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Vascular Solutions (Vascular Solutions) ROE % : 15.74% (As of Sep. 2016)


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What is Vascular Solutions ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Vascular Solutions's annualized net income for the quarter that ended in Sep. 2016 was $21.8 Mil. Vascular Solutions's average Total Stockholders Equity over the quarter that ended in Sep. 2016 was $138.3 Mil. Therefore, Vascular Solutions's annualized ROE % for the quarter that ended in Sep. 2016 was 15.74%.

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

VASC's ROE % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 0.31
* Ranked among companies with meaningful ROE % only.

Vascular Solutions ROE % Historical Data

The historical data trend for Vascular Solutions'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.

Vascular Solutions ROE % Chart

Vascular Solutions Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.89 13.80 12.86 12.15 8.67

Vascular Solutions Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 9.71 4.93 -0.80 16.60 15.74

Competitive Comparison of Vascular Solutions's ROE %

For the Medical Devices subindustry, Vascular Solutions'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.


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

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

* The bar in red indicates where Vascular Solutions's ROE % falls into.



Vascular Solutions ROE % Calculation

Vascular Solutions'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 )
=10.464/( (113.34+128.144)/ 2 )
=10.464/120.742
=8.67 %

Vascular Solutions's annualized ROE % for the quarter that ended in Sep. 2016 is calculated as

ROE %=Net Income (Q: Sep. 2016 )/( (Total Stockholders Equity (Q: Jun. 2016 )+Total Stockholders Equity (Q: Sep. 2016 ))/ count )
=21.76/( (134.11+142.408)/ 2 )
=21.76/138.259
=15.74 %

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


Vascular Solutions  (NAS:VASC) 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: Sep. 2016 )
=Net Income/Total Stockholders Equity
=21.76/138.259
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(21.76 / 167.092)*(167.092 / 152.635)*(152.635 / 138.259)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.02 %*1.0947*1.104
=ROA %*Equity Multiplier
=14.25 %*1.104
=15.74 %

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: Sep. 2016 )
=Net Income/Total Stockholders Equity
=21.76/138.259
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (21.76 / 29.032) * (29.032 / 28.944) * (28.944 / 167.092) * (167.092 / 152.635) * (152.635 / 138.259)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7495 * 1.003 * 17.32 % * 1.0947 * 1.104
=15.74 %

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


Vascular Solutions ROE % Related Terms

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


Vascular Solutions (Vascular Solutions) Business Description

Traded in Other Exchanges
N/A
Address
Vascular Solutions Inc was incorporated in the state of Minnesota in December 1996. It is a medical device company, creates new minimally invasive medical devices, and delivers these products and related services to physicians through its direct domestic sales force and its international distribution network. The Company's products and services are divided into three categories: Catheter products; Hemostat products and Vein products and services. Catheter products consist principally of catheters used in minimally invasive medical procedures for the diagnosis or treatment of vascular conditions, such as the GuideLiner catheter used to access discrete regions of the coronary anatomy and the Pronto extraction catheters used in treating acute myocardial infarction. Hemostat products consist principally of blood clotting products, such as the D-Stat Dry hemostat, a topical thrombin-based pad with a bandage used to control surface bleeding, and the D-Stat Flowable, a thick yet flowable thrombin-based mixture for preventing bleeding in subcutaneous pockets. Vein products and services consist principally of the Vari-Lase endovenous laser, a laser console and procedure kit used for the treatment of varicose veins, and a reprocessing service for the ClosureFAST radiofrequency vein ablation catheter. The Company manufactures its products in its facilities located in the suburbs of Minneapolis, Minnesota and in the country of Ireland. The catheter manufacturing and packaging processes occur under a controlled clean room environment. It purchases components from various suppliers and rely on single sources for several parts of its products. It purchases its requirements for thrombin for use in manufacturing products sold in the U.S. under the Thrombin-JMI Supply Agreement with King. Its main competitors include: Medtronic, Boston Scientific, Covidien, Merit Medical, Marine Polymer Technologies, Cook Medical, Spectranetics, AngioDynamics and Terumo. The Company's products and services are regulated in the United States as medical devices by the FDA under the Federal Food, Drug and Cosmetic Act.
Executives
John L Erb director C/O VASCULAR SOLUTIONS, INC., 6464 SYCAMORE COURT N., MINNEAPOLIS, MN 55369
Richard Nigon director CEDAR POINT CAPITAL, 150 SOUTH 5TH STREET, MINNEAPOLIS MN 55402
Richard W Kramp director 174 STONEBRIDGE ROAD, ST. PAUL MN 55118
Stephens Group Inc 10 percent owner 111 CENTER ST, STE 2300, LITTLE ROCK AR 72201
Paulson J Robert Jr director
Gregg S Sutton officer: VP R&D 6464 SYCAMORE COURT NORTH, MINNEAPOLIS MN 55369
Michael Nagel officer: VP of Sales C/O VASCULAR SOLUTIONS INC, 6464 SYCAMORE COURT NORTH, MINNEAPOLIS MN 55369
Steve Patterson 10 percent owner 111 CENTER STREET STE 2300, LITTLE ROCK AR 72201

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