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Gigamon (Gigamon) ROE % : 2.97% (As of Sep. 2017)


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What is Gigamon ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Gigamon's annualized net income for the quarter that ended in Sep. 2017 was $8.7 Mil. Gigamon's average Total Stockholders Equity over the quarter that ended in Sep. 2017 was $293.6 Mil. Therefore, Gigamon's annualized ROE % for the quarter that ended in Sep. 2017 was 2.97%.

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

GIMO's ROE % is not ranked *
in the Hardware industry.
Industry Median: 4.54
* Ranked among companies with meaningful ROE % only.

Gigamon ROE % Historical Data

The historical data trend for Gigamon'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.

Gigamon ROE % Chart

Gigamon Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Negative Equity -20.42 -34.15 4.57 23.65

Gigamon 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 10.50 10.13 -3.29 -10.33 2.97

Competitive Comparison of Gigamon's ROE %

For the Communication Equipment subindustry, Gigamon'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.


Gigamon's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Gigamon's ROE % distribution charts can be found below:

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



Gigamon ROE % Calculation

Gigamon'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 )
=49.432/( (155.356+262.66)/ 2 )
=49.432/209.008
=23.65 %

Gigamon'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 )
=8.712/( (286.879+300.341)/ 2 )
=8.712/293.61
=2.97 %

* 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.


Gigamon  (NYSE:GIMO) 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
=8.712/293.61
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(8.712 / 316.764)*(316.764 / 424.8815)*(424.8815 / 293.61)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.75 %*0.7455*1.4471
=ROA %*Equity Multiplier
=2.05 %*1.4471
=2.97 %

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
=8.712/293.61
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (8.712 / 2.588) * (2.588 / 1.388) * (1.388 / 316.764) * (316.764 / 424.8815) * (424.8815 / 293.61)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 3.3663 * 1.8646 * 0.44 % * 0.7455 * 1.4471
=2.97 %

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.


Gigamon ROE % Related Terms

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


Gigamon (Gigamon) Business Description

Traded in Other Exchanges
N/A
Address
Gigamon Inc develops designs and sells solutions and products that deliver visibility of traffic across networks. It serves global enterprises, service providers and governments.
Executives
John H Kispert director
Dario Zamarian director 3300 OLCOTT STREET, SANTA CLARA CA 95054
Paul Hooper director, officer: Chief Executive Officer 3585 MONROE STREET, SANTA CLARA CA 95051
Paul J Milbury director
Coviello Arthur W Jr director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Rex S Jackson officer: Chief Financial Officer C/O SYMYX TECHNOLOGIES, INC., 3100 CENTRAL EXPRESSWAY, SANTA CLARA CA 95051
Robert E Switz director 13625 TECHNOLOGY DRIVE, EDEN PRAIRIE MN 55344
Helmut Wilke officer: Sr. VP Worldwide Sales 3585 MONROE STREET, SANTA CLARA CA 95051
Kenneth A Goldman director C/O YAHOO! INC., 701 FIRST AVENUE, SUNNYVALE CA 94089
Highland Capital Partners Vii-b L P 10 percent owner 92 HAYDEN AVE, LEXINGTON MA 02421
Highland Capital Partners Vii-c Lp 10 percent owner 92 HAYDEN AVE, LEXINGTON MA 02421
Highland Capital Partners Vii Lp 10 percent owner 92 HAYDEN AVE, LEXINGTON MA 02421
Highland Entrepreneurs Fund Vii Limited Partnership 10 percent owner 92 HAYDEN AVENUE, LEXINGTON MA 02421
Highland Management Partners Vii, Llc 10 percent owner ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142
Highland Management Partners Vii Limited Partnership 10 percent owner ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142

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