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SRSCQ (Sears Canada) Return-on-Tangible-Asset : -47.13% (As of Apr. 2017)


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What is Sears Canada Return-on-Tangible-Asset?

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Sears Canada's annualized Net Income for the quarter that ended in Apr. 2017 was $-430 Mil. Sears Canada's average total tangible assets for the quarter that ended in Apr. 2017 was $912 Mil. Therefore, Sears Canada's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2017 was -47.13%.

The historical rank and industry rank for Sears Canada's Return-on-Tangible-Asset or its related term are showing as below:

SRSCQ's Return-on-Tangible-Asset is not ranked *
in the Retail - Cyclical industry.
Industry Median: 2.26
* Ranked among companies with meaningful Return-on-Tangible-Asset only.

Sears Canada Return-on-Tangible-Asset Historical Data

The historical data trend for Sears Canada's Return-on-Tangible-Asset 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.

Sears Canada Return-on-Tangible-Asset Chart

Sears Canada Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.93 17.57 -15.49 -3.70 -23.46

Sears Canada Quarterly Data
Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17
Return-on-Tangible-Asset 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 Premium Member Only -17.10 -24.82 -35.08 -14.38 -47.13

Competitive Comparison of Sears Canada's Return-on-Tangible-Asset

For the Department Stores subindustry, Sears Canada's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


Sears Canada's Return-on-Tangible-Asset Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Sears Canada's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Sears Canada's Return-on-Tangible-Asset falls into.


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Sears Canada Return-on-Tangible-Asset Calculation

Sears Canada's annualized Return-on-Tangible-Asset for the fiscal year that ended in Jan. 2017 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Jan. 2017 )  (A: Jan. 2016 )(A: Jan. 2017 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Jan. 2017 )  (A: Jan. 2016 )(A: Jan. 2017 )
=-243.495/( (1133.657+942.426)/ 2 )
=-243.495/1038.0415
=-23.46 %

Sears Canada's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2017 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Apr. 2017 )  (Q: Jan. 2017 )(Q: Apr. 2017 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Apr. 2017 )  (Q: Jan. 2017 )(Q: Apr. 2017 )
=-429.856/( (942.426+881.818)/ 2 )
=-429.856/912.122
=-47.13 %

* 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Apr. 2017) net income data.


Sears Canada  (OTCPK:SRSCQ) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset 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. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset 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 Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Sears Canada Return-on-Tangible-Asset Related Terms

Thank you for viewing the detailed overview of Sears Canada's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.


Sears Canada Business Description

Traded in Other Exchanges
N/A
Address
290 Yonge Street, Suite 700, Toronto, ON, CAN, M5B 2C3
Sears Canada Inc is in the sale of goods and services through the Company's Retail channels. It comprised of one reportable segment, Merchandising. Which includes its full-line department, Sears Home, Hometown, Outlet, Corbeil Electrique Inc. stores, and its Direct (catalog/internet) channel. It also includes service revenue related primarily to logistics services provided through the Company. Commission revenue includes travel, home improvement services, insurance, wireless and long-distance plans. Licensee fee revenue is comprised of payments received from licensees that operate within the Company stores.

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