ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. TRC's annualized net income for the quarter that ended in Mar. 2017 was $18.0 Mil. TRC's average Total Stockholders Equity over the quarter that ended in Mar. 2017 was $165.0 Mil. Therefore, TRC's annualized ROE % for the quarter that ended in Mar. 2017 was 10.90%.
The historical rank and industry rank for TRC's ROE % or its related term are showing as below:
TRR's ROE % is not ranked *
in the Construction industry.
Industry Median: 6.71 * Ranked among companies with meaningful ROE % only.
TRC ROE % Historical Data
The historical data trend for TRC'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.
For the Engineering & Construction subindustry, TRC'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.
TRC's ROE % Distribution in the Construction Industry
For the Construction industry and Industrials sector, TRC's ROE % distribution charts can be found below:
* The bar in red indicates where TRC's ROE % falls into.
TRC ROE % Calculation
TRC's annualized ROE % for the fiscal year that ended in Jun. 2016 is calculated as
* 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 (Mar. 2017) net income data.
ROE % is displayed in the 30-year financial page.
TRC (NYSE:TRR) 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:
Note:
The net income data used here is four times the quarterly (Mar. 2017) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
TRC ROE % Related Terms
Thank you for viewing the detailed overview of TRC's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
TRC Companies Inc was incorporated in 1969. The Company is a national engineering, consulting and construction management firm that provides integrated services to the environmental, energy, and infrastructure markets in the United States. A range of commercial and governmental clients depend on it to design solutions to their toughest business challenges. Its multidisciplinary project teams help its clients implement complex projects from initial concept to delivery and commissioning, maintain and operate their facilities in compliance with regulatory standards and manage their assets through decommissioning, demolition, restoration and disposition. The Company's business segments are Energy, Environmental, and Infrastructure. The Energy segment is strategically positioned to serve key areas within the energy market which is currently investing in modernization, expansion, enhancement and replacement of outdated facilities. The Environmental segment provides services to its clients including air quality modeling, air emissions testing and monitoring, cultural and natural resource management, permitting of energy facilities and remediation of contaminated sites. The Infrastructure segment offers a variety of services to its infrastructure clients mainly related to: rehabilitation of overburdened and deteriorating infrastructure systems; design, construction engineering inspection and construction management associated with new infrastructure projects; and management of risks related to security of public and private facilities. It competes with both the large international firms and the small niche or geographically focused firms. The Company's business is subjected to various rules and regulations at the federal, state and local government levels.
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