)/ 2 )
=-292.146/1456.745
=-20.05 %

RadioShack's annualized ROA % for the quarter that ended in Dec. 2013 is calculated as:

ROA %=Net Income (Q: Dec. 2013 )/( (Total Assets (Q: Dec. 2012 )+Total Assets (Q: Dec. 2013 ))/ count )
=-292.146/( (1751.914+1161.576)/ 2 )
=-292.146/1456.745
=-20.05 %

* 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 one times the annual (Dec. 2013) net income data. ROA % is displayed in the 30-year financial page.


RadioShack  (FRA:TAN) 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: Dec. 2013 )
=Net Income/Total Assets
=-292.146/1456.745
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-292.146 / 2507.039)*(2507.039 / 1456.745)
=Net Margin %*Asset Turnover
=-11.65 %*1.721
=-20.05 %

Note: The Net Income data used here is one times the annual (Dec. 2013) net income data. The Revenue data used here is one times the annual (Dec. 2013) 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.


RadioShack ROA % Related Terms

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


RadioShack (FRA:TAN) Business Description

Traded in Other Exchanges
N/A
Address
RS Legacy Corp, formerly RadioShack Corp was incorporated in 1967. The Company, along with its subsidiaries, is primarily engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain. At December 31, 2013, it operated 4,297 U.S. company-operated stores under the RadioShack brand located throughout the United States, as well as in Puerto Rico and the U.S. Virgin Islands. These stores are located in strip centers and shopping malls, as well as individual storefronts. Each location carries a broad assortment of both name brand and private brand consumer electronics products. The Company's product lines are categorized into two platforms; namely mobility and retail. Its mobility platform includes postpaid and prepaid wireless handsets, commissions, residual income, prepaid wireless airtime, tablet devices, and e-readers. The retail platform includes remaining consumer electronics product categories and related accessories; batteries and power products; and technical products. The Company has other sales channels and support operations such as: Dealer Outlets, RadioShack de Mexico, RadioShack.com, Distribution Centers, RadioShack Technology Services and RadioShack Global Sourcing. The Company owns or is licensed to use many trademarks and service marks related to its RadioShack stores in the United States and in foreign countries. Its private brand manufactured products are sold under the RadioShack, AUVIO, Enercell and Gigaware trademark. It also owns patents and patent applications relating to consumer electronics products. The Company competes in the sale of its products and services with several retail formats, including national, regional, and independent consumer electronics retailers. It competes with department and specialty retail stores in certain product categories. It competes with wireless providers in mobility platform through their own retail and online presence. It also competes with big-box retailers, discount and warehouse retailers, and Internet retailers. The Company is subject to foreign, federal, state, and local laws and regulations including, but not limited to, the Fair Labor Standards Act and ERISA, each as amended, and regulations promulgated by the Federal Trade Commission, SEC, Internal Revenue Service, Department of Labor, Occupational Safety and Health Administration, and Environmental Protection Agency.

RadioShack (FRA:TAN) Headlines

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