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Redflex Holdings (Redflex Holdings) ROE % : -10.95% (As of Dec. 2020)


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What is Redflex Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Redflex Holdings's annualized net income for the quarter that ended in Dec. 2020 was $-4.67 Mil. Redflex Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2020 was $42.68 Mil. Therefore, Redflex Holdings's annualized ROE % for the quarter that ended in Dec. 2020 was -10.95%.

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

RFLXY' s ROE % Range Over the Past 10 Years
Min: -36.01   Med: -5.97   Max: 13.84
Current: -16.01

During the past 13 years, Redflex Holdings's highest ROE % was 13.84%. The lowest was -36.01%. And the median was -5.97%.

RFLXY's ROE % is not ranked
in the Business Services industry.
Industry Median: 8.71 vs RFLXY: -16.01

Redflex Holdings ROE % Historical Data

The historical data trend for Redflex Holdings'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.

Redflex Holdings ROE % Chart

Redflex Holdings Annual Data
Trend Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.36 -36.47 -16.38 -7.19 -15.19

Redflex Holdings Semi-Annual Data
Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20
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 -2.39 -12.08 -9.70 -20.97 -10.95

Competitive Comparison of Redflex Holdings's ROE %

For the Security & Protection Services subindustry, Redflex Holdings'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.


Redflex Holdings's ROE % Distribution in the Business Services Industry

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

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



Redflex Holdings ROE % Calculation

Redflex Holdings's annualized ROE % for the fiscal year that ended in Jun. 2020 is calculated as

ROE %=Net Income (A: Jun. 2020 )/( (Total Stockholders Equity (A: Jun. 2019 )+Total Stockholders Equity (A: Jun. 2020 ))/ count )
=-7.184/( (51.109+43.46)/ 2 )
=-7.184/47.2845
=-15.19 %

Redflex Holdings's annualized ROE % for the quarter that ended in Dec. 2020 is calculated as

ROE %=Net Income (Q: Dec. 2020 )/( (Total Stockholders Equity (Q: Jun. 2020 )+Total Stockholders Equity (Q: Dec. 2020 ))/ count )
=-4.672/( (43.46+41.905)/ 2 )
=-4.672/42.6825
=-10.95 %

* 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 two times the semi-annual (Dec. 2020) net income data. ROE % is displayed in the 30-year financial page.


Redflex Holdings  (OTCPK:RFLXY) 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: Dec. 2020 )
=Net Income/Total Stockholders Equity
=-4.672/42.6825
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.672 / 78.784)*(78.784 / 87.072)*(87.072 / 42.6825)
=Net Margin %*Asset Turnover*Equity Multiplier
=-5.93 %*0.9048*2.04
=ROA %*Equity Multiplier
=-5.37 %*2.04
=-10.95 %

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: Dec. 2020 )
=Net Income/Total Stockholders Equity
=-4.672/42.6825
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-4.672 / -5.202) * (-5.202 / -3.918) * (-3.918 / 78.784) * (78.784 / 87.072) * (87.072 / 42.6825)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8981 * 1.3277 * -4.97 % * 0.9048 * 2.04
=-10.95 %

Note: The net income data used here is two times the semi-annual (Dec. 2020) net income data. The Revenue data used here is two times the semi-annual (Dec. 2020) 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.


Redflex Holdings ROE % Related Terms

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Redflex Holdings (Redflex Holdings) Business Description

Traded in Other Exchanges
N/A
Address
31 Market Street, South Melbourne, Melbourne, VIC, AUS, 3205
Redflex Holdings Ltd designs and manufactures solutions for road congestion and safety, effective flow of traffic, ticketless parking systems, video surveillance, and back-office solutions. The company's geographical segments include the Americas and Australia/International. It generates maximum revenue from the Americas segment. The America's traffic business is predominantly a Build Own Operate and Maintain (BOOM) business providing fully outsourced traffic enforcement programs. Its Australia/International traffic business involves the sale of traffic enforcement products.

Redflex Holdings (Redflex Holdings) Headlines

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