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FSTR (L.B. Foster Co) ROA % : 3.45% (As of Jun. 2024)


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What is L.B. Foster Co ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. L.B. Foster Co's annualized Net Income for the quarter that ended in Jun. 2024 was $11.4 Mil. L.B. Foster Co's average Total Assets over the quarter that ended in Jun. 2024 was $329.8 Mil. Therefore, L.B. Foster Co's annualized ROA % for the quarter that ended in Jun. 2024 was 3.45%.

The historical rank and industry rank for L.B. Foster Co's ROA % or its related term are showing as below:

FSTR' s ROA % Range Over the Past 10 Years
Min: -29.52   Med: 0.73   Max: 10.8
Current: 2.22

During the past 13 years, L.B. Foster Co's highest ROA % was 10.80%. The lowest was -29.52%. And the median was 0.73%.

FSTR's ROA % is ranked worse than
64.89% of 974 companies
in the Transportation industry
Industry Median: 3.745 vs FSTR: 2.22

L.B. Foster Co ROA % Historical Data

The historical data trend for L.B. Foster Co'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.

L.B. Foster Co ROA % Chart

L.B. Foster Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.80 1.96 1.02 -12.87 0.43

L.B. Foster Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 4.11 0.60 -0.53 5.55 3.45

Competitive Comparison of L.B. Foster Co's ROA %

For the Railroads subindustry, L.B. Foster Co'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.


L.B. Foster Co's ROA % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, L.B. Foster Co's ROA % distribution charts can be found below:

* The bar in red indicates where L.B. Foster Co's ROA % falls into.



L.B. Foster Co ROA % Calculation

L.B. Foster Co's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=1.464/( (365.31+313.206)/ 2 )
=1.464/339.258
=0.43 %

L.B. Foster Co's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Mar. 2024 )+Total Assets (Q: Jun. 2024 ))/ count )
=11.388/( (326.401+333.261)/ 2 )
=11.388/329.831
=3.45 %

* 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 (Jun. 2024) net income data. ROA % is displayed in the 30-year financial page.


L.B. Foster Co  (NAS:FSTR) 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: Jun. 2024 )
=Net Income/Total Assets
=11.388/329.831
=(Net Income / Revenue)*(Revenue / Total Assets)
=(11.388 / 563.184)*(563.184 / 329.831)
=Net Margin %*Asset Turnover
=2.02 %*1.7075
=3.45 %

Note: The Net Income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (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.


L.B. Foster Co ROA % Related Terms

Thank you for viewing the detailed overview of L.B. Foster Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


L.B. Foster Co Business Description

Traded in Other Exchanges
Address
415 Holiday Drive, Suite 100, Pittsburgh, PA, USA, 15220
L.B. Foster Co is a us-based firm engaged in the manufacturing, fabrication, and distribution of products and services, especially for the rail, construction, energy, and utility industries. The company operates its business through three segments: Rail Technologies and Services; Precast Concrete Products and Steel Products and Measurement. Its principal business activity involves providing new and used rail, trackwork, and accessories, producing concrete railroad ties, insulated rail joints, power rail, track fasteners, cover boards, and sales of sells and rents steel sheet piling, H-bearing pile, and other piling products for foundation and earth retention requirements. It generates the majority of its revenues from the Rail Technologies and Services segment.
Executives
Raymond T Betler director 1001 AIR BRAKE AVENUE, WILMERDING PA 15148
William M Thalman officer: Senior VP & CFO C/O LB FOSTER COMPANY, 415 HOLIDAY DRIVE, PITTSBURGH PA 15220
Brian Hunter Friedman officer: VP, Steel Prods. & Measurement 415 HOLIDAY DRIVE, SUITE 100, PITTSBURGH PA 15220
Sean M Reilly officer: Controller TOLLGRADE COMMUNICATIONS INC, 493 NIXON RD., CHESWICK PA 15024
Janet Lee director 2600 ANSYS DRIVE, CANONSBURG PA 15317
Diane B Owen director
Dirk Junge director 165 TOWNSHIP LINE RD, JENKINTOWN PA 19046
John E Kunz director 522 N. MACEWEN DRIVE, OSPREY FL 34229
Bruce Ernest Thompson director C/O L.B. FOSTER COMPANY, 415 HOLIDAY DRIVE, SUITE 100, PITTSBURGH PA 15220
Alexander B Jones other: See Explanation of Responses 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
Aron R. English 10 percent owner 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
22nw Gp, Inc. 10 percent owner 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
Bryson Hirai-hadley other: See Explanation of Responses 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
22nw Fund, Lp 10 percent owner 1455 NW LEARY WAY, SUITE 400, SEATTLE WA 98107
22nw, Lp 10 percent owner 590 1ST AVE S, UNIT C1, SEATTLE WA 98104

L.B. Foster Co Headlines

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