Frankland River Olive Co (ASX:FLR) ROE %: -8.89% (As of Dec. 2015)


What is Frankland River Olive Co ROE %?

Frankland River Olive Co ASX:FLR ROE % is -8.89% as of Dec. 2015. The stock has 8 warning signs investors should review.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Frankland River Olive Co's annualized net income for the quarter that ended in Dec. 2015 was A$-0.64 Mil. Frankland River Olive Co's average Total Stockholders Equity over the quarter that ended in Dec. 2015 was A$7.20 Mil. Therefore, Frankland River Olive Co's annualized ROE % for the quarter that ended in Dec. 2015 was -8.89%.

The historical rank and industry rank for Frankland River Olive Co's ROE % or its related term are showing as below:

ASX:FLR' s ROE % Range Over the Past 10 Years
Min: -96.06   Med: -15.86   Max: -4.9
Current: -96.06

During the past 9 years, Frankland River Olive Co's highest ROE % was -4.90%. The lowest was -96.06%. And the median was -15.86%.

ASX:FLR's ROE % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 6.72 vs ASX:FLR: -96.06

Frankland River Olive Co  (ASX:FLR) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2015 )
=Net Income/Total Stockholders Equity
=-0.64/7.1955
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-0.64 / 3.384)*(3.384 / 18.1685)*(18.1685 / 7.1955)
=Net Margin %*Asset Turnover*Equity Multiplier
=-18.91 %*0.1863*2.525
=ROA %*Equity Multiplier
=-3.52 %*2.525
=-8.89 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2015 )
=Net Income/Total Stockholders Equity
=-0.64/7.1955
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-0.64 / -0.64) * (-0.64 / 0.078) * (0.078 / 3.384) * (3.384 / 18.1685) * (18.1685 / 7.1955)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * -8.2051 * 2.3 % * 0.1863 * 2.525
=-8.89 %

Note: The net income data used here is two times the semi-annual (Dec. 2015) net income data. The Revenue data used here is two times the semi-annual (Dec. 2015) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Frankland River Olive Co ROE % Related Terms


Frankland River Olive Co ROE % Historical Data

* Premium members only.

The historical data trend for Frankland River Olive Co's ROE % 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.

Frankland River Olive Co ROE % Chart

Frankland River Olive Co Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15
ROE %
Get a 7-Day Free Trial Premium Member Only -6.07 -15.86 -4.90 -77.94 -17.00

Frankland River Olive Co Semi-Annual Data
Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15
ROE % 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 -5.29 -151.34 -20.72 -13.33 -8.89

Frankland River Olive Co ROE % Competitor Comparison

For the Farm Products subindustry, Frankland River Olive Co's ROE %, along with its competitors' market caps and ROE % 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.


Frankland River Olive Co ROE % vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Frankland River Olive Co's ROE % distribution charts can be found below:

* The bar in red indicates where Frankland River Olive Co's ROE % falls into.



Frankland River Olive Co ROE % Calculation

Frankland River Olive Co's annualized ROE % for the fiscal year that ended in Jun. 2015 is calculated as

ROE %=Net Income (A: Jun. 2015 )/( (Total Stockholders Equity (A: Jun. 2014 )+Total Stockholders Equity (A: Jun. 2015 ))/ count )
=-1.367/( (8.723+7.356)/ 2 )
=-1.367/8.0395
=-17.00 %

Frankland River Olive Co's annualized ROE % for the quarter that ended in Dec. 2015 is calculated as

ROE %=Net Income (Q: Dec. 2015 )/( (Total Stockholders Equity (Q: Jun. 2015 )+Total Stockholders Equity (Q: Dec. 2015 ))/ count )
=-0.64/( (7.356+7.035)/ 2 )
=-0.64/7.1955
=-8.89 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Dec. 2015) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -8.89% mean?
Frankland River Olive Co (ASX:FLR) has a ROE % of -8.89% as of Dec. 2015. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Frankland River Olive Co and its competitors.
Is Frankland River Olive Co's ROE % too high?
Frankland River Olive Co's current ROE % is -8.89%.
How does Frankland River Olive Co's ROE % compare to competitors?
Frankland River Olive Co's ROE % of -8.89% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROE % is 6.72. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Consumer Packaged Goods company?
The median ROE % among Consumer Packaged Goods companies is 6.72, based on 1,916 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Frankland River Olive Co and its competitors. For the Consumer Packaged Goods industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frankland River Olive Co's current ROE % is -8.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frankland River Olive Co stock overvalued right now?
Frankland River Olive Co (ASX:FLR) has a current ROE % of -8.89%. The current ROE % is -8.89%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Frankland River Olive Co (ASX:FLR), the current ROE % is -8.89% as of Dec. 2015. 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.

Frankland River Olive Co Business Description

Frankland River Olive Co Ltd was established in 1999. The Company is engaged in growing, harvesting, processing and sale of extra virgin olive oil for Australian and international markets.