eFuture Holding (eFuture Holding) ROE % : -19.97% (As of Sep. 2016)

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What is eFuture Holding ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. eFuture Holding's annualized net income for the quarter that ended in Sep. 2016 was $-4.53 Mil. eFuture Holding's average Total Stockholders Equity over the quarter that ended in Sep. 2016 was $22.69 Mil. Therefore, eFuture Holding's annualized ROE % for the quarter that ended in Sep. 2016 was -19.97%.

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

EFUT's ROE % is not ranked ^*
in the Software industry.
Industry Median: 3.225
* Ranked among companies with meaningful ROE % only.

eFuture Holding ROE % Historical Data

The historical data trend for eFuture Holding'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.

eFuture Holding ROE % Chart

eFuture Holding Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROE %

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-14.53

-3.62

-6.16

5.86

4.98

eFuture Holding Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
ROE %	Get a 7-Day Free Trial															-11.10	59.62	-28.71	-14.50	-19.97

Competitive Comparison of eFuture Holding's ROE %

For the Software - Application subindustry, eFuture Holding'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.

eFuture Holding's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, eFuture Holding's ROE % distribution charts can be found below:

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

eFuture Holding ROE % Calculation

eFuture Holding's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %	=	Net Income (A: Dec. 2015 )	/	( (Total Stockholders Equity (A: Dec. 2014 )	+	Total Stockholders Equity (A: Dec. 2015 ))	/ count )
	=	1.169	/	( (21.076	+	25.847)	/ 2 )
	=	1.169	/	23.4615
	=	4.98 %

eFuture Holding's annualized ROE % for the quarter that ended in Sep. 2016 is calculated as

ROE %	=	Net Income (Q: Sep. 2016 )	/	( (Total Stockholders Equity (Q: Jun. 2016 )	+	Total Stockholders Equity (Q: Sep. 2016 ))	/ count )
	=	-4.532	/	( (23.293	+	22.092)	/ 2 )
	=	-4.532	/	22.6925
	=	-19.97 %

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. 2016) net income data. ROE % is displayed in the 30-year financial page.

eFuture Holding (NAS:EFUT) 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. 2016 )
=	Net Income	/	Total Stockholders Equity
=	-4.532	/	22.6925
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-4.532 / 19.792)	*	(19.792 / 38.2915)	*	(38.2915 / 22.6925)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-22.9 %	*	0.5169	*	1.6874
=	ROA %	*	Equity Multiplier
=	-11.84 %	*	1.6874
=	-19.97 %

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. 2016 )
=	Net Income	/	Total Stockholders Equity
=	-4.532	/	22.6925
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-4.532 / -3.68)	*	(-3.68 / -3.144)	*	(-3.144 / 19.792)	*	(19.792 / 38.2915)	*	(38.2915 / 22.6925)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	1.2315	*	1.1705	*	-15.89 %	*	0.5169	*	1.6874
=	-19.97 %

Note: The net income data used here is four times the quarterly (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) 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.

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.

eFuture Holding ROE % Related Terms

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eFuture Holding (eFuture Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » eFuture Holding Inc (NAS:EFUT) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.e-future.com.cn

E-Future Information Technology, Inc., established under the Cayman Islands Companies Law on November 2, 2000. The Company changed its name from 'e-Future Information Technology Inc.' to 'eFuture Information Technology Inc.' in December 2008. It provides software and services to China's retail and consumer goods industries. It offers one-stop, end-to-end integrated portfolio of software and services from factory to consumer on seven verticals: Fast Moving Consumer Goods (FMCG), Department Store, Shopping Mall, Grocery, Logistics, Specialty Store and Online Retailers. Its clients include manufacturers, distributors, resellers, logistics companies and retailers. The Company's client base encompasses corporations such as Procter & Gamble, Pepsi, L'Oreal, Kimberly-Clark, Gucci and B&Q as well as Chinese companies. The Company has three business lines: software, professional services and cloud service. Its software solutions include the management of merchandizing, distribution, warehousing, supply chains, customer relationships, logistics and points of sale. It consists of three deployable groups of products: Foundation Solutions, Collaborative Solutions and Intelligent Solutions. Foundation Solutions - are used to meet client needs for services such as retail management, point of sale ('POS'), distribution management, logistics management, warehouse management, vendor payment and control and loyalty card management. Collaborative Solutions - are used to meet client needs for services such as visual SCM and visual process management systems. Depending on the type of customer and their needs, clients use a variety of Collaborative Solutions. Intelligent Solutions - are used to meet client needs for services such as business intelligence, brand analysis, supplier relationship management and customer relationship management systems. Professional Services includes recurring maintenance and support services on existing software installations, delivery services, consulting services and outsourcing services. Maintenance and Support Service - is provided following the installation of its software solutions, as clients will typically require ongoing maintenance support and software upgrades to ensure the efficient operation of their system. Consulting Service - is provided by its consulting services group which consists of business consultants, systems analysts and technical personnel. Outsourcing Service - is flexible by design to meet its clients' changing requirements. Cloud Service consists of cloud services based on cloud computing architecture, such as Salesforce Automation. Its regional service centers in Beijing, Shanghai, Guangzhou, Wuhan, Qingdao, Xi'an, Fuzhou, Hangzhou, Nanjing, Chongqing and Shenzhen.