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Barnes & Noble (Barnes & Noble) ROE %

: -16.32% (As of Apr. 2019)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Barnes & Noble's annualized net income for the quarter that ended in Apr. 2019 was $-75 Mil. Barnes & Noble's average Total Stockholders Equity over the quarter that ended in Apr. 2019 was $459 Mil. Therefore, Barnes & Noble's annualized ROE % for the quarter that ended in Apr. 2019 was -16.32%.

The historical rank and industry rank for Barnes & Noble's ROE % or its related term are showing as below:

BKS's ROE % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 6.03
* Ranked among companies with meaningful ROE % only.

Barnes & Noble ROE % Historical Data

The historical data trend for Barnes & Noble'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.

Barnes & Noble Annual Data
Trend Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.27 -2.46 3.74 -25.44 0.88

Barnes & Noble Quarterly Data
Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19
ROE % 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 Premium Member Only Premium Member Only Premium Member Only -19.71 -15.74 -25.18 60.17 -16.32

Competitive Comparison

For the Specialty Retail subindustry, Barnes & Noble'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.


Barnes & Noble ROE % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Barnes & Noble's ROE % distribution charts can be found below:

* The bar in red indicates where Barnes & Noble's ROE % falls into.



Barnes & Noble ROE % Calculation

Barnes & Noble's annualized ROE % for the fiscal year that ended in Apr. 2019 is calculated as

ROE %=Net Income (A: Apr. 2019 )/( (Total Stockholders Equity (A: Apr. 2018 )+Total Stockholders Equity (A: Apr. 2019 ))/ count )
=3.769/( (411.983+444.497)/ 2 )
=3.769/428.24
=0.88 %

Barnes & Noble's annualized ROE % for the quarter that ended in Apr. 2019 is calculated as

ROE %=Net Income (Q: Apr. 2019 )/( (Total Stockholders Equity (Q: Jan. 2019 )+Total Stockholders Equity (Q: Apr. 2019 ))/ count )
=-74.916/( (473.498+444.497)/ 2 )
=-74.916/458.9975
=-16.32 %

* 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 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 (Apr. 2019) net income data. ROE % is displayed in the 30-year financial page.


Barnes & Noble  (NYSE:BKS) 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: Apr. 2019 )
=Net Income/Total Stockholders Equity
=-74.916/458.9975
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-74.916 / 3021.732)*(3021.732 / 1744.8915)*(1744.8915 / 458.9975)
=Net Margin %*Asset Turnover*Equity Multiplier
=-2.48 %*1.7318*3.8015
=ROA %*Equity Multiplier
=-4.29 %*3.8015
=-16.32 %

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: Apr. 2019 )
=Net Income/Total Stockholders Equity
=-74.916/458.9975
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-74.916 / -92.512) * (-92.512 / -78.948) * (-78.948 / 3021.732) * (3021.732 / 1744.8915) * (1744.8915 / 458.9975)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8098 * 1.1718 * -2.61 % * 1.7318 * 3.8015
=-16.32 %

Note: The net income data used here is four times the quarterly (Apr. 2019) net income data. The Revenue data used here is four times the quarterly (Apr. 2019) 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.


Barnes & Noble ROE % Related Terms

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


Barnes & Noble (Barnes & Noble) Business Description

Traded in Other Exchanges
N/A
Address
122 Fifth Avenue, New York, NY, USA, 10011
Barnes & Noble is a United States-based company that is mainly engaged in retail of books and products of content, digital media, and educational products. The company operates in a multichannel model, including a physical bookstore network throughout the country, an e-commerce platform on BN.com, and its Nook digital business. The company offers books, magazines, music, DVDs, newspapers, and entertainment content, along with e-reading products under the Nook brand. Retail sales from physical stores and BN.com account for the majority of the company's total revenue.
Executives
Al Ferrara director 433 LAWNDALE DRIVE, SOUTH SALT LAKE CITY UT 84115
Mark D Carleton director 12300 LIBERTY BLVD., ENGLEWOOD CO 80112
Scott S Cowen director 7=6823 ST CHARLES AVE, NEW ORLEANS LA 70118
William Earl Wood officer: Exec. VP, Pres. of Digital 1901 CAPITAL PARKWAY, AUSTIN TX 78746
George Jr Campbell director 4 IRVING PLACE, NEW YORK NY 10003
Patricia Higgins director 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Irwin D Simon director C/O THE HAIN CELESTIAL GROUP INC., 1111 MARCUS AVENUE, LAKE SUCCESS NY 11042
Leonard Riggio director, 10 percent owner, officer: Executive Chairman 122 FIFTH AVE, NEW YORK NY 10011
Allen W Lindstrom officer: Chief Financial Officer C/O BARNES & NOBLE, INC., 122 FIFTH AVENUE, NEW YORK NY 10011
Bradley A. Feuer officer: VP, Gen. Counsel & Corp. Secy C/O BARNES & NOBLE, INC., 122 FIFTH AVENUE, NEW YORK NY 10011
Paul B Guenther director C/O GABELLI ASSET MANAGEMENT INC, ONE CORPORATE CENTER, RYE NY 16580
Joseph Charles Gorman officer: Executive VP, Operations C/O GNC HOLDINGS, INC. 300 SIXTH AVENUE PITTSBURGH PA 15222
Tim Mantel officer: Chief Merchandising Officer C/O BARNES & NOBLE, INC 122 FIFTH AVENUE NEW YORK NY 10011
Carl S Hauch officer: Vice President, Stores ADVANCE AUTO PARTS, INC, 5008 AIRPORT RD, ROANOKE VA 24012
Demos Parneros director, officer: Chief Executive Officer 483 BAY ST, 7TH FL NORTH TOWER, TORONTOON A1 999999999

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