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California Style Palms (California Style Palms) ROA % : -560.32% (As of Sep. 2006)


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What is California Style Palms ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. California Style Palms's annualized Net Income for the quarter that ended in Sep. 2006 was $-18.05 Mil. California Style Palms's average Total Assets over the quarter that ended in Sep. 2006 was $3.22 Mil. Therefore, California Style Palms's annualized ROA % for the quarter that ended in Sep. 2006 was -560.32%.

The historical rank and industry rank for California Style Palms's ROA % or its related term are showing as below:

CFPI's ROA % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 3.01
* Ranked among companies with meaningful ROA % only.

California Style Palms ROA % Historical Data

The historical data trend for California Style Palms'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.

California Style Palms ROA % Chart

California Style Palms Annual Data
Trend Jan97 Jan98 Jan99 Jan00 Jan01 Jan02 Jan03 Mar05
ROA %
Get a 7-Day Free Trial -14.48 -20.08 -34.30 -51.42 -179.83

California Style Palms Quarterly Data
Jul00 Oct00 Jan01 Apr01 Jul01 Oct01 Jan02 Apr02 Jul02 Oct02 Jan03 Apr03 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06
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 -132.05 -226.02 -513.90 -380.34 -560.32

Competitive Comparison of California Style Palms's ROA %

For the Farm Products subindustry, California Style Palms'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.


California Style Palms's ROA % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, California Style Palms's ROA % distribution charts can be found below:

* The bar in red indicates where California Style Palms's ROA % falls into.



California Style Palms ROA % Calculation

California Style Palms's annualized ROA % for the fiscal year that ended in Mar. 2005 is calculated as:

ROA %=Net Income (A: Mar. 2005 )/( (Total Assets (A: Jan. 2003 )+Total Assets (A: Mar. 2005 ))/ count )
=-5.805/( (3.688+2.768)/ 2 )
=-5.805/3.228
=-179.83 %

California Style Palms's annualized ROA % for the quarter that ended in Sep. 2006 is calculated as:

ROA %=Net Income (Q: Sep. 2006 )/( (Total Assets (Q: Jun. 2006 )+Total Assets (Q: Sep. 2006 ))/ count )
=-18.048/( (3.266+3.176)/ 2 )
=-18.048/3.221
=-560.32 %

* 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 (Sep. 2006) net income data. ROA % is displayed in the 30-year financial page.


California Style Palms  (OTCPK:CFPI) 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: Sep. 2006 )
=Net Income/Total Assets
=-18.048/3.221
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-18.048 / 14.292)*(14.292 / 3.221)
=Net Margin %*Asset Turnover
=-126.28 %*4.4371
=-560.32 %

Note: The Net Income data used here is four times the quarterly (Sep. 2006) net income data. The Revenue data used here is four times the quarterly (Sep. 2006) 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.


California Style Palms ROA % Related Terms

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California Style Palms (California Style Palms) Business Description

Traded in Other Exchanges
N/A
Address
349 North Renee Street, Orange, CA, USA, 92869-3122
California Style Palms Inc is engaged in selling and installation of decorative palm trees. It owns and operates the assets, with the exception of the real estate, of Gregory Palm Farms, LLC, a fourth-generation farmers company who live to grow its own products. The company owns and operates two farms in California, and have set up central location in Orange, Orange County. It derives revenues primarily from the sale and installation of decorative palm trees.
Executives
Andrew C Schmidt director 1700 CARNEGIE AVE, SUITE 100, SANTA ANA CA 92705

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