Optical Cable (Optical Cable) ROE %

: -23.72% (As of Jan. 2024)

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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Optical Cable's annualized net income for the quarter that ended in Jan. 2024 was $-5.70 Mil. Optical Cable's average Total Stockholders Equity over the quarter that ended in Jan. 2024 was $24.04 Mil. Therefore, Optical Cable's annualized ROE % for the quarter that ended in Jan. 2024 was -23.72%.

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

OCC' s ROE % Range Over the Past 10 Years
Min: -33.54 Med: -4.24 Max: 35.29
Current: -0.69

During the past 13 years, Optical Cable's highest ROE % was 35.29%. The lowest was -33.54%. And the median was -4.24%.

OCC's ROE % is ranked worse than
67.59% of 2410 companies
in the Hardware industry
Industry Median: 4.72 vs OCC: -0.69

Optical Cable ROE % Historical Data

The historical data trend for Optical Cable'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.

Optical Cable Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROE %

-23.60

-33.54

35.29

-1.56

8.81

Optical Cable Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROE %																14.35	39.91	1.57	-20.05	-23.72

Competitive Comparison

For the Communication Equipment subindustry, Optical Cable'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.

Optical Cable ROE % Distribution

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

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

Optical Cable ROE % Calculation

Optical Cable's annualized ROE % for the fiscal year that ended in Oct. 2023 is calculated as

ROE %	=	Net Income (A: Oct. 2023 )	/	( (Total Stockholders Equity (A: Oct. 2022 )	+	Total Stockholders Equity (A: Oct. 2023 ))	/ count )
	=	2.066	/	( (22.16	+	24.722)	/ 2 )
	=	2.066	/	23.441
	=	8.81 %

Optical Cable's annualized ROE % for the quarter that ended in Jan. 2024 is calculated as

ROE %	=	Net Income (Q: Jan. 2024 )	/	( (Total Stockholders Equity (Q: Oct. 2023 )	+	Total Stockholders Equity (Q: Jan. 2024 ))	/ count )
	=	-5.7	/	( (24.722	+	23.348)	/ 2 )
	=	-5.7	/	24.035
	=	-23.72 %

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 (Jan. 2024) net income data. ROE % is displayed in the 30-year financial page.

Optical Cable (NAS:OCC) 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: Jan. 2024 )
=	Net Income	/	Total Stockholders Equity
=	-5.7	/	24.035
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-5.7 / 59.42)	*	(59.42 / 42.1865)	*	(42.1865 / 24.035)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-9.59 %	*	1.4085	*	1.7552
=	ROA %	*	Equity Multiplier
=	-13.51 %	*	1.7552
=	-23.72 %

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: Jan. 2024 )
=	Net Income	/	Total Stockholders Equity
=	-5.7	/	24.035
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-5.7 / -5.672)	*	(-5.672 / -5.6)	*	(-5.6 / 59.42)	*	(59.42 / 42.1865)	*	(42.1865 / 24.035)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	1.0049	*	1.0129	*	-9.42 %	*	1.4085	*	1.7552
=	-23.72 %

Note: The net income data used here is four times the quarterly (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 2024) 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.

Optical Cable ROE % Related Terms

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Optical Cable (Optical Cable) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Optical Cable Corp (NAS:OCC) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

OCC:Germany

Address

5290 Concourse Drive, Roanoke, VA, USA, 24019

Website

https://www.occfiber.com

Optical Cable Corp manufactures tight-buffered fiber optic & copper data communication cables, data communication connectivity solutions for enterprise markets, and customized solutions for specialty use & harsh environments. Its products and services include designs and customized products for specialty applications and harsh environments, cabling, connectors, patch cords, assemblies, racks, cabinets, datacom enclosures, patch panels, faceplates, and multi-media boxes. The company supplies its products and services to industries such as the military, industrial, mining, petrochemical, broadcast, oil & gas, and others.

Executives

Randall H Frazier	director
Wilkin Neil D Jr	director, officer: President and CFO
Williamson John B Iii	director	PO BOX 13007, ROANOKE VA 24030
Nygren John A Jr	director	567 SEAFORD LANE, MATHEWS VA 23109
Craig H Weber	director
William Russell Reynolds	officer: SR VP OF SALES	106 DISTANT VIEW DRIVE, ASHEVILLE NC 28803
Tracy G Smith	officer: Chief Financial Officer
Luke J Huybrechts	director, officer: SVP Sales
Charles W Carson	officer: SVP Marketing & Strategy
Ted W Leonard	officer: VP Sales - USA
John M Holland	director