Financial Ratios Explained, ROA, ROI

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Return on Investment (ROA)- Return on Assets- tells us how profitable the company is relative to its assets and how effiicent management is at using assets to generate earnings. Here, FG has an ROA of -.01 (-.01%) in the most recent ration while the industry standard is 6.03 (6.03%) most recently. This means that FG is not profitable at all since it has a negative net income. Here the expenses exceed the revenue and it is not making money. Even though it used to be profitable in past years (the positive ROA), it was still not earning as much for the assets it has as the industry average for this year. http://www.investopedia.com/terms/r/returnonassets.asp

Return on Equity (ROE)- tells us how how profitable the company is as generated by the money the shareholders have invested. Here, FG is not making any money on the equity invested (0%)(although not really losing money either). The industry average is 34.25 (34.25%). So in this respect, while FG is not really making a profit based on the equity invested, but the industry is making a profit and is thus doing much better. http://www.investopedia.com/terms/r/returnonequity.asp

If you would like help calculating the Return on Equity of common stockholders, here is the formula: return on common equity (ROCE) = net income - preferred dividends / common equity.
- the explanation for this ratio is the same as above

The P/E ratio is the amount of growth projected for the company. In other words, how much an investor is willing to pay per share for a $1 in growth. The higher the ratio, the better the growth potential of the company is projected to be. Here, FG has a P/E ration of 213 which is very high. The industry ratio is 19.18. I would check the FG ratio again to make sure it's correct but if it is, it means that investors are willing to pay $213 for $1 of current earnings on FG stock, but the for the industry the investor is willing to pay a lot less. http://www.investopedia.com/terms/p/price-earningsratio.asp

Price/Free Cash flow ratio- This compares the market price to free cash flow and the higher this measure, the more expensive the company is considered. If a company generates 200 million in operating cash flow and spends $50 million on capital expenditures, it generates cash flow of $150 million. If the company has a market cap of $5 billion, the company trades at 33 times free cash flow ($5 billion/$150 million). Here, FG has a Price/Free Cash flow ratio of -8.05 while the industry average is 35.08. The industry trades at about 35 times free cash flow while FG has a negative ratio which means its cash flow is negative and it does not really have any cash flow. http://www.investopedia.com/terms/p/pricetofreecashflow.asp

Earnings per share- This is an indicator of the company's profitability, the profit allocated for each outstanding share of common ...