ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Granite City Food & Brewery's annualizedNet Income for the quarter that ended in Jun. 2017 was $-3.5 Mil.
Granite City Food & Brewery's average Total Assets over the quarter that ended in Jun. 2017 was $69.2 Mil. Therefore, Granite City Food & Brewery's annualized ROA % for the quarter that ended in Jun. 2017 was -5.04%.
The historical rank and industry rank for Granite City Food & Brewery's ROA % or its related term are showing as below:
GCFB's ROA % is not ranked *
in the Restaurants industry.
Industry Median: 2.15 * Ranked among companies with meaningful ROA % only.
Granite City Food & Brewery (OTCPK:GCFB) 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 (Jun. 2017) net income data. The Revenue data used here is four times the quarterly (Jun. 2017) 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.
* 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 Restaurants subindustry, Granite City Food & Brewery'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.
Granite City Food & Brewery ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Granite City Food & Brewery's ROA % distribution charts can be found below:
* The bar in red indicates where Granite City Food & Brewery's ROA % falls into.
* 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. 2017) net income data.
ROA % is displayed in the 30-year financial page.
Granite City Food & Brewery (GCFB) has a ROA % of -5.04% as of Jun. 2017. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Granite City Food & Brewery and its competitors.
Is Granite City Food & Brewery's ROA % too high?
Granite City Food & Brewery's current ROA % is -5.04%.
How does Granite City Food & Brewery's ROA % compare to BDVB and DBUB?
Granite City Food & Brewery's ROA % of -5.04% can be compared against companies in the Restaurants industry. The industry median ROA % is 2.15. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Restaurants company?
The median ROA % among Restaurants companies is 2.15, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Granite City Food & Brewery and its competitors. For the Restaurants industry, the median ROA % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Granite City Food & Brewery's current ROA % is -5.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Granite City Food & Brewery stock overvalued right now?
Granite City Food & Brewery (GCFB) has a current ROA % of -5.04%. The current ROA % is -5.04%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Granite City Food & Brewery (GCFB), the current ROA % is -5.04% as of Jun. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Granite City Food & Brewery Ltd owns and operates a restaurant with an on-site brewery. The company operates two casual dining concepts which include Granite city food and brewery and Cadillac ranch all American bar and grill. The Granite city restaurant theme is upscale casual dining with a wide variety of menu items, which includes handcrafted beers finished on-site. Cadillac Ranch restaurants feature authentic, cuisine in a fun, dynamic environment. Its menu is diverse with offerings ranging from homemade meatloaf to pasta dishes. It has approximately 36 restaurants in over 10 states. In addition, it also operates a centralized beer production facility in Ellsworth, Iowa which facilitates the initial stages of its brewing process.
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