GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Layne Christensen Co (NAS:LAYN) » Definitions » ROE %

Layne Christensen Co (Layne Christensen Co) ROE % : 18.52% (As of Apr. 2018)


View and export this data going back to 1992. Start your Free Trial

What is Layne Christensen Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Layne Christensen Co's annualized net income for the quarter that ended in Apr. 2018 was $10.8 Mil. Layne Christensen Co's average Total Stockholders Equity over the quarter that ended in Apr. 2018 was $58.4 Mil. Therefore, Layne Christensen Co's annualized ROE % for the quarter that ended in Apr. 2018 was 18.52%.

The historical rank and industry rank for Layne Christensen Co's ROE % or its related term are showing as below:

LAYN's ROE % is not ranked *
in the Construction industry.
Industry Median: 6.71
* Ranked among companies with meaningful ROE % only.

Layne Christensen Co ROE % Historical Data

The historical data trend for Layne Christensen Co'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.

Layne Christensen Co ROE % Chart

Layne Christensen Co Annual Data
Trend Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -36.64 -46.81 -28.90 -49.54 -39.09

Layne Christensen Co Quarterly Data
Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18
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 -132.30 -33.96 -15.14 18.48 18.52

Competitive Comparison of Layne Christensen Co's ROE %

For the Engineering & Construction subindustry, Layne Christensen Co'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.


Layne Christensen Co's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Layne Christensen Co's ROE % distribution charts can be found below:

* The bar in red indicates where Layne Christensen Co's ROE % falls into.



Layne Christensen Co ROE % Calculation

Layne Christensen Co's annualized ROE % for the fiscal year that ended in Jan. 2018 is calculated as

ROE %=Net Income (A: Jan. 2018 )/( (Total Stockholders Equity (A: Jan. 2017 )+Total Stockholders Equity (A: Jan. 2018 ))/ count )
=-27.311/( (82.22+57.505)/ 2 )
=-27.311/69.8625
=-39.09 %

Layne Christensen Co's annualized ROE % for the quarter that ended in Apr. 2018 is calculated as

ROE %=Net Income (Q: Apr. 2018 )/( (Total Stockholders Equity (Q: Jan. 2018 )+Total Stockholders Equity (Q: Apr. 2018 ))/ count )
=10.82/( (57.505+59.368)/ 2 )
=10.82/58.4365
=18.52 %

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


Layne Christensen Co  (NAS:LAYN) 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: Apr. 2018 )
=Net Income/Total Stockholders Equity
=10.82/58.4365
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(10.82 / 458.204)*(458.204 / 368.7425)*(368.7425 / 58.4365)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.36 %*1.2426*6.3101
=ROA %*Equity Multiplier
=2.93 %*6.3101
=18.52 %

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: Apr. 2018 )
=Net Income/Total Stockholders Equity
=10.82/58.4365
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (10.82 / 15.4) * (15.4 / 18.568) * (18.568 / 458.204) * (458.204 / 368.7425) * (368.7425 / 58.4365)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7026 * 0.8294 * 4.05 % * 1.2426 * 6.3101
=18.52 %

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


Layne Christensen Co ROE % Related Terms

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


Layne Christensen Co (Layne Christensen Co) Business Description

Traded in Other Exchanges
N/A
Address
Layne Christensen Co started more than 100 years ago as a water-well drilling company, and over the years, it has expanded to include water treatment and infrastructure construction services, and mineral exploration drilling services. In 2002, the company entered the energy industry and now develops and produces gas from tight shales and coal seams.
Executives
Nesser John T Iii director 777 N ELDRIDGE PARKWAY, HOUSTON TX 77079
Alan Krusi director AECOM, 555 SOUTH FLOWER ST. 37TH FLOOR, LOS ANGELES CA 90071
J Michael Anderson officer: Senior Vice President and CFO
Brown David A B director
Michael J Caliel director 1800 WEST LOOP SOUTH, SUITE 500, HOUSTON TX 77027
Nelson Obus director
Wynnefield Small Cap Value Offshore Fund Ltd other: Affiliate 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Capital Inc other: Affiliate 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Partners Small Cap Value Lp other: Affiliate 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Wynnefield Capital Management Llc other: Affiliate 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Partners Small Cap Value Lp I other: Affiliate 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Joshua Landes other: Affiliate
Andrew B Schmitt director 1900 SHAWNEE MISSION PKWY, MISSION WOODS KS 66205
Donald K Miller director
Wynnefield Capital, Inc. Profit Sharing Plan director, 10 percent owner 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123

Layne Christensen Co (Layne Christensen Co) Headlines