First Business Profitability Analysis
First Business Financial's market price can diverge from book value, the accounting figure shown on First Business's balance sheet. The three perspectives together offer a richer context than any single measure alone.
Value and price for First Business may converge over time but can differ substantially in any given period. For First Business, key inputs include a P/E ratio of 14.43, a P/B ratio of 1.26, a profit margin of 31.48%, and ROE of 14.34%.
First Business Financial Return On Asset TTM vs. Return On Equity TTM Fundamental Analysis
First Business Return On Asset TTM vs. Return On Equity TTM
First Business's Return on Equity of 14.34% reflects a healthy level of efficiency in converting shareholder capital into profit. This range generally supports both reinvestment capacity and shareholder distributions without relying excessively on financial leverage to inflate the return.
First Business |
| = | 0.14 |
First Business's Return on Assets of 1.24% is relatively low, which may reflect an asset-heavy business model or a period where income has not kept pace with asset growth. Low asset returns warrant examining whether the asset base is generating adequate revenue throughput.
First Business |
| = | 0.0124 |
The gap between First Business's ROE and ROA reveals significant financial leverage amplification. ROE is more than 11.56x ROA, meaning debt is substantially inflating equity returns. While this boosts the headline ROE figure, it also increases vulnerability to earnings volatility and rising interest costs.
First Business Return On Asset TTM Comparison
First Business is currently under evaluation in return on asset ttm among leading competitors.