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Jinpan International (Jinpan International) ROE % : 5.38% (As of Sep. 2015)


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What is Jinpan International ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Jinpan International's annualized net income for the quarter that ended in Sep. 2015 was $12.3 Mil. Jinpan International's average Total Stockholders Equity over the quarter that ended in Sep. 2015 was $228.9 Mil. Therefore, Jinpan International's annualized ROE % for the quarter that ended in Sep. 2015 was 5.38%.

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

JST's ROE % is not ranked *
in the Hardware industry.
Industry Median: 4.53
* Ranked among companies with meaningful ROE % only.

Jinpan International ROE % Historical Data

The historical data trend for Jinpan International'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.

Jinpan International ROE % Chart

Jinpan International Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.44 14.70 7.59 8.25 6.97

Jinpan International Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 7.75 7.81 2.62 9.77 5.38

Competitive Comparison of Jinpan International's ROE %

For the Electronic Components subindustry, Jinpan International'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.


Jinpan International's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Jinpan International's ROE % distribution charts can be found below:

* The bar in red indicates where Jinpan International's ROE % falls into.



Jinpan International ROE % Calculation

Jinpan International's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=15.312/( (214.959+224.14)/ 2 )
=15.312/219.5495
=6.97 %

Jinpan International's annualized ROE % for the quarter that ended in Sep. 2015 is calculated as

ROE %=Net Income (Q: Sep. 2015 )/( (Total Stockholders Equity (Q: Jun. 2015 )+Total Stockholders Equity (Q: Sep. 2015 ))/ count )
=12.32/( (230.204+227.524)/ 2 )
=12.32/228.864
=5.38 %

* 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. 2015) net income data. ROE % is displayed in the 30-year financial page.


Jinpan International  (NAS:JST) 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. 2015 )
=Net Income/Total Stockholders Equity
=12.32/228.864
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(12.32 / 290.604)*(290.604 / 402.863)*(402.863 / 228.864)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.24 %*0.7213*1.7603
=ROA %*Equity Multiplier
=3.06 %*1.7603
=5.38 %

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. 2015 )
=Net Income/Total Stockholders Equity
=12.32/228.864
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (12.32 / 14.348) * (14.348 / 14.964) * (14.964 / 290.604) * (290.604 / 402.863) * (402.863 / 228.864)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8587 * 0.9588 * 5.15 % * 0.7213 * 1.7603
=5.38 %

Note: The net income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) 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.


Jinpan International ROE % Related Terms

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


Jinpan International (Jinpan International) Business Description

Traded in Other Exchanges
N/A
Address
Jinpan International Ltd was incorporated in the British Virgin Islands on April 3, 1997 under the International Business Companies Act of the British Virgin Islands. The Company design, manufacture and sells electrical power control and distribution equipment that are used in commercial, industrial, and infrastructural applications. Its product lines include cast resin transformers, VPI transformers, VPI line reactors, switchgears and unit substations. Its manufactures low and medium voltage switchgear products under license from Schneider. It also manufactures switchgears, Vacuum Pressure Impregnated (VPI) reactors and transformers, and unit substations. The Company offers switchgear products for general power distribution and for specialized infrastructural and industrial applications. The two main categories of dry type transformers that currently dominate the market are cast resin and open ventilated dry type transformers. Cast resin dry type transformers are predominant in Europe, Japan, and newly developed markets in Asia, including China. Open ventilated dry type transformers are widely used in North America. The Company manufactures medium and low voltage switchgear products for the China market. They use sheet metal to manufacture switchgear enclosures, coat the enclosure, and assemble switchgears using components from brand name suppliers such as Siemens and Schneider. The Company owns the rights to the trademark 'JST,' which is registered with the Trademark Bureau of the State Administration of Industry and Commerce in China.

Jinpan International (Jinpan International) Headlines

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