ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Salvatore Ferragamo SpA's annualizedNet Income for the quarter that ended in Jun. 2024 was €11 Mil.
Salvatore Ferragamo SpA's average Total Assets over the quarter that ended in Jun. 2024 was €1,775 Mil. Therefore, Salvatore Ferragamo SpA's annualized ROA % for the quarter that ended in Jun. 2024 was 0.65%.
The historical rank and industry rank for Salvatore Ferragamo SpA's ROA % or its related term are showing as below:
LTS:0P52'
s ROA % Range Over the Past 10 Years
Min: -3.73 Med: 6.61 Max: 17.42
Current: 0.52
During the past 13 years, Salvatore Ferragamo SpA's highest ROA % was 17.42%. The lowest was -3.73%. And the median was 6.61%.
LTS:0P52's ROA % is ranked worse than 63.71% of 1116
companies
in the Retail - Cyclical industry
Industry Median: 2.335
vs LTS:0P52: 0.52
* 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.
Competitive Comparison of Salvatore Ferragamo SpA's ROA %
For the Luxury Goods subindustry, Salvatore Ferragamo SpA'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.
Salvatore Ferragamo SpA's ROA % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Salvatore Ferragamo SpA's ROA % distribution charts can be found below:
* The bar in red indicates where Salvatore Ferragamo SpA's ROA % falls into.
Salvatore Ferragamo SpA ROA % Calculation
Salvatore Ferragamo SpA's annualized ROA % for the fiscal year that ended in Dec. 2023 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 two times the semi-annual (Jun. 2024) net income data.
ROA % is displayed in the 30-year financial page.
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 two times the semi-annual (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 2024) 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.
Salvatore Ferragamo SpA ROA % Related Terms
Thank you for viewing the detailed overview of Salvatore Ferragamo SpA's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 1927, Salvatore Ferragamo is an Italian monobrand company mainly known for its footwear and accessories. The company generates about 45% of revenue in the fragmented footwear category, 40% in leather goods, 6% in apparel, and 7% in accessories. It was one of the pioneers in establishing a presence in Asia, where it generates 32% of sales and other emerging markets (8% of sales in Central and South America). Ferragamo generates 24% of revenue in Europe, 28% in the US, and 8% in Japan.
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