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Comdisco Holding Co (Comdisco Holding Co) ROE % : 3.06% (As of Sep. 2014)


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What is Comdisco Holding Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Comdisco Holding Co's annualized net income for the quarter that ended in Sep. 2014 was $0.77 Mil. Comdisco Holding Co's average Total Stockholders Equity over the quarter that ended in Sep. 2014 was $25.12 Mil. Therefore, Comdisco Holding Co's annualized ROE % for the quarter that ended in Sep. 2014 was 3.06%.

The historical rank and industry rank for Comdisco Holding Co's ROE % or its related term are showing as below:

CDCO's ROE % is not ranked *
in the Conglomerates industry.
Industry Median: 5.92
* Ranked among companies with meaningful ROE % only.

Comdisco Holding Co ROE % Historical Data

The historical data trend for Comdisco Holding Co's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Comdisco Holding Co ROE % Chart

Comdisco Holding Co Annual Data
Trend Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -7.84 -4.77 -1.74 -4.71 3.45

Comdisco Holding Co Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.32 -19.85 20.33 10.25 3.06

Competitive Comparison of Comdisco Holding Co's ROE %

For the Conglomerates subindustry, Comdisco Holding Co's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Comdisco Holding Co's ROE % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Comdisco Holding Co's ROE % distribution charts can be found below:

* The bar in red indicates where Comdisco Holding Co's ROE % falls into.



Comdisco Holding Co ROE % Calculation

Comdisco Holding Co's annualized ROE % for the fiscal year that ended in Sep. 2014 is calculated as

ROE %=Net Income (A: Sep. 2014 )/( (Total Stockholders Equity (A: Sep. 2013 )+Total Stockholders Equity (A: Sep. 2014 ))/ count )
=0.855/( (24.362+25.211)/ 2 )
=0.855/24.7865
=3.45 %

Comdisco Holding Co's annualized ROE % for the quarter that ended in Sep. 2014 is calculated as

ROE %=Net Income (Q: Sep. 2014 )/( (Total Stockholders Equity (Q: Jun. 2014 )+Total Stockholders Equity (Q: Sep. 2014 ))/ count )
=0.768/( (25.024+25.211)/ 2 )
=0.768/25.1175
=3.06 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2014) net income data. ROE % is displayed in the 30-year financial page.


Comdisco Holding Co  (OTCPK:CDCO) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2014 )
=Net Income/Total Stockholders Equity
=0.768/25.1175
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.768 / 0.044)*(0.044 / 37.697)*(37.697 / 25.1175)
=Net Margin %*Asset Turnover*Equity Multiplier
=1745.45 %*0.0012*1.5008
=ROA %*Equity Multiplier
=2.09 %*1.5008
=3.06 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2014 )
=Net Income/Total Stockholders Equity
=0.768/25.1175
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.768 / 0.776) * (0.776 / -2.176) * (-2.176 / 0.044) * (0.044 / 37.697) * (37.697 / 25.1175)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9897 * -0.3566 * -4945.45 % * 0.0012 * 1.5008
=3.06 %

Note: The net income data used here is four times the quarterly (Sep. 2014) net income data. The Revenue data used here is four times the quarterly (Sep. 2014) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Comdisco Holding Co ROE % Related Terms

Thank you for viewing the detailed overview of Comdisco Holding Co's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Comdisco Holding Co (Comdisco Holding Co) Business Description

Traded in Other Exchanges
N/A
Address
Comdisco Holding Company, Inc. was formed on August 8, 2002 for the purpose of selling, collecting or otherwise reducing to money in an orderly manner the remaining assets of the Company and all of its direct and indirect subsidiaries, including Comdisco, Inc. Comdisco emerged from chapter 11 bankruptcy proceedings on August 12, 2002. Prior to the bankruptcy, Comdisco, Inc. provided technology services worldwide to help its customers maximize technology functionality, predictability, and availability, while freeing them from the complexity of managing their technology. Comdisco, Inc. offered leasing to key vertical industries, including semiconductor manufacturing and electronic assembly, healthcare, telecommunications, pharmaceutical, biotechnology and manufacturing. Through its Comdisco Ventures group, Comdisco, Inc. provided equipment leasing and other financing and services to venture capital-backed companies. The Company is engaged in selling, collecting or reducing its remaining assets to money as per its reorganization plan.
Executives
Michael J Leffell 10 percent owner C/O DAVIDSON KEMPNER PARTNERS, 885 THIRD AVE STE 3300, NEW YORK NY 10022
Kempner Partners Davidson 10 percent owner C/O MHD MANAGEMENT CO., 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Kempner Thomas L Jr 10 percent owner DAVIDSON KEMPNER CAPITAL MANAGEMENT LP, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner International, Ltd. 10 percent owner C/O OFFSHORE INCORPORATION LTD, OFFSHORE, INCORPORATION CENTRE, POBOX 957, RD TOWN, TORTOLA D8 00000
Davidson Kempner Institutional Partners, L.p. 10 percent owner C/O DAVIDSON KEMPNER ADVISERS INC., 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Anthony Alexander Yoseloff 10 percent owner DAVIDSON KEMPNER CAPITAL MANAGEMENT LP, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
M.h. Davidson & Co. 10 percent owner 885 THIRD AVENUE, SUITE 3300, NEW YORK NY 10022
Stephen M Dowicz 10 percent owner C/O DAVIDSON KEMPNER PARTNERS, 885 THIRD AVE STE 3300, NEW YORK NY 10022
Timothy I Levart 10 percent owner C/O DAVIDSON KEMPNER PARTNERS, 885 THIRD AVE STE 3300, NEW YORK NY 10022
Scott E Davidson 10 percent owner C/O DAVIDSON KEMPNER PARTNERS, 885 THIRD AVE STE 3300, NEW YORK NY 10022
Brivio Robert J Jr 10 percent owner C/O DAVIDSON KEMPNER PARTNERS, 885 THIRD AVE STE 3300, NEW YORK NY 10022
Mhd Management Co 10 percent owner C/O DAVIDSON KEMPNER PARTNERS, 885 THIRD AVE STE 3300, NEW YORK NY 10022
Davidson Kempner Advisers Inc 10 percent owner C/O DAVIDSON KEMPNER PARTNERS, 885 THIRD AVE STE 3300, NEW YORK NY 10022
Davidson Kempner International Advisors Llc 10 percent owner C/O DAVIDSON KEMPNER PARTNERS, 885 THIRD AVE STE 3300, NEW YORK NY 10022
Eric Philip Epstein 10 percent owner C/O M.H. DAVIDSON & CO., L.L.C., 885 THIRD AVENUE, NEW YORK NY 10022

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