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Prism Medical (Prism Medical) ROE % : 11.60% (As of May. 2016)


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What is Prism Medical ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Prism Medical's annualized net income for the quarter that ended in May. 2016 was $2.08 Mil. Prism Medical's average Total Stockholders Equity over the quarter that ended in May. 2016 was $17.97 Mil. Therefore, Prism Medical's annualized ROE % for the quarter that ended in May. 2016 was 11.60%.

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

PSDLF's ROE % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 0.25
* Ranked among companies with meaningful ROE % only.

Prism Medical ROE % Historical Data

The historical data trend for Prism Medical'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.

Prism Medical ROE % Chart

Prism Medical Annual Data
Trend Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.55 6.90 12.51 66.86 1.21

Prism Medical Quarterly Data
Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16
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 6.63 -7.57 -0.48 0.91 11.60

Competitive Comparison of Prism Medical's ROE %

For the Medical Instruments & Supplies subindustry, Prism Medical'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.


Prism Medical's ROE % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Prism Medical's ROE % distribution charts can be found below:

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



Prism Medical ROE % Calculation

Prism Medical's annualized ROE % for the fiscal year that ended in Nov. 2015 is calculated as

ROE %=Net Income (A: Nov. 2015 )/( (Total Stockholders Equity (A: Nov. 2014 )+Total Stockholders Equity (A: Nov. 2015 ))/ count )
=0.252/( (23.384+18.098)/ 2 )
=0.252/20.741
=1.21 %

Prism Medical's annualized ROE % for the quarter that ended in May. 2016 is calculated as

ROE %=Net Income (Q: May. 2016 )/( (Total Stockholders Equity (Q: Feb. 2016 )+Total Stockholders Equity (Q: May. 2016 ))/ count )
=2.084/( (17.76+18.18)/ 2 )
=2.084/17.97
=11.60 %

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


Prism Medical  (OTCPK:PSDLF) 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: May. 2016 )
=Net Income/Total Stockholders Equity
=2.084/17.97
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2.084 / 48.44)*(48.44 / 39.433)*(39.433 / 17.97)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.3 %*1.2284*2.1944
=ROA %*Equity Multiplier
=5.28 %*2.1944
=11.60 %

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: May. 2016 )
=Net Income/Total Stockholders Equity
=2.084/17.97
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2.084 / 2.708) * (2.708 / 2.952) * (2.952 / 48.44) * (48.44 / 39.433) * (39.433 / 17.97)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7696 * 0.9173 * 6.09 % * 1.2284 * 2.1944
=11.60 %

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


Prism Medical ROE % Related Terms

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Prism Medical (Prism Medical) Business Description

Traded in Other Exchanges
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Address
Prism Medical Ltd. is a provider of durable medical equipment and related services to the mobility disadvantaged in Canada, the USA and the United Kingdom.

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