Deswell Industries (Deswell Industries) ROE %

: 7.85% (As of Sep. 2023)

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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Deswell Industries's annualized net income for the quarter that ended in Sep. 2023 was $7.11 Mil. Deswell Industries's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $90.63 Mil. Therefore, Deswell Industries's annualized ROE % for the quarter that ended in Sep. 2023 was 7.85%.

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

DSWL' s ROE % Range Over the Past 10 Years
Min: -7.84 Med: 2.04 Max: 9.92
Current: 6.87

During the past 13 years, Deswell Industries's highest ROE % was 9.92%. The lowest was -7.84%. And the median was 2.04%.

DSWL's ROE % is ranked better than
58.83% of 2412 companies
in the Hardware industry
Industry Median: 4.76 vs DSWL: 6.87

Deswell Industries ROE % Historical Data

The historical data trend for Deswell Industries'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.

Deswell Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROE %

5.17

-1.61

9.92

9.33

2.28

Deswell Industries Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROE %																9.87	8.78	-1.25	5.88	7.85

Competitive Comparison

For the Electronic Components subindustry, Deswell Industries'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.

Deswell Industries ROE % Distribution

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

* The bar in red indicates where Deswell Industries's ROE % falls into.

Deswell Industries ROE % Calculation

Deswell Industries's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %	=	Net Income (A: Mar. 2023 )	/	( (Total Stockholders Equity (A: Mar. 2022 )	+	Total Stockholders Equity (A: Mar. 2023 ))	/ count )
	=	2.059	/	( (90.778	+	89.649)	/ 2 )
	=	2.059	/	90.2135
	=	2.28 %

Deswell Industries's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %	=	Net Income (Q: Sep. 2023 )	/	( (Total Stockholders Equity (Q: Mar. 2023 )	+	Total Stockholders Equity (Q: Sep. 2023 ))	/ count )
	=	7.114	/	( (89.649	+	91.612)	/ 2 )
	=	7.114	/	90.6305
	=	7.85 %

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 two times the semi-annual (Sep. 2023) net income data. ROE % is displayed in the 30-year financial page.

Deswell Industries (NAS:DSWL) 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. 2023 )
=	Net Income	/	Total Stockholders Equity
=	7.114	/	90.6305
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(7.114 / 75.46)	*	(75.46 / 110.9975)	*	(110.9975 / 90.6305)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	9.43 %	*	0.6798	*	1.2247
=	ROA %	*	Equity Multiplier
=	6.41 %	*	1.2247
=	7.85 %

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. 2023 )
=	Net Income	/	Total Stockholders Equity
=	7.114	/	90.6305
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(7.114 / 7.452)	*	(7.452 / 4.204)	*	(4.204 / 75.46)	*	(75.46 / 110.9975)	*	(110.9975 / 90.6305)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.9546	*	1.7726	*	5.57 %	*	0.6798	*	1.2247
=	7.85 %

Note: The net income data used here is two times the semi-annual (Sep. 2023) net income data. The Revenue data used here is two times the semi-annual (Sep. 2023) 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.

Deswell Industries ROE % Related Terms

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Deswell Industries (Deswell Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Deswell Industries Inc (NAS:DSWL) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

DW2:Germany

Address

10B, Edificio Associacao Industrial De Macau, No. 32-36 Rua do Comandante Mata e Oliveira, Macao, MAC

Website

https://www.deswell.com

Deswell Industries Inc is engaged in the manufacturing and selling of injection-molded plastic parts and components. In addition, it also offers manufacturing services for electronic products and subassemblies and manufactures metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company conducts all of its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. It operates through the Plastic Injection Molding and Electronic Products Assembling segments. The firm offers products such as automobile components, medical testing equipment, parts for audio equipment, av receivers, active subwoofers, digital system key sets, communication products and others.