Affinity Education Group (ASX:AFJ) ROE % : -2.24% (As of Jun. 2015)

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What is Affinity Education Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Affinity Education Group's annualized net income for the quarter that ended in Jun. 2015 was A$-4.1 Mil. Affinity Education Group's average Total Stockholders Equity over the quarter that ended in Jun. 2015 was A$183.8 Mil. Therefore, Affinity Education Group's annualized ROE % for the quarter that ended in Jun. 2015 was -2.24%.

The historical rank and industry rank for Affinity Education Group's ROE % or its related term are showing as below:

ASX:AFJ' s ROE % Range Over the Past 10 Years
Min: -0.69 Med: 0 Max: 0
Current: -0.69

ASX:AFJ's ROE % is not ranked
in the Personal Services industry.
Industry Median: 8.55 vs ASX:AFJ: -0.69

Affinity Education Group ROE % Historical Data

The historical data trend for Affinity Education Group'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.

Affinity Education Group ROE % Chart

Affinity Education Group Annual Data

Trend

Dec14

ROE %

-2.78

Affinity Education Group Semi-Annual Data
	Jun14	Dec14	Jun15
ROE %	-6.79	1.19	-2.24

Competitive Comparison of Affinity Education Group's ROE %

For the Personal Services subindustry, Affinity Education Group'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.

Affinity Education Group's ROE % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Affinity Education Group's ROE % distribution charts can be found below:

* The bar in red indicates where Affinity Education Group's ROE % falls into.

Affinity Education Group ROE % Calculation

Affinity Education Group's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %	=	Net Income (A: Dec. 2014 )	/	( (Total Stockholders Equity (A: . 20 )	+	Total Stockholders Equity (A: Dec. 2014 ))	/ count )
	=		/	( (	+	)	/ )
	=		/
	=	%

Affinity Education Group's annualized ROE % for the quarter that ended in Jun. 2015 is calculated as

ROE %	=	Net Income (Q: Jun. 2015 )	/	( (Total Stockholders Equity (Q: Dec. 2014 )	+	Total Stockholders Equity (Q: Jun. 2015 ))	/ count )
	=	-4.112	/	( (148.212	+	219.331)	/ 2 )
	=	-4.112	/	183.7715
	=	-2.24 %

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 (Jun. 2015) net income data. ROE % is displayed in the 30-year financial page.

Affinity Education Group (ASX:AFJ) 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: Jun. 2015 )
=	Net Income	/	Total Stockholders Equity
=	-4.112	/	183.7715
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-4.112 / 174.078)	*	(174.078 / 243.06)	*	(243.06 / 183.7715)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-2.36 %	*	0.7162	*	1.3226
=	ROA %	*	Equity Multiplier
=	-1.69 %	*	1.3226
=	-2.24 %

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: Jun. 2015 )
=	Net Income	/	Total Stockholders Equity
=	-4.112	/	183.7715
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-4.112 / -0.262)	*	(-0.262 / 2.246)	*	(2.246 / 174.078)	*	(174.078 / 243.06)	*	(243.06 / 183.7715)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	15.6947	*	-0.1167	*	1.29 %	*	0.7162	*	1.3226
=	-2.24 %

Note: The net income data used here is two times the semi-annual (Jun. 2015) net income data. The Revenue data used here is two times the semi-annual (Jun. 2015) 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.

Affinity Education Group ROE % Related Terms

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Affinity Education Group (ASX:AFJ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Affinity Education Group Ltd (ASX:AFJ) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://investors.affinityeducation.com.au

Affinity Education Group Ltd was incorporated on 21st May, 2013. The Company provides education and care to children aged six weeks to 12 years. Provision of these services includes long day care, before and after school care and occasional care. Its segments include Long day care centers, Outside school-hours care, Family day care, and Occasional care. Long day care centers are set up to primarily offer care to below school age children with working parents. The care can be both full-and-part time. Outside school-hours care provides before and after school short-term care to children of primary school age. Vacation care is also considered part of this segment, providing child care services to parents during school holidays. Family day care is the only area of child care approved under the National Quality Framework that takes place outside of a center, with care provided in the home of an approved educator. This type of care can be all day, part time, occasional or outside school hours. Occasional care offers child care services for children on a casual basis. Centers offering occasional services are primarily set up to provide flexibility to parents with irregular working hours or short-term needs. As with family day care, occasional care is a capped program.

Affinity Education Group (ASX:AFJ) Headlines

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