Leons Furniture Return On Equity vs. Profit Margin

LNF Stock  CAD 27.12  0.46  1.73%   
Based on the measurements of profitability obtained from Leons Furniture's financial statements, Leons Furniture Limited is yielding more profit at the moment then in previous quarter. It has a moderate risk of reporting better profitability numbers in January. Profitability indicators assess Leons Furniture's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.13500414
Current Value
0.18
Quarterly Volatility
0.03925101
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Leons Furniture's Days Sales Outstanding is very stable compared to the past year. As of the 1st of December 2024, EV To Sales is likely to grow to 1.08, while Price To Sales Ratio is likely to drop 0.48. At this time, Leons Furniture's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 1st of December 2024, Operating Income is likely to grow to about 307.9 M, while Income Before Tax is likely to drop about 117 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.330.4413
Way Down
Pretty Stable
Net Profit Margin0.07910.0566
Significantly Up
Pretty Stable
Operating Profit Margin0.110.1195
Significantly Down
Slightly volatile
Pretax Profit Margin0.120.0743
Way Up
Very volatile
Return On Assets0.10.0625
Way Up
Very volatile
Return On Equity0.180.135
Significantly Up
Slightly volatile
For Leons Furniture profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Leons Furniture to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Leons Furniture Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Leons Furniture's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Leons Furniture Limited over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Leons Furniture's value and its price as these two are different measures arrived at by different means. Investors typically determine if Leons Furniture is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Leons Furniture's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Leons Furniture Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Leons Furniture's current stock value. Our valuation model uses many indicators to compare Leons Furniture value to that of its competitors to determine the firm's financial worth.
Leons Furniture Limited is currently regarded as number one stock in return on equity category among its peers. It also is currently regarded as number one stock in profit margin category among its peers fabricating about  0.41  of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Leons Furniture Limited is roughly  2.43 . At this time, Leons Furniture's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Leons Furniture by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Leons Furniture's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Leons Profit Margin vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Leons Furniture

Return On Equity

 = 

Net Income

Total Equity

 = 
0.13
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Leons Furniture

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.05 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Leons Profit Margin Comparison

Leons Furniture is currently under evaluation in profit margin category among its peers.

Leons Furniture Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Leons Furniture, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Leons Furniture will eventually generate negative long term returns. The profitability progress is the general direction of Leons Furniture's change in net profit over the period of time. It can combine multiple indicators of Leons Furniture, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income6.8 M7.1 M
Operating Income293.3 M307.9 M
Income Before Tax182.5 M117 M
Total Other Income Expense Net-110.8 M-105.2 M
Net Income182.5 M91.7 M
Income Tax Expense43.6 M34.1 M
Net Income From Continuing Ops138.9 M130.7 M
Net Income Applicable To Common Shares206.3 M128.5 M
Interest IncomeM10.5 M
Net Interest Income-19.5 M-20.4 M
Change To Netincome-2.9 M-2.8 M
Net Income Per Share 2.04  2.15 
Income Quality 1.39  1.07 
Net Income Per E B T 0.76  0.54 

Leons Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Leons Furniture. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Leons Furniture position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Leons Furniture's important profitability drivers and their relationship over time.

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Other Information on Investing in Leons Stock

To fully project Leons Furniture's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Leons Furniture at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Leons Furniture's income statement, its balance sheet, and the statement of cash flows.
Potential Leons Furniture investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Leons Furniture investors may work on each financial statement separately, they are all related. The changes in Leons Furniture's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Leons Furniture's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.