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Electro Scientific Industries (Electro Scientific Industries) ROE % : 7.92% (As of Dec. 2018)


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What is Electro Scientific Industries ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Electro Scientific Industries's annualized net income for the quarter that ended in Dec. 2018 was $25.4 Mil. Electro Scientific Industries's average Total Stockholders Equity over the quarter that ended in Dec. 2018 was $320.4 Mil. Therefore, Electro Scientific Industries's annualized ROE % for the quarter that ended in Dec. 2018 was 7.92%.

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

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

Electro Scientific Industries ROE % Historical Data

The historical data trend for Electro Scientific 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.

Electro Scientific Industries ROE % Chart

Electro Scientific Industries Annual Data
Trend Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -15.74 -21.89 -7.06 -23.78 56.57

Electro Scientific Industries Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
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 78.91 131.40 44.21 21.95 7.92

Competitive Comparison of Electro Scientific Industries's ROE %

For the Semiconductors subindustry, Electro Scientific 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.


Electro Scientific Industries's ROE % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Electro Scientific Industries's ROE % distribution charts can be found below:

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



Electro Scientific Industries ROE % Calculation

Electro Scientific Industries's annualized ROE % for the fiscal year that ended in Mar. 2018 is calculated as

ROE %=Net Income (A: Mar. 2018 )/( (Total Stockholders Equity (A: Mar. 2017 )+Total Stockholders Equity (A: Mar. 2018 ))/ count )
=116.223/( (144.531+266.358)/ 2 )
=116.223/205.4445
=56.57 %

Electro Scientific Industries's annualized ROE % for the quarter that ended in Dec. 2018 is calculated as

ROE %=Net Income (Q: Dec. 2018 )/( (Total Stockholders Equity (Q: Sep. 2018 )+Total Stockholders Equity (Q: Dec. 2018 ))/ count )
=25.36/( (316.401+324.379)/ 2 )
=25.36/320.39
=7.92 %

* 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. 2018) net income data. ROE % is displayed in the 30-year financial page.


Electro Scientific Industries  (NAS:ESIO) 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. 2018 )
=Net Income/Total Stockholders Equity
=25.36/320.39
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(25.36 / 271.768)*(271.768 / 400.512)*(400.512 / 320.39)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.33 %*0.6786*1.2501
=ROA %*Equity Multiplier
=6.33 %*1.2501
=7.92 %

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. 2018 )
=Net Income/Total Stockholders Equity
=25.36/320.39
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (25.36 / 23.444) * (23.444 / 32.612) * (32.612 / 271.768) * (271.768 / 400.512) * (400.512 / 320.39)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0817 * 0.7189 * 12 % * 0.6786 * 1.2501
=7.92 %

Note: The net income data used here is four times the quarterly (Dec. 2018) net income data. The Revenue data used here is four times the quarterly (Dec. 2018) 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.


Electro Scientific Industries ROE % Related Terms

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


Electro Scientific Industries (Electro Scientific Industries) Business Description

Traded in Other Exchanges
N/A
Address
Electro Scientific Industries Inc is a manufacturer of electronic components. The company operates through two segments: Component Processing and Micromachining. The Component Processing segment includes interconnect products, semiconductor products, and component products. The interconnect, semiconductor and component products are sold to manufacturers of electronic components and are used to drill, cut, trim, ablate and test and mark features for the functionality of the component. The Micromachining segment includes products that are sold to manufacturers of end devices across various industries and are used to drill, cut or mark features on a range of materials, generally on the casing or external surface of the end device.
Executives
Raymond A Link director C/O FORMFACTOR, INC., 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Michael D Burger officer: PRESIDENT AND CEO 250 TECHNOLOGY PARK, LAKE MARY FL 32746
Allen L. Muhich officer: CHIEF FINANCIAL OFFICER 250 TECHNOLOGY PARK, LAKE MARY FL 32746
Lynne J Camp director 714 NW 914TH TERRACE, PORTLAND OR 97229
Paul R Oldham officer: CFO, Sr. VP of Finance 1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
John K Medica director C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC EXPWY, BLDG C, AUSTIN TX 78759
Edward C Grady director, officer: President & CEO
Richard J Faubert director 14242 S CANYON DR, PHOENIX AZ 85048
Jon D Tompkins director 17075 THORNMINT COURT, SAN DIEGO CA 92127
D3 Family Fund Lp director, 10 percent owner 19605 NE 8TH STREET CAMAS WA 98607
Nierenberg Investment Management Co director 19605 NE 8TH ST, CAMAS WA 98607
David Nierenberg director, 10 percent owner 19605 NE 8TH STREET, CAMAS WA 98607
Nierenberg Investment Management Offshore Inc 10 percent owner 19605 NE 8TH STREET CAMAS WA 98607
D3 Family Canadian Fund, L.p. 10 percent owner 19605 NE 8TH STREET, CAMAS WA 98607
D3 Offshore Fund Lp 10 percent owner 19605 NE 8TH ST CAMAS WA 98607

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