GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Pacific Brands Ltd (OTCPK:PFBDY) » Definitions » ROE %

Pacific Brands (Pacific Brands) ROE % : -21.26% (As of Jun. 2015)


View and export this data going back to 2008. Start your Free Trial

What is Pacific Brands ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Pacific Brands's annualized net income for the quarter that ended in Jun. 2015 was $-75.4 Mil. Pacific Brands's average Total Stockholders Equity over the quarter that ended in Jun. 2015 was $354.8 Mil. Therefore, Pacific Brands's annualized ROE % for the quarter that ended in Jun. 2015 was -21.26%.

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

PFBDY's ROE % is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 4.27
* Ranked among companies with meaningful ROE % only.

Pacific Brands ROE % Historical Data

The historical data trend for Pacific Brands'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.

Pacific Brands ROE % Chart

Pacific Brands Annual Data
Trend Jun05 Jun06 Jun07 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.52 -46.40 10.09 -37.65 -21.26

Pacific Brands Semi-Annual Data
Jun03 Jun05 Jun06 Jun07 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -11.52 -46.40 10.09 -37.65 -21.26

Competitive Comparison of Pacific Brands's ROE %

For the Apparel Manufacturing subindustry, Pacific Brands'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.


Pacific Brands's ROE % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Pacific Brands's ROE % distribution charts can be found below:

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



Pacific Brands ROE % Calculation

Pacific Brands's annualized ROE % for the fiscal year that ended in Jun. 2015 is calculated as

ROE %=Net Income (A: Jun. 2015 )/( (Total Stockholders Equity (A: Jun. 2014 )+Total Stockholders Equity (A: Jun. 2015 ))/ count )
=-75.412/( (420.241+289.335)/ 2 )
=-75.412/354.788
=-21.26 %

Pacific Brands's annualized ROE % for the quarter that ended in Jun. 2015 is calculated as

ROE %=Net Income (Q: Jun. 2015 )/( (Total Stockholders Equity (Q: Jun. 2014 )+Total Stockholders Equity (Q: Jun. 2015 ))/ count )
=-75.412/( (420.241+289.335)/ 2 )
=-75.412/354.788
=-21.26 %

* 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 one times the annual (Jun. 2015) net income data. ROE % is displayed in the 30-year financial page.


Pacific Brands  (OTCPK:PFBDY) 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. 2015 )
=Net Income/Total Stockholders Equity
=-75.412/354.788
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-75.412 / 609.322)*(609.322 / 699.5525)*(699.5525 / 354.788)
=Net Margin %*Asset Turnover*Equity Multiplier
=-12.38 %*0.871*1.9717
=ROA %*Equity Multiplier
=-10.78 %*1.9717
=-21.26 %

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. 2015 )
=Net Income/Total Stockholders Equity
=-75.412/354.788
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-75.412 / -75.383) * (-75.383 / -66.047) * (-66.047 / 609.322) * (609.322 / 699.5525) * (699.5525 / 354.788)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0004 * 1.1414 * -10.84 % * 0.871 * 1.9717
=-21.26 %

Note: The net income data used here is one times the annual (Jun. 2015) net income data. The Revenue data used here is one times the annual (Jun. 2015) 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.


Pacific Brands ROE % Related Terms

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


Pacific Brands (Pacific Brands) Business Description

Traded in Other Exchanges
N/A
Address
Pacific Brands Limited manufactures, sources, markets, and sells consumer products. Its products include intimate apparel, hosiery & bonds outerwear products for women, men, and children under Bonds, Razzamatazz, Rio, Voodoo among other brands.

Pacific Brands (Pacific Brands) Headlines

No Headlines