ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Fresh Market's annualizedNet Income for the quarter that ended in Jan. 2016 was $91 Mil.
Fresh Market's average Total Assets over the quarter that ended in Jan. 2016 was $570 Mil. Therefore, Fresh Market's annualized ROA % for the quarter that ended in Jan. 2016 was 16.06%.
The historical rank and industry rank for Fresh Market's ROA % or its related term are showing as below:
TFM's ROA % is not ranked *
in the Retail - Defensive industry.
Industry Median: 3.32 * Ranked among companies with meaningful ROA % only.
Fresh Market ROA % Historical Data
The historical data trend for Fresh Market'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.
For the Grocery Stores subindustry, Fresh Market'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.
Fresh Market's ROA % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Fresh Market's ROA % distribution charts can be found below:
* The bar in red indicates where Fresh Market's ROA % falls into.
Fresh Market ROA % Calculation
Fresh Market's annualized ROA % for the fiscal year that ended in Jan. 2016 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 (Jan. 2016) net income data.
ROA % is displayed in the 30-year financial page.
Fresh Market (NAS:TFM) 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 (Jan. 2016) net income data. The Revenue data used here is four times the quarterly (Jan. 2016) 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.
Fresh Market ROA % Related Terms
Thank you for viewing the detailed overview of Fresh Market's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Fresh Market, Inc., is a Delaware corporation and it was founded in 1982. The Company is a specialty retailer focused on creating an extraordinary food shopping experience for its customers. It provides high-quality food products, with an emphasis on fresh, premium perishables and an uncompromising commitment to customer service. As of January 26, 2014, the Company operates 151 stores in 26 states. It offers fresh, carefully selected, high-quality food products focused on perishable categories. Examples of its offerings include hand-trimmed steaks that are aged for tenderness, fresh seafood delivered up to six times per week, hand-stacked produce that is colorfully displayed and French-style baguettes baked in-store each morning. The Company's stores average approximately 21,000 square feet, compared to the approximately 40,000 to 60,000 square foot stores operated by many conventional supermarkets. The Company's distribution strategy is to capitalize on the capabilities of best-in-class third-party logistics providers and, as such, it does not own warehouses, distribution facilities or transportation equipment. The Company outsources substantially all of its logistics functions to third-party distributors and vendors. Its trademarks, including its registered The Fresh Market, Experience the Food and TFM trademarks are valuable assets that reinforce its customers' favorable perception of its stores. The Company's competition varies and includes national conventional supermarkets such as Kroger and Safeway, regional supermarkets such as Harris Teeter and Publix, national superstores such as Wal-Mart and Target, alternative food retailers such as Whole Foods and Trader Joe's, and local supermarkets, natural foods stores, smaller specialty stores and farmers' markets. The Company's stores are subject to various local, state, federal and international laws, regulations and administrative practices affecting its business.
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