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AlarmForce Industries (AlarmForce Industries) ROE % : 127.39% (As of Jul. 2017)


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What is AlarmForce Industries ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. AlarmForce Industries's annualized net income for the quarter that ended in Jul. 2017 was $34.11 Mil. AlarmForce Industries's average Total Stockholders Equity over the quarter that ended in Jul. 2017 was $26.77 Mil. Therefore, AlarmForce Industries's annualized ROE % for the quarter that ended in Jul. 2017 was 127.39%.

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

ARFCF's ROE % is not ranked *
in the Business Services industry.
Industry Median: 8.71
* Ranked among companies with meaningful ROE % only.

AlarmForce Industries ROE % Historical Data

The historical data trend for AlarmForce Industries'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.

AlarmForce Industries ROE % Chart

AlarmForce Industries Annual Data
Trend Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.66 16.01 23.65 13.57 -1.72

AlarmForce Industries Quarterly Data
Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 -19.29 -35.46 14.78 30.51 127.39

Competitive Comparison of AlarmForce Industries's ROE %

For the Security & Protection Services subindustry, AlarmForce Industries'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.


AlarmForce Industries's ROE % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, AlarmForce Industries's ROE % distribution charts can be found below:

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



AlarmForce Industries ROE % Calculation

AlarmForce Industries's annualized ROE % for the fiscal year that ended in Oct. 2016 is calculated as

ROE %=Net Income (A: Oct. 2016 )/( (Total Stockholders Equity (A: Oct. 2015 )+Total Stockholders Equity (A: Oct. 2016 ))/ count )
=-0.385/( (23.599+21.202)/ 2 )
=-0.385/22.4005
=-1.72 %

AlarmForce Industries's annualized ROE % for the quarter that ended in Jul. 2017 is calculated as

ROE %=Net Income (Q: Jul. 2017 )/( (Total Stockholders Equity (Q: Apr. 2017 )+Total Stockholders Equity (Q: Jul. 2017 ))/ count )
=34.108/( (22.307+31.24)/ 2 )
=34.108/26.7735
=127.39 %

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


AlarmForce Industries  (OTCPK:ARFCF) 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: Jul. 2017 )
=Net Income/Total Stockholders Equity
=34.108/26.7735
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(34.108 / 31.6)*(31.6 / 38.3465)*(38.3465 / 26.7735)
=Net Margin %*Asset Turnover*Equity Multiplier
=107.94 %*0.8241*1.4323
=ROA %*Equity Multiplier
=88.95 %*1.4323
=127.39 %

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: Jul. 2017 )
=Net Income/Total Stockholders Equity
=34.108/26.7735
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (34.108 / -1.924) * (-1.924 / 0.664) * (0.664 / 31.6) * (31.6 / 38.3465) * (38.3465 / 26.7735)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -17.7277 * -2.8976 * 2.1 % * 0.8241 * 1.4323
=127.39 %

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


AlarmForce Industries ROE % Related Terms

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AlarmForce Industries (AlarmForce Industries) Business Description

Traded in Other Exchanges
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Address
AlarmForce Industries Inc is a Canada based company provides security based solutions. It primarily offers security alarm monitoring, personal emergency response monitoring, video surveillance and related services. The company provides home security systems, which includes home security; home automation; smoke, flood, and carbon monoxide detection, and Bundles. The company's business security systems include business security and video, business automation and customized solutions. The industry serves both residential and commercial market. Geographically the firm offers services to subscribers throughout Canada and selected centres across the United States of America. AlarmForce derives most of the revenue from the sale of security-based products.

AlarmForce Industries (AlarmForce Industries) Headlines

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