ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Federal Life Group's annualizedNet Income for the quarter that ended in Mar. 2019 was $-0.55 Mil.
Federal Life Group's average Total Assets over the quarter that ended in Mar. 2019 was $283.30 Mil. Therefore, Federal Life Group's annualized ROA % for the quarter that ended in Mar. 2019 was -0.19%.
The historical rank and industry rank for Federal Life Group's ROA % or its related term are showing as below:
FLFG's ROA % is not ranked *
in the Insurance industry.
Industry Median: 2 * Ranked among companies with meaningful ROA % only.
Federal Life Group ROA % Historical Data
The historical data trend for Federal Life Group'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.
Competitive Comparison of Federal Life Group's ROA %
For the Insurance - Life subindustry, Federal Life Group'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.
Federal Life Group ROA % Distribution
For the Insurance industry and Financial Services sector, Federal Life Group's ROA % distribution charts can be found below:
* The bar in red indicates where Federal Life Group's ROA % falls into.
Federal Life Group ROA % Calculation
Federal Life Group's annualized ROA % for the fiscal year that ended in Dec. 2018 is calculated as:
* 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 (Mar. 2019) net income data.
ROA % is displayed in the 30-year financial page.
Federal Life Group (OTCPK:FLFG) 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:
Note:
The Net Income data used here is four times the quarterly (Mar. 2019) net income data. The Revenue data used here is four times the quarterly (Mar. 2019) 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.
Federal Life Group ROA % Related Terms
Thank you for viewing the detailed overview of Federal Life Group's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Federal Life Group (Federal Life Group) Business Description
Federal Life Group Inc provides life insurance and annuity products targeted to the middle American market. Its core business activities include the sale of life insurance and fixed index and fixed rate annuities. Products offered by the company include Lifetime Coverage, Specific Period of Time Coverage, Flexible Coverage, Long-Term Growth with Fixed and Index-Linked Options, Multi-Pay Retirement Savings Plan, Single-Pay Retirement Savings Plan, Immediate Guaranteed Retirement Income, Final Expense Plan, Final Expense Plan - Limited Health Issues and Single-Pay Permanent Life.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FLFG has been successfully added to your 