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FTDL (FirsTime Design) ROE % : 12.39% (As of Dec. 2012)


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What is FirsTime Design ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. FirsTime Design's annualized net income for the quarter that ended in Dec. 2012 was $0.44 Mil. FirsTime Design's average Total Stockholders Equity over the quarter that ended in Dec. 2012 was $3.55 Mil. Therefore, FirsTime Design's annualized ROE % for the quarter that ended in Dec. 2012 was 12.39%.

The historical rank and industry rank for FirsTime Design's ROE % or its related term are showing as below:

FTDL's ROE % is not ranked *
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 5.89
* Ranked among companies with meaningful ROE % only.

FirsTime Design ROE % Historical Data

The historical data trend for FirsTime Design'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.

* Premium members only.

FirsTime Design ROE % Chart

FirsTime Design Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -188.23 - -42.48 -31.40 13.04

FirsTime Design Quarterly Data
Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12
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 Premium Member Only -88.33 13.97 13.89 12.08 12.39

Competitive Comparison of FirsTime Design's ROE %

For the Furnishings, Fixtures & Appliances subindustry, FirsTime Design'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.


FirsTime Design's ROE % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, FirsTime Design's ROE % distribution charts can be found below:

* The bar in red indicates where FirsTime Design's ROE % falls into.



FirsTime Design ROE % Calculation

FirsTime Design's annualized ROE % for the fiscal year that ended in Dec. 2012 is calculated as

ROE %=Net Income (A: Dec. 2012 )/( (Total Stockholders Equity (A: Dec. 2011 )+Total Stockholders Equity (A: Dec. 2012 ))/ count )
=0.446/( (3.235+3.605)/ 2 )
=0.446/3.42
=13.04 %

FirsTime Design's annualized ROE % for the quarter that ended in Dec. 2012 is calculated as

ROE %=Net Income (Q: Dec. 2012 )/( (Total Stockholders Equity (Q: Sep. 2012 )+Total Stockholders Equity (Q: Dec. 2012 ))/ count )
=0.44/( (3.495+3.605)/ 2 )
=0.44/3.55
=12.39 %

* 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 four times the quarterly (Dec. 2012) net income data. ROE % is displayed in the 30-year financial page.


FirsTime Design  (OTCPK:FTDL) 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. 2012 )
=Net Income/Total Stockholders Equity
=0.44/3.55
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.44 / 10.44)*(10.44 / 4.553)*(4.553 / 3.55)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.21 %*2.293*1.2825
=ROA %*Equity Multiplier
=9.65 %*1.2825
=12.39 %

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. 2012 )
=Net Income/Total Stockholders Equity
=0.44/3.55
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.44 / 0.44) * (0.44 / 0.528) * (0.528 / 10.44) * (10.44 / 4.553) * (4.553 / 3.55)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.8333 * 5.06 % * 2.293 * 1.2825
=12.39 %

Note: The net income data used here is four times the quarterly (Dec. 2012) net income data. The Revenue data used here is four times the quarterly (Dec. 2012) 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.


FirsTime Design ROE % Related Terms

Thank you for viewing the detailed overview of FirsTime Design's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


FirsTime Design Business Description

Traded in Other Exchanges
N/A
Address
W237 N2889 Woodgate Road, Suite F, Pewaukee, WI, USA, 53072
FirsTime Design Ltd, through its subsidiaries, designs, imports, and distributes decorative timepieces and other home decor products. It distributes commercial mattresses and bedding accessories. In addition, it offers custom packaging and product merchandising services. It sells its products through retailers in the United States. The group has manufacturing partners in China with some in Egypt, India, Italy, Taiwan, the United States, and Vietnam.
Executives
Thomas G Berlin 10 percent owner 37500 EAGLE ROAD, WILLOGHBY HILLS OH 44094
Douglas M Schosser director 127 PUBLIC SQUARE, CLEVELAND OH 44114-1306

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