Golden Enterprises (Golden Enterprises) ROE % : 16.49% (As of May. 2016)

View and export this data going back to 1990. Start your Free Trial

What is Golden Enterprises ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Golden Enterprises's annualized net income for the quarter that ended in May. 2016 was $3.8 Mil. Golden Enterprises's average Total Stockholders Equity over the quarter that ended in May. 2016 was $23.3 Mil. Therefore, Golden Enterprises's annualized ROE % for the quarter that ended in May. 2016 was 16.49%.

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

GLDC's ROE % is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 6.315
* Ranked among companies with meaningful ROE % only.

Golden Enterprises ROE % Historical Data

The historical data trend for Golden Enterprises'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.

Golden Enterprises ROE % Chart

Golden Enterprises Annual Data

Trend

May07

May08

May09

May10

May11

May12

May13

May14

May15

May16

ROE %

Get a 7-Day Free Trial

9.19

4.68

3.88

7.85

14.06

Golden Enterprises Quarterly Data
	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16
ROE %	Get a 7-Day Free Trial															12.90	16.19	10.69	12.88	16.49

Competitive Comparison of Golden Enterprises's ROE %

For the Packaged Foods subindustry, Golden Enterprises'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.

Golden Enterprises's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Golden Enterprises's ROE % distribution charts can be found below:

* The bar in red indicates where Golden Enterprises's ROE % falls into.

Golden Enterprises ROE % Calculation

Golden Enterprises's annualized ROE % for the fiscal year that ended in May. 2016 is calculated as

ROE %	=	Net Income (A: May. 2016 )	/	( (Total Stockholders Equity (A: May. 2015 )	+	Total Stockholders Equity (A: May. 2016 ))	/ count )
	=	3.185	/	( (21.685	+	23.626)	/ 2 )
	=	3.185	/	22.6555
	=	14.06 %

Golden Enterprises's annualized ROE % for the quarter that ended in May. 2016 is calculated as

ROE %	=	Net Income (Q: May. 2016 )	/	( (Total Stockholders Equity (Q: Feb. 2016 )	+	Total Stockholders Equity (Q: May. 2016 ))	/ count )
	=	3.844	/	( (23.009	+	23.626)	/ 2 )
	=	3.844	/	23.3175
	=	16.49 %

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

Golden Enterprises (NAS:GLDC) 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: May. 2016 )
=	Net Income	/	Total Stockholders Equity
=	3.844	/	23.3175
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(3.844 / 139.816)	*	(139.816 / 43.726)	*	(43.726 / 23.3175)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	2.75 %	*	3.1975	*	1.8752
=	ROA %	*	Equity Multiplier
=	8.79 %	*	1.8752
=	16.49 %

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: May. 2016 )
=	Net Income	/	Total Stockholders Equity
=	3.844	/	23.3175
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(3.844 / 4.24)	*	(4.24 / 4.36)	*	(4.36 / 139.816)	*	(139.816 / 43.726)	*	(43.726 / 23.3175)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.9066	*	0.9725	*	3.12 %	*	3.1975	*	1.8752
=	16.49 %

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

Golden Enterprises ROE % Related Terms

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

Golden Enterprises (Golden Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Golden Enterprises Inc (NAS:GLDC) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.goldenflake.com

Golden Enterprises Inc was originally organized under the laws of the State of Alabama as Magic City Food Products, Inc. on June 11, 1946. On March 11, 1958, it adopted the name Golden Flake, Inc. The Company was reorganized December 31, 1967 as a Delaware corporation without changing any of its assets, liabilities, or business. The Company produces, markets, and distributes snack products in the Southeastern United States since 1923. The Company manufactures and distributes a salted snack items, such as potato chips, tortilla chips, corn chips, fried pork skins, baked and fried cheese curls, onion rings, and puff corn. It also sells canned dips, pretzels, peanut butter crackers, cheese crackers, dried meat products, and nuts packaged by other manufacturers using the Golden Flake label. The Company purchases raw materials used in manufacturing and processing its snack food products from various sources. The Company also purchases flexible bags or other suitable wrapping material for the storage, shipment, and presentation of the finished product to its customers. It sells its products through its own sales organization and independent distributors to commercial establishments, which sell food products in Alabama, Tennessee, Georgia, Mississippi, Louisiana, Kentucky, and South Carolina as well as parts of Florida, North Carolina, Arkansas, Missouri, Oklahoma, Virginia, Indiana, and Texas. The products are distributed to its customers by either company transportation or commercial carrier out of the Birmingham and Ocala plants. The Company owns central branch warehouses in Birmingham, Montgomery, Midfield, Demopolis, Fort Payne, Muscle Shoals, Huntsville, Phoenix City, Tuscaloosa, Mobile, Dothan, and Oxford, Alabama; Gulfport and Jackson, Mississippi; Knoxville and Memphis, Tennessee; Decatur and Macon, Georgia; Panama City, Tallahassee, and Pensacola, Florida; and New Orleans, Louisiana. It competes with companies, which are engaged in the production and distribution of food products similar to those produced and sold by the Golden Enterprises, Inc. The name "Golden Flake" and its regularly used symbol are federally registered trademarks of the Company. The Company also owns other trademarks such as "The South's Original Potato Chip", a Golden Flake design from 1922, the name "Sweetheat" and certain other trademarks not used on a regular basis.

Golden Enterprises (Golden Enterprises) Headlines

From GuruFocus

Golden Enterprises Inc. Reports Operating Results (10-Q)

By gurufocus 10qk • 10-08-2009

Golden Enterprises Inc. Reports Operating Results (10-Q)

By gurufocus 10qk • 01-15-2010

Golden Enterprises Inc. Reports Operating Results for Fiscal Quarter Ended on 2008-11-28

By gurufocus • 01-16-2009

Golden Enterprises Inc. Reports Operating Results (10-Q)

By gurufocus • 04-16-2009

Golden Enterprises Inc. Reports Operating Results (10-K)

By gurufocus • 08-26-2009