At the moment, the debt-to-equity of Ascena Retail Group, Inc. (NASDAQ:ASNA) is high, standing at 166.40, a figure that is higher than the 60.43 average recorded by the industry. This means that the company is currently holding a debt level at 1.33 B. ASNA shares have a strong debt-to-equity ratio but their quick ratio which reads 0.50 is strong and might cause problems for them later in the future.
Even though there was a rise of +0.13% in revenue, the company failed to succeed in outperforming the industry average of 11.83%. For the most recent quarter, the net income has dropped by -10.61%. This weakness in their income has affected them and thus increased their earnings to $130.70 M. The -8.51% yoy growth of ASNA’s revenue has gone down that of the industry average by -3.57%. For the past 12 months, Ascena Retail Group, Inc. revenue has gone down by -4.94%. The sustained growth in their revenue has helped boost their earnings per share.
Ascena Retail Group, Inc. (ASNA) has seen their earnings per share increased to $0.03 during the last quarter in comparison to the same quarter last year. They have recorded a -82.41% declining earnings per share earnings. They have recorded a -82.41% declining earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.04.
The 12-month return on equity has significantly fallen to -79.52 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Services sector, the industry average is 12.11 while 12.81 is of the sector.
In addition to their unfavorable P/E ratio, Ascena Retail Group, Inc. has maintained a gross margin of 58.04. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is -22.76 when compared to 6.08 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Ascena Retail Group, Inc. ROE is above 12.81 that of both the sector average.
The operating profit margin for Ascena Retail Group, Inc. (ASNA) is -19.76%, a figure which is considered to be weak. It has gone 7.34 from the -3.53 over the past 5 years. In addition to this, their operating margin is -27.1 lower than the industry average.
The net profit margin which stood at -3.66 on average in the past 5 years has dropped to -16.05 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 3.42.
Still some above discussed indicators of the $658.06M company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the ASNA shares to either perform positively or negatively when compared to other stocks. The primary strengths of Ascena Retail Group, Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.