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AVG Technologies NV (AVG Technologies NV) ROE % : 29.53% (As of Jun. 2016)


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What is AVG Technologies NV ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. AVG Technologies NV's annualized net income for the quarter that ended in Jun. 2016 was $27.8 Mil. AVG Technologies NV's average Total Stockholders Equity over the quarter that ended in Jun. 2016 was $94.1 Mil. Therefore, AVG Technologies NV's annualized ROE % for the quarter that ended in Jun. 2016 was 29.53%.

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

AVGTF's ROE % is not ranked *
in the Software industry.
Industry Median: 3.06
* Ranked among companies with meaningful ROE % only.

AVG Technologies NV ROE % Historical Data

The historical data trend for AVG Technologies NV'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.

AVG Technologies NV ROE % Chart

AVG Technologies NV Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Negative Equity Negative Equity Negative Equity 234.98 76.53

AVG Technologies NV Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 56.19 41.54 95.92 49.46 29.53

Competitive Comparison of AVG Technologies NV's ROE %

For the Software - Application subindustry, AVG Technologies NV'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.


AVG Technologies NV's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, AVG Technologies NV's ROE % distribution charts can be found below:

* The bar in red indicates where AVG Technologies NV's ROE % falls into.



AVG Technologies NV ROE % Calculation

AVG Technologies NV's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=48.891/( (37.157+90.618)/ 2 )
=48.891/63.8875
=76.53 %

AVG Technologies NV's annualized ROE % for the quarter that ended in Jun. 2016 is calculated as

ROE %=Net Income (Q: Jun. 2016 )/( (Total Stockholders Equity (Q: Mar. 2016 )+Total Stockholders Equity (Q: Jun. 2016 ))/ count )
=27.796/( (91.282+96.953)/ 2 )
=27.796/94.1175
=29.53 %

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


AVG Technologies NV  (OTCPK:AVGTF) 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: Jun. 2016 )
=Net Income/Total Stockholders Equity
=27.796/94.1175
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(27.796 / 420.116)*(420.116 / 637.0205)*(637.0205 / 94.1175)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.62 %*0.6595*6.7684
=ROA %*Equity Multiplier
=4.37 %*6.7684
=29.53 %

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: Jun. 2016 )
=Net Income/Total Stockholders Equity
=27.796/94.1175
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (27.796 / 34.244) * (34.244 / 49.616) * (49.616 / 420.116) * (420.116 / 637.0205) * (637.0205 / 94.1175)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8117 * 0.6902 * 11.81 % * 0.6595 * 6.7684
=29.53 %

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

* 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.


AVG Technologies NV ROE % Related Terms

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AVG Technologies NV (AVG Technologies NV) Business Description

Traded in Other Exchanges
N/A
Address
AVG Technologies N.V is functional in the software industry based in the Netherlands. The company designs products which allow the users of internet and computer systems a safe browsing and data management experience. Its product portfolio caters to the consumer and SMB markets across multiple devices and operating systems with Internet security, PC performance optimization, online backup, identity protection, family safety, mobile control and location services and dynamic secure search. AVG's suite of trademark products includes AVG Anti-Virus FREE, AVG Anti-Virus, AVG Web TuneUp, AVG Cleaner-Xperia and HideMyPhone, among others. The company's licenses derived through the consumer market, primarily in the United States are its major revenue drivers.
Executives
Ahmet H Okumus 10 percent owner C/O OKUMUS FUND MANAGEMENT LTD., 767 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10022
Okumus Fund Management Ltd. 10 percent owner 767 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10017
Okumus Opportunistic Value Fund Ltd. 10 percent owner CRAIGMUIR CHAMBERS, SUITE 71, ROAD TOWN, TORTOLA D8 VG 1110

AVG Technologies NV (AVG Technologies NV) Headlines

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