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Bassett Furniture Industries ROIC %

: 10.14% (As of May. 2022)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bassett Furniture Industries's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2022 was 10.14%.

As of today (2022-08-14), Bassett Furniture Industries's WACC % is 8.70%. Bassett Furniture Industries's ROIC % is 6.53% (calculated using TTM income statement data). Bassett Furniture Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Bassett Furniture Industries ROIC % Historical Data

The historical data trend for Bassett Furniture Industries's ROIC % 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 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.71 5.36 3.69 -0.24 5.84

Bassett Furniture Industries Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
ROIC % 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.19 3.79 6.60 5.54 10.14

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Bassett Furniture Industries's ROIC %, along with its competitors' market caps and ROIC % 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.

   

Bassett Furniture Industries ROIC % Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Bassett Furniture Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Bassett Furniture Industries's ROIC % falls into.



Bassett Furniture Industries ROIC % Calculation

Bassett Furniture Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Nov. 2021 is calculated as:

ROIC % (A: Nov. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Nov. 2020 ) + Invested Capital (A: Nov. 2021 ))/ count )
=25.999 * ( 1 - 25.57% )/( (325.675 + 336.495)/ 2 )
=19.3510557/331.085
=5.84 %

where

Invested Capital(A: Nov. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=402.549 - 34.567 - ( 63.514 - max(0, 118.371 - 160.678+63.514))
=325.675

Bassett Furniture Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in May. 2022 is calculated as:

ROIC % (Q: May. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2022 ) + Invested Capital (Q: May. 2022 ))/ count )
=44.048 * ( 1 - 25.44% )/( (350.085 + 297.476)/ 2 )
=32.8421888/323.7805
=10.14 %

where

Invested Capital(Q: Feb. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=424.057 - 24.377 - ( 49.595 - max(0, 150.344 - 236.477+49.595))
=350.085

Invested Capital(Q: May. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=413.753 - 26.952 - ( 89.325 - max(0, 121.086 - 221.722+89.325))
=297.476

Note: The Operating Income data used here is four times the quarterly (May. 2022) 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.


Bassett Furniture Industries  (NAS:BSET) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Bassett Furniture Industries's WACC % is 8.70%. Bassett Furniture Industries's ROIC % is 6.53% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of 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.


Bassett Furniture Industries ROIC % Related Terms

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Bassett Furniture Industries Business Description

Bassett Furniture Industries logo
Traded in Other Exchanges
N/A
Address
3525 Fairystone Park Highway, P.O. Box 626, Bassett, VA, USA, 24055
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. The Logistical Services segment offers shipping, delivery, and warehousing services.
Executives
Battle Emma S. director 101 NORTH CHERRY STREET, SUITE 501 WINSTON SALEM NC 27101
Lucas Stefanie Jane officer: SVP, Chief Merchandising Offic P.O. BOX 626 BASSETT VA 24055
Kelchner-strong Kara Ann officer: SVP, Customer Experience Offic P.O. BOX 626 BASSETT VA 24055
Hamlet Virginia W. director P.O. BOX 626 BASSETT VA 24055
Belk John R director BELK INC 2801 WEST TYVOLA ROAD CHARLOTTE NC 28217-4500
Baker David C officer: SVP, Corporate Retail 1012 SHERATON COURT MARTINSVILLE VA 24112
Hawn Jack Leroy Jr officer: Pres. of Zenith Freight Lines 1123 4TH STREET SW CONOVER NC 28613
Cohenour Bruce officer: SR VP/SALES & MERCHANDISING HOOKER FURNITURE CORPORATION 440 EAST COMMONWEALTH BLVD MARTINSVILLE VA 24112
Mcdowell John Walter director 2826 LAZY LANE WINSTON SALEM NC 27106
Daniel John Michael officer: V P, Chief Accounting Officer P O BOX 626 3525 FAIRYSTONE PARK HWY BASSETT VA 24055
Cashman Kristina K director
Camp Jason officer: Senior VP, Retail C/O RESTORATION HARDWARE, INC. 15 KOCH ROAD, SUITE J CORTE MADERA CA 94925
Pond Dale director
Stonecipher David A director BASSETT FURNITURE INDUSTRIES INC PO BOX 626 BASSETT VA 24055
Haworth Howard H director BASSETT FURNITURE INDUSTRIES INC P O BOX 626 BASSETT VA 24055

Bassett Furniture Industries Headlines

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