SL Industries (SL Industries) ROE % : 8.22% (As of Mar. 2016)

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What is SL Industries ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. SL Industries's annualized net income for the quarter that ended in Mar. 2016 was $6.4 Mil. SL Industries's average Total Stockholders Equity over the quarter that ended in Mar. 2016 was $77.6 Mil. Therefore, SL Industries's annualized ROE % for the quarter that ended in Mar. 2016 was 8.22%.

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

SLI's ROE % is not ranked ^*
in the Hardware industry.
Industry Median: 4.7
* Ranked among companies with meaningful ROE % only.

SL Industries ROE % Historical Data

The historical data trend for SL 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.

SL Industries ROE % Chart

SL Industries Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROE %

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15.75

14.50

15.04

27.69

13.86

SL Industries Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
ROE %	Get a 7-Day Free Trial															13.24	18.97	6.11	18.16	8.22

Competitive Comparison of SL Industries's ROE %

For the Electronic Components subindustry, SL 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.

SL Industries's ROE % Distribution in the Hardware Industry

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

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

SL Industries ROE % Calculation

SL Industries's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %	=	Net Income (A: Dec. 2015 )	/	( (Total Stockholders Equity (A: Dec. 2014 )	+	Total Stockholders Equity (A: Dec. 2015 ))	/ count )
	=	10.698	/	( (77.321	+	77.003)	/ 2 )
	=	10.698	/	77.162
	=	13.86 %

SL Industries's annualized ROE % for the quarter that ended in Mar. 2016 is calculated as

ROE %	=	Net Income (Q: Mar. 2016 )	/	( (Total Stockholders Equity (Q: Dec. 2015 )	+	Total Stockholders Equity (Q: Mar. 2016 ))	/ count )
	=	6.384	/	( (77.003	+	78.232)	/ 2 )
	=	6.384	/	77.6175
	=	8.22 %

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

SL Industries (AMEX:SLI) 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: Mar. 2016 )
=	Net Income	/	Total Stockholders Equity
=	6.384	/	77.6175
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(6.384 / 197.98)	*	(197.98 / 132.0945)	*	(132.0945 / 77.6175)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	3.22 %	*	1.4988	*	1.7019
=	ROA %	*	Equity Multiplier
=	4.83 %	*	1.7019
=	8.22 %

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: Mar. 2016 )
=	Net Income	/	Total Stockholders Equity
=	6.384	/	77.6175
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(6.384 / 12.848)	*	(12.848 / 12.932)	*	(12.932 / 197.98)	*	(197.98 / 132.0945)	*	(132.0945 / 77.6175)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.4969	*	0.9935	*	6.53 %	*	1.4988	*	1.7019
=	8.22 %

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

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.

SL Industries ROE % Related Terms

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

SL Industries (SL Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » SL Industries Inc (AMEX:SLI) » Definitions » ROE %

Traded in Other Exchanges

N/A

Address

Website

http://www.slindustries.com

SL Industries Inc was incorporated as G-L Electronics Company in the state of New Jersey on March 29, 1956. The Companys name was changed to G-L Industries, Inc. in November 1963; SGL Industries, Inc. in November 1970; and then to the present name of SL Industries, Inc. in September 1984. The Company through its subsidiaries, designs, manufactures and markets power electronics, motion control, power protection, power quality, and specialized communication equipment that is used in a variety of medical, commercial and military aerospace, solar, computer, datacom, industrial, telecom, transportation, utility, rail and highway equipment applications. Its products are generally incorporated into larger systems to improve operating performance, safety, reliability and efficiency. The Companys products are largely sold to Original Equipment Manufacturers (OEMs), the utility industry and, to a lesser extent, to commercial distributors. The Company currently operates under four business segments: SL Power Electronics Corp. (SLPE), the High Power Group, SL Montevideo Technology, Inc. (SL-MTI) and RFL Electronics Inc. (RFL). TEAL Electronics Corp. (TEAL) and MTE Corporation (MTE) are combined into one business segment, which is reported as the High Power Group. SL Power Electronics Corp. designs, manufactures and markets high-reliability power conversion products in internal and external footprints. The Companys power supplies provide a reliable and safe power source for the customers specific equipment needs. SLPE, which sells products under three brand names (SL Power Electronics, Condor and Ault), is a supplier to the OEMs of medical, industrial/instrumentation, LED, and information technology equipment. The High Power Group sells products under two brand names: TEAL and MTE. TEAL designs and manufactures power quality products that include noise suppression isolation transformers, power conditioned distribution systems, voltage regulators, and high level integrated cabinets with preinstalled prewired power quality and distribution components. TEAL sells to OEMs of medical imaging, medical treatment, military aerospace, semiconductor, solar, and simulation systems. MTE designs and manufactures power quality solutions used to protect electrical equipment, bring harmonics into compliance, and improve the efficiency of variable speed motor drive systems. MTEs standard product lines include: harmonic filters, three-phase AC reactors, DC link chokes, and motor protection filters. TEAL and MTE also design and build customer specific and custom products for special applications. These products are typically used in industrial plants, renewable energy facilities, and commercial buildings. SL-MTI designs and manufactures high power density precision motors that are used in numerous mission critical applications, including military and commercial aerospace, oil and gas, medical, and industrial products. RFL designs and manufactures communication

Executives

Fejes William Theodore Jr	officer: President and CEO	440 NORTH FIFTH AVENUE, CHAMBERSBURG PA 17201
James A Risher	director	8609 SIX FORKS RD, RALEIGH NC 27615
Louis J Belardi	officer: CFO, Secretary and Treasurer	520 FELLOWSHIP ROAD, SUITE A114, MT. LAUREL NJ 08054
Glen M Kassan	director, other: See Explanation of Responses	C/O STEEL PARTNERS, 590 MADISON AVE, NEW YORK NY 10022
Warren G Lichtenstein	director, other: See Explanation of Responses	C/O STEEL PARTNERS II L P, 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Mark E Schwarz	director	5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Avrum Gray	director	440 S LASALLE ST STE 650, CHIACAGO IL 60605
Sph Group Holdings Llc	10 percent owner	C/O STEEL PARTNERS HOLDINGS L.P., 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Sph Group Llc	10 percent owner	C/O STEEL PARTNERS HOLDINGS L.P., 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Holdings Gp Inc.	10 percent owner	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Holdings L.p.	10 percent owner	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Llc	10 percent owner	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Partners Ii Lp	10 percent owner	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
James R Henderson	other: Former Director as of 3/30/10
Steel Partners Llc	10 percent owner	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022