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Furniture Brands International, (FRA:FBN1) ROA % : -28.30% (As of Jun. 2013)


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What is Furniture Brands International, ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Furniture Brands International,'s annualized Net Income for the quarter that ended in Jun. 2013 was €-123.8 Mil. Furniture Brands International,'s average Total Assets over the quarter that ended in Jun. 2013 was €437.4 Mil. Therefore, Furniture Brands International,'s annualized ROA % for the quarter that ended in Jun. 2013 was -28.30%.

The historical rank and industry rank for Furniture Brands International,'s ROA % or its related term are showing as below:

FRA:FBN1's ROA % is not ranked *
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 3.06
* Ranked among companies with meaningful ROA % only.

Furniture Brands International, ROA % Historical Data

The historical data trend for Furniture Brands International,'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.

* Premium members only.

Furniture Brands International, ROA % Chart

Furniture Brands International, Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -32.73 -11.84 -5.72 -6.80 -7.68

Furniture Brands International, Quarterly Data
Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13
ROA % 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 -4.42 -11.09 -14.36 -14.06 -28.30

Competitive Comparison of Furniture Brands International,'s ROA %

For the Furnishings, Fixtures & Appliances subindustry, Furniture Brands International,'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.


Furniture Brands International,'s ROA % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Furniture Brands International,'s ROA % distribution charts can be found below:

* The bar in red indicates where Furniture Brands International,'s ROA % falls into.



Furniture Brands International, ROA % Calculation

Furniture Brands International,'s annualized ROA % for the fiscal year that ended in Dec. 2012 is calculated as:

ROA %=Net Income (A: Dec. 2012 )/( (Total Assets (A: Dec. 2011 )+Total Assets (A: Dec. 2012 ))/ count )
=-36.019/( (467.017+471.252)/ 2 )
=-36.019/469.1345
=-7.68 %

Furniture Brands International,'s annualized ROA % for the quarter that ended in Jun. 2013 is calculated as:

ROA %=Net Income (Q: Jun. 2013 )/( (Total Assets (Q: Mar. 2013 )+Total Assets (Q: Jun. 2013 ))/ count )
=-123.768/( (460.353+414.423)/ 2 )
=-123.768/437.388
=-28.30 %

* 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 (Jun. 2013) net income data. ROA % is displayed in the 30-year financial page.


Furniture Brands International,  (FRA:FBN1) 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 bank’s 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:

ROA %(Q: Jun. 2013 )
=Net Income/Total Assets
=-123.768/437.388
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-123.768 / 773.112)*(773.112 / 437.388)
=Net Margin %*Asset Turnover
=-16.01 %*1.7676
=-28.30 %

Note: The Net Income data used here is four times the quarterly (Jun. 2013) net income data. The Revenue data used here is four times the quarterly (Jun. 2013) 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.


Furniture Brands International, ROA % Related Terms

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Furniture Brands International, (FRA:FBN1) Business Description

Traded in Other Exchanges
N/A
Address
Furniture Brands International, Inc., is a Delaware corporation, which was organized in 1921 as a holding company. The Company is engaged in designing, manufacturing, sourcing and retailing of home furnishings. It markets products through a wide range of channels, including its own Thomasville retail stores and through interior designers, multi-line/independent retailers and mass merchant stores. Its portfolio includes Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge. Through these brands, the Company offers case goods, consisting of bedroom, dining room, and living room wood furniture; stationary upholstery products, consisting of sofas, loveseats, sectionals, and chairs; motion upholstered furniture, consisting of recliners and sleep sofas; occasional furniture, consisting of wood, metal and glass tables, accent pieces, home entertainment centers, and home office furniture; and decorative accessories and accent pieces. The Company's brands are featured in every price and product category in the residential furniture industry. Each of its brands targets specific customers in relation to style and price point. The raw materials used in manufacturing its products include lumber, veneers, plywood, fiberboard, particleboard, steel, paper, hardware, adhesives, finishing materials, glass, mirrored glass, fabrics, leathers, metals, stone, synthetics and upholstered filling material. The Company's products compete against domestic manufacturers, importers, and foreign manufacturers entering the United States market; as well as increased direct importing by some larger retailers. Its competitors include: Ashley Furniture Industries, Inc.; La-Z-Boy Incorporated; Ethan Allen Interiors Inc., and many other home furnishings retailers and manufacturers. The elements of competition include price, style, quality, service, brand and marketing.

Furniture Brands International, (FRA:FBN1) Headlines

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