Bassett Furniture Industries (Bassett Furniture Industries) Free Cash Flow

: $-5.8 Mil (TTM As of Feb. 2024)

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Bassett Furniture Industries's total free cash flow for the months ended in Feb. 2024 was $-9.8 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Feb. 2024 was $-5.8 Mil.

Bassett Furniture Industries's Free Cash Flow per Share for the months ended in Feb. 2024 was $-1.12. Its free cash flow per share for the trailing twelve months (TTM) ended in Feb. 2024 was $-0.67.

During the past 3 years, the average Free Cash Flow per Share Growth Rate was -64.20% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 13 years, Bassett Furniture Industries's highest 3-Year average Free Cash Flow per Share Growth Rate was 39.70% per year. The lowest was -64.20% per year. And the median was -4.70% per year.

Bassett Furniture Industries Free Cash Flow Historical Data

The historical data trend for Bassett Furniture Industries's Free Cash Flow 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.

Bassett Furniture Industries Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Free Cash Flow

-7.57

30.65

3.81

-24.27

1.24

Bassett Furniture Industries Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Free Cash Flow																-2.78	1.79	-3.42	5.64	-9.82

Bassett Furniture Industries Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Bassett Furniture Industries's Free Cash Flow for the fiscal year that ended in Nov. 2023 is calculated as

Free Cash Flow (A: Nov. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	18.724	+	-17.489
	=	1.2

Bassett Furniture Industries's Free Cash Flow for the quarter that ended in Feb. 2024 is calculated as

Free Cash Flow (Q: Feb. 2024 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-7.739	+	-2.076
	=	-9.8

Free Cash Flow for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-5.8 Mil.

Bassett Furniture Industries (NAS:BSET) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Feb24, Bassett Furniture Industries's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Feb24)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	1.00057143	/	15.5	+	-0.149
	=	-8.44 %

Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.

Bassett Furniture Industries Free Cash Flow Related Terms

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Bassett Furniture Industries (Bassett Furniture Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Bassett Furniture Industries Inc (NAS:BSET) » Definitions » Free Cash Flow

Comparable Companies

Traded in Other Exchanges

N/A

Address

3525 Fairystone Park Highway, P.O. Box 626, Bassett, VA, USA, 24055

Website

https://www.bassettfurniture.com

Bassett Furniture Industries Inc is a manufacturer, importer, and retailer of home furnishings products in the United States. It operates through the following segments: The Wholesale segment focuses on the design, manufacture, sourcing, sale, and distribution of furniture products. The Retail segment consists of company-owned stores.

Executives

Spilman Robert H Jr	director, officer: Pres & Chief Executive Officer	C/O BASSETT FURNITURE INDUSTRIES INC, PO BOX 626, BASSETT VA 24055
John Michael Daniel	officer: V P, Chief Accounting Officer	P O BOX 626, 3525 FAIRYSTONE PARK HWY, BASSETT VA 24055
Warden William C Jr	director	PO BOX 2328, HICKORY NC 28603-2328
David C Baker	officer: SVP, Corporate Retail	1012 SHERATON, COURT, MARTINSVILLE VA 24112
Emma S. Battle	director	101 NORTH CHERRY STREET, SUITE 501, WINSTON SALEM NC 27101
Virginia W. Hamlet	director	P.O. BOX 626, BASSETT VA 24055
Wampler William C Jr	director	510 CUMBERLAND STREET, BRISTOL VA 24201-4387
Bassett John E Iii	officer: vice President Global Sourcing	C/O BASSETT FURNITURE INDUSTRIES INC, PO BOX 626, BASSETT VA 24055
John R Belk	director	BELK INC, 2801 WEST TYVOLA ROAD, CHARLOTTE NC 28217-4500
Stefanie Jane Lucas	officer: SVP, Chief Merchandising Offic	P.O. BOX 626, BASSETT VA 24055
Kara Ann Kelchner-strong	officer: SVP, Customer Experience Offic	P.O. BOX 626, BASSETT VA 24055
Mark S Jordan	officer: Vice President Upholstery	BASSETT FURNITURE INDUSTRIES INC, PO BOX 626, BASSETT VA 24055
Jay R Hervey	officer: Vice Pres Sec & Gen Counsel
Bruce Cohenour	officer: SR VP/SALES & MERCHANDISING	HOOKER FURNITURE CORPORATION, 440 EAST COMMONWEALTH BLVD, MARTINSVILLE VA 24112
Kristina K Cashman	director