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Tesco (TESO) ROE % : -18.58% (As of Sep. 2017)


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What is Tesco ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tesco's annualized net income for the quarter that ended in Sep. 2017 was $-52.1 Mil. Tesco's average Total Stockholders Equity over the quarter that ended in Sep. 2017 was $280.5 Mil. Therefore, Tesco's annualized ROE % for the quarter that ended in Sep. 2017 was -18.58%.

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

TESO's ROE % is not ranked *
in the Oil & Gas industry.
Industry Median: 7.11
* Ranked among companies with meaningful ROE % only.

Tesco ROE % Historical Data

The historical data trend for Tesco'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.

Tesco ROE % Chart

Tesco Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.37 7.18 4.18 -30.12 -34.45

Tesco Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 -26.12 -25.28 -18.06 -16.60 -18.58

Competitive Comparison of Tesco's ROE %

For the Oil & Gas Equipment & Services subindustry, Tesco'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.


Tesco's ROE % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Tesco's ROE % distribution charts can be found below:

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



Tesco ROE % Calculation

Tesco's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=-117.928/( (374.954+309.583)/ 2 )
=-117.928/342.2685
=-34.45 %

Tesco's annualized ROE % for the quarter that ended in Sep. 2017 is calculated as

ROE %=Net Income (Q: Sep. 2017 )/( (Total Stockholders Equity (Q: Jun. 2017 )+Total Stockholders Equity (Q: Sep. 2017 ))/ count )
=-52.112/( (286.438+274.481)/ 2 )
=-52.112/280.4595
=-18.58 %

* 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. 2017) net income data. ROE % is displayed in the 30-year financial page.


Tesco  (NAS:TESO) 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. 2017 )
=Net Income/Total Stockholders Equity
=-52.112/280.4595
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-52.112 / 162.056)*(162.056 / 318.666)*(318.666 / 280.4595)
=Net Margin %*Asset Turnover*Equity Multiplier
=-32.16 %*0.5085*1.1362
=ROA %*Equity Multiplier
=-16.35 %*1.1362
=-18.58 %

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. 2017 )
=Net Income/Total Stockholders Equity
=-52.112/280.4595
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-52.112 / -51.78) * (-51.78 / -50.812) * (-50.812 / 162.056) * (162.056 / 318.666) * (318.666 / 280.4595)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0064 * 1.0191 * -31.35 % * 0.5085 * 1.1362
=-18.58 %

Note: The net income data used here is four times the quarterly (Sep. 2017) net income data. The Revenue data used here is four times the quarterly (Sep. 2017) 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.


Tesco ROE % Related Terms

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


Tesco (TESO) Business Description

Traded in Other Exchanges
N/A
Address
Tesco Corp is engaged in designing, manufacturing and service delivery of technology based solutions for the upstream energy industry. Its products and service offerings consist of equipment sales and services to drilling contractors.
Executives
Roy Mcniven officer: Vice President, TCUS 24955 INTERSTATE 45 N, THE WOODLANDS TX 77380
Elijio V Serrano director 24955 INTERSTATE 45 NORTH, THE WOODLANDS TX 77380
Michael W Sutherlin director 7374 SE 71ST STREET, MERCER ISLAND WA 98040
John Dielwart director 5320 LEGACY DR., PLANO TX 75024
Rose M Robeson director 370 17TH STREET, SUITE 2775, DENVER CO 80202
Sloan Thomas B Jr officer: Vice President 3993 W SAM HOUSTON PKWY N., STE 100, HOUSTON TX 77043
Julio M Quintana director 3993 W. SAM HOUSTON PARKWAY N., STE. 100, HOUSTON TX 77043
John T Reynolds director, 10 percent owner C/O C/O LIME ROCK PARTNERS, 518 RIVER SIDE AVE BLDG 11 2ND FL, WESTPORT CT 06880
Lime Rock Partners V Lp 10 percent owner C/O LIME ROCK MANAGEMENT LP, 274 RIVERSIDE AVE, 3RD FLOOR, WESTPORT CT 06880
Lrp V Luxembourg Holdings S.a R.l. 10 percent owner VERTIGO NAOS BUILDING, 6, RUE EUGENE RUPPERT, LUXEMBOURG N4 L-2453
John U Clarke director PENN VIRGINIA CORPORATION, FOUR RADNOR CORPORATE CENTER, STE 200, RADNOR PA 19087
Clifton Thomas Weatherford director 1001 E. HILLSDALE BOULEVARD, SUITE 800, FOSTER CITY CA 94404
Nigel M Lakey officer: Sr. VP, Marketing & Bus. Dev. 10260 WESTHEIMER RD., HOUSTON TX 77042
Anthony Tripodo officer: Exec. V. P. & CFO 3505 W SAM HOUSTON PKWY NORTH, SUITE 400, HOUSTON TX 77043
Capital Management Oss 10 percent owner 598 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10022

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