Slightly interesting news on Rockford Fosgate

[ramos 5,000+ posts]

Yeah, RF is one of those brands I'm not fond of, but the CA industry just wouldn't be the same without them. What would the noobs and retards worship without RF? Think of all the extra people riding the JL boner.

So are you calling me a noob or a retard ? I don't worship anything or anyone other than god. But I have quite the collection of rf gear , and am a big fanatic. //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

 

[Flipx99 5,000+ posts]

It is more of an accounting profit....investors who have been watching already anticipated this.

 

[Flipx99 5,000+ posts]

Well I just looked up their latest annual report filing with the SEC (10K) to take a quick look at their latest financial statements.
Data calculated comparing 2006 and 2005.

Their debt to asset ratio is 0.77, which is somewhat high and means that the majority of their assets are financed by debt (credit) instead of equity (shareholders). This is an increase from 2005, when it was 0.64. That means they are adopting increasingly risky financing strategies.

Their Asset Turnover was 2.12, which means for every $1 of asset they generate $2.12 of sales revenue. In 2005 it was 2.59, which means they are doing worse in this area compared to last year as well.

Their Net Profit Margin was most telling because it was 0.086. This is Net Income / Sales Revenue. It is an analysis of how well a company controls expenses. Rockford gets blasted by expenses and therefore ends up with a net loss instead of net income for the year ended 2006.

Basic overview: do not invest in Rockford Fosgate, do not become a dealer for them, etc. They cannot control their expenses and cannot generate enough revenue to overcome these expenses. They also are using debt financing and therefore won't be able to pay back their loans because they will have to take out more loans to do so. They may go under soon....

I have an accounting exam tomorrow, so this was a pretty good review.

Want a good laugh, look at TIE ratio.

 

[Flipx99 5,000+ posts]

Well I just looked up their latest annual report filing with the SEC (10K) to take a quick look at their latest financial statements.
Data calculated comparing 2006 and 2005.

Their debt to asset ratio is 0.77, which is somewhat high and means that the majority of their assets are financed by debt (credit) instead of equity (shareholders). This is an increase from 2005, when it was 0.64. That means they are adopting increasingly risky financing strategies.

Their Asset Turnover was 2.12, which means for every $1 of asset they generate $2.12 of sales revenue. In 2005 it was 2.59, which means they are doing worse in this area compared to last year as well.

Their Net Profit Margin was most telling because it was 0.086. This is Net Income / Sales Revenue. It is an analysis of how well a company controls expenses. Rockford gets blasted by expenses and therefore ends up with a net loss instead of net income for the year ended 2006.

Basic overview: do not invest in Rockford Fosgate, do not become a dealer for them, etc. They cannot control their expenses and cannot generate enough revenue to overcome these expenses. They also are using debt financing and therefore won't be able to pay back their loans because they will have to take out more loans to do so. They may go under soon....

I have an accounting exam tomorrow, so this was a pretty good review.

A better metric would be days in inventory , inv/cogs x 365

I don't really care about fixed assets for these types of firms. I want to see that they are moving product.

 

[jdawg 5,000+ posts]

Its probably from everyone buing all the shitty P1's from circuit city

 

[Twilight 10+ year member]

Fujitsu makes a ton of products though; car audio is hardly their bread and butter.

 

[SRim23 5,000+ posts]

Fujitsu makes a ton of products though; car audio is hardly their bread and butter.

i could be wrong but i think the same could go for those other companies as well...isnt harmon kardon more home audio?

 

[prochobo 10+ year member]

Net income = revenues - expenses. So yes, I'd say it's profit.

 

[Silverbane 10+ year member]

A better metric would be days in inventory , inv/cogs x 365
I don't really care about fixed assets for these types of firms. I want to see that they are moving product.

Turns means more to me then profit per item. I think that they need to cut spending and focus on selling the product they have paid for. Revamp looks and hold off on spending more on R&D...

Stop giving pens to your employees and cut back on other non-necessities and it would help them fare better. BTW, first class flights and fancy hotels cost more then coach and motel 6...Cut anywhere you can.

 

[BJ The Man 10+ year member]

this is a bit off subject but i have a questionn that i think could be answered here.

IMO and in what i have known, about 75% of the people without stereos or anything aftermarket say they would buy stuff, but its just a waste of money. They talk about expense and such.

the other 25% is just people whose parents are ignorant to the fact that people like quality in their music or just a little bass. They think we have systems to be annoying. They also think its just a waste of money.

I'd say the only reason car audio is losing influence is because of inflation and how much it costs.

So finally my question. Why don't car audio companies just lower their prices without losing quality?

They would not lose too much money, but yet a larger margin of people would buy the products and more of them.

I'm not educated very strongly in this area, but it just seems that this would be a smart idea.

Probably why i don't own RF.

 

[elementxero 10+ year member]

Well yeah man that would certainly SELL product, but they are trying to turn a PROFIT.

Why doesn't Sony sell 50" HDTVs for a dollar? They would certainly sell an insane amount of them. But they'd also go bankrupt.

 

[BJ The Man 10+ year member]

Well yeah man that would certainly SELL product, but they are trying to turn a PROFIT.
Why doesn't Sony sell 50" HDTVs for a dollar? They would certainly sell an insane amount of them. But they'd also go bankrupt.

I dont mean that insanely low.. I was thinking more along the lines of take 15-20% off of some products like their amps. They arent as good as they were but they sell for more because they look sick and yes, do still perform. You take 20% of the price for the amps then advertise the price drop correctly and your selling many more than you were and still turning a profit while keeping the same quality name.

 

[mdillon 10+ year member]

inflation will drive the price up again everytime gas goes up, then the cost for shipping goes up, and the stores charge more etc.

eventually the prices will rise like they always have.

look at how much the products cost 10 years ago. inflation versus price would probably be about the same percentage.

 

[sundownz Pro Seller]

I dont mean that insanely low.. I was thinking more along the lines of take 15-20% off of some products like their amps. They arent as good as they were but they sell for more because they look sick and yes, do still perform. You take 20% of the price for the amps then advertise the price drop correctly and your selling many more than you were and still turning a profit while keeping the same quality name.

Not really possible -- I don't know about other companies but there is no way I could cut 20% off my dealer cost and stay in business. I think you are over-estimating how much profit there is in car audio.

 

[BMW Sidewayz 10+ year member]

is that $100k profit really that big for a company like fosgate???? just think.... if there products were made like they were in the 90's..............hummmm that'd be AWSOME!!!!!!!!!! they just dont make'm like they use to LOL

Thats what happens when companies stop making quality products. After RF cut back on sum quality and concentrated in mass production, fanatics started noticing, the word got around and people just when with other companies that were making great products and now its a challenge to gain peoples trust, its not that easy. Im on the market for a 4 ch amp and I'm considering the t600-4 so its not that I dislike them , but just stating my 2 cents. Heck!, I still have an Old School Punch 200x2 "***** ana sitting in my closet for yrs and I'm having a hard time making a decision on selling, because its such a great amp. Some people on ebay selling the trapezoid shaped ones refer to them as "old school" which from my understanding, was the crapiest RFs made.

 

Wish them luck on getting the consumers trust again, with competitors like, JL, Sundown, e.t.c.. I still like their products, but only the "POWER" series.