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Cypress Semiconductor (Cypress Semiconductor) ROE % : 3.96% (As of Dec. 2019)


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What is Cypress Semiconductor ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cypress Semiconductor's annualized net income for the quarter that ended in Dec. 2019 was $83 Mil. Cypress Semiconductor's average Total Stockholders Equity over the quarter that ended in Dec. 2019 was $2,100 Mil. Therefore, Cypress Semiconductor's annualized ROE % for the quarter that ended in Dec. 2019 was 3.96%.

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

CY's ROE % is not ranked *
in the Semiconductors industry.
Industry Median: 4.42
* Ranked among companies with meaningful ROE % only.

Cypress Semiconductor ROE % Historical Data

The historical data trend for Cypress Semiconductor'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.

Cypress Semiconductor ROE % Chart

Cypress Semiconductor Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -24.95 -29.62 -4.36 18.03 1.92

Cypress Semiconductor Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
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 53.41 3.72 -2.41 2.41 3.96

Competitive Comparison of Cypress Semiconductor's ROE %

For the Semiconductors subindustry, Cypress Semiconductor'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.


Cypress Semiconductor's ROE % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Cypress Semiconductor's ROE % distribution charts can be found below:

* The bar in red indicates where Cypress Semiconductor's ROE % falls into.



Cypress Semiconductor ROE % Calculation

Cypress Semiconductor's annualized ROE % for the fiscal year that ended in Dec. 2019 is calculated as

ROE %=Net Income (A: Dec. 2019 )/( (Total Stockholders Equity (A: Dec. 2018 )+Total Stockholders Equity (A: Dec. 2019 ))/ count )
=40.428/( (2115.734+2100.255)/ 2 )
=40.428/2107.9945
=1.92 %

Cypress Semiconductor's annualized ROE % for the quarter that ended in Dec. 2019 is calculated as

ROE %=Net Income (Q: Dec. 2019 )/( (Total Stockholders Equity (Q: Sep. 2019 )+Total Stockholders Equity (Q: Dec. 2019 ))/ count )
=83.04/( (2098.887+2100.255)/ 2 )
=83.04/2099.571
=3.96 %

* 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 (Dec. 2019) net income data. ROE % is displayed in the 30-year financial page.


Cypress Semiconductor  (NAS:CY) 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. 2019 )
=Net Income/Total Stockholders Equity
=83.04/2099.571
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(83.04 / 2238.272)*(2238.272 / 3608.0525)*(3608.0525 / 2099.571)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.71 %*0.6204*1.7185
=ROA %*Equity Multiplier
=2.3 %*1.7185
=3.96 %

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. 2019 )
=Net Income/Total Stockholders Equity
=83.04/2099.571
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (83.04 / 97.308) * (97.308 / 130.944) * (130.944 / 2238.272) * (2238.272 / 3608.0525) * (3608.0525 / 2099.571)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8534 * 0.7431 * 5.85 % * 0.6204 * 1.7185
=3.96 %

Note: The net income data used here is four times the quarterly (Dec. 2019) net income data. The Revenue data used here is four times the quarterly (Dec. 2019) 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.


Cypress Semiconductor ROE % Related Terms

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


Cypress Semiconductor (Cypress Semiconductor) Business Description

Traded in Other Exchanges
N/A
Address
198 Champion Court, San Jose, CA, USA, 95134
Cypress Semiconductor is a provider of advanced embedded systems used in a variety of markets, including industrial, consumer, data communications, and automotive.
Executives
Camillo Martino director 60 SOUTH MARKET STREET, STE 750, SAN JOSE CA 95113
Catherine P Lego director C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
Michael S Wishart director SPANSION INC., 915 DEGUIGNE DRIVE, SUNNYVALE CA 94085-3836
W Steve Albrecht director 3901 NO FIRST ST, SAN JOSE CA 95134
Jeannine P Sargent director C/O VEECO INSTRUMENTS INC., 100 SUNNYSIDE BOULEVARD SUITE B, WOODBURY NY 11797
Pamela L. Tondreau officer: EVP, Chief Legal Officer & HR 198 CHAMPION COURT, SAN JOSE CA 95134
Jeffrey J Owens director 5725 DELPHI DRIVE, TROY MI 48098
J Daniel Mccranie director C/O ENOVIX CORPORATION, 3501 W. WARREN AVENUE, FREMONT CA 94538
Eric Benhamou director 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
H Raymond Bingham director, officer: Executive Chairman 2655 SEELY AVE, SAN JOSE CA 95134
Thurman J Rodgers director 535 EASTVIEW WAY, WOODSIDE CA 94062
John H Kispert director
Mao Robert Yu Lang director 2218 JACKSON AVENUE, APT 718, LONG ISLAND NY 11101
J Donald Sherman director C/O CITRIX SYSTEMS, INC., 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Badrinarayanan Kothandaraman officer: Executive Vice President ENPHASE ENERGY INC., 1420 NORTH MCDOWELL BLVD, PETALUMA CA 94954