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CoSine Communications (CoSine Communications) ROE % : -2.63% (As of Dec. 2009)


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What is CoSine Communications ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. CoSine Communications's annualized net income for the quarter that ended in Dec. 2009 was $-0.60 Mil. CoSine Communications's average Total Stockholders Equity over the quarter that ended in Dec. 2009 was $22.69 Mil. Therefore, CoSine Communications's annualized ROE % for the quarter that ended in Dec. 2009 was -2.63%.

The historical rank and industry rank for CoSine Communications's ROE % or its related term are showing as below:

COSN's ROE % is not ranked *
in the Business Services industry.
Industry Median: 8.5
* Ranked among companies with meaningful ROE % only.

CoSine Communications ROE % Historical Data

The historical data trend for CoSine Communications'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.

CoSine Communications ROE % Chart

CoSine Communications Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.30 1.99 1.83 -0.07 -2.63

CoSine Communications Semi-Annual Data
Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.30 1.99 1.83 -0.07 -2.63

Competitive Comparison of CoSine Communications's ROE %

For the Specialty Business Services subindustry, CoSine Communications'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.


CoSine Communications's ROE % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, CoSine Communications's ROE % distribution charts can be found below:

* The bar in red indicates where CoSine Communications's ROE % falls into.



CoSine Communications ROE % Calculation

CoSine Communications's annualized ROE % for the fiscal year that ended in Dec. 2009 is calculated as

ROE %=Net Income (A: Dec. 2009 )/( (Total Stockholders Equity (A: Dec. 2008 )+Total Stockholders Equity (A: Dec. 2009 ))/ count )
=-0.597/( (23.022+22.365)/ 2 )
=-0.597/22.6935
=-2.63 %

CoSine Communications's annualized ROE % for the quarter that ended in Dec. 2009 is calculated as

ROE %=Net Income (Q: Dec. 2009 )/( (Total Stockholders Equity (Q: Dec. 2008 )+Total Stockholders Equity (Q: Dec. 2009 ))/ count )
=-0.597/( (23.022+22.365)/ 2 )
=-0.597/22.6935
=-2.63 %

* 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 one times the annual (Dec. 2009) net income data. ROE % is displayed in the 30-year financial page.


CoSine Communications  (OTCPK:COSN) 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: Dec. 2009 )
=Net Income/Total Stockholders Equity
=-0.597/22.6935
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-0.597 / 0)*(0 / 22.9395)*(22.9395 / 22.6935)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*1.0108
=ROA %*Equity Multiplier
=N/A %*1.0108
=-2.63 %

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: Dec. 2009 )
=Net Income/Total Stockholders Equity
=-0.597/22.6935
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-0.597 / -0.597) * (-0.597 / -0.738) * (-0.738 / 0) * (0 / 22.9395) * (22.9395 / 22.6935)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.8089 * N/A % * 0 * 1.0108
=-2.63 %

Note: The net income data used here is one times the annual (Dec. 2009) net income data. The Revenue data used here is one times the annual (Dec. 2009) 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.


CoSine Communications ROE % Related Terms

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


CoSine Communications (CoSine Communications) Business Description

Traded in Other Exchanges
N/A
Address
Cosine Communications develops and markets switches and software used telecom service providers to manage their data communication networks. Carriers use CoSine's switches to incorporate virtual private networks, firewalls, virtual routing, secure broadband connections, and similar services into their service offerings. CoSine's software helps to manage the functions of the equipment.
Executives
Jack L Howard director 182 FARMERS LANE, STE 101, SANTA ROSA CA 95405
Charles J Abbe director 2445 WESTSIDE ROAD HEALDSBURG CA 95448
Steel Partners Holdings L.p. 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Warren G Lichtenstein 10 percent owner C/O STEEL PARTNERS II L P, 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Llc 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Ii Lp 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Llc 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Handy & Harman Ltd. 10 percent owner 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Whx Cs Corp. 10 percent owner 555 THEODORE FREMD AVENUE, NEW YORK NY 10580
Emh Howard Llc other: See Explanation of Responses 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Ii Master Fund L.p. 10 percent owner C/O MORGAN STANLEY FND SVCS LTD (CAYMAN), CRICKET SQ 2ND FL HUTCHINS DR PO BX 2681, GRAND CAYMAN E9 KY1-1111
George Weaver Haywood other: 10% Owner prior to 10/26/05 CARE OF CRONIN AND VRIS, LLP, 380 MADISON AVENUE, NEW YORK NY 10017
R David Spreng director 3800 FIRST BANK PL, P O BOX 357, MINNEAPOLIS MN 55402

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