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Fareast Finance & Investment (DHA:FAREASTFIN) ROE % : -163.65% (As of Sep. 2020)


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What is Fareast Finance & Investment ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Fareast Finance & Investment's annualized net income for the quarter that ended in Sep. 2020 was BDT-387.24 Mil. Fareast Finance & Investment's average Total Stockholders Equity over the quarter that ended in Sep. 2020 was BDT236.63 Mil. Therefore, Fareast Finance & Investment's annualized ROE % for the quarter that ended in Sep. 2020 was -163.65%.

The historical rank and industry rank for Fareast Finance & Investment's ROE % or its related term are showing as below:

DHA:FAREASTFIN's ROE % is not ranked *
in the Credit Services industry.
Industry Median: 6.295
* Ranked among companies with meaningful ROE % only.

Fareast Finance & Investment ROE % Historical Data

The historical data trend for Fareast Finance & Investment'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.

Fareast Finance & Investment ROE % Chart

Fareast Finance & Investment Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROE %
Get a 7-Day Free Trial 9.75 4.91 -60.31 11.89 -86.94

Fareast Finance & Investment Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 -428.23 341.99 -117.84 -78.41 -163.65

Competitive Comparison of Fareast Finance & Investment's ROE %

For the Credit Services subindustry, Fareast Finance & Investment'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.


Fareast Finance & Investment's ROE % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Fareast Finance & Investment's ROE % distribution charts can be found below:

* The bar in red indicates where Fareast Finance & Investment's ROE % falls into.



Fareast Finance & Investment ROE % Calculation

Fareast Finance & Investment's annualized ROE % for the fiscal year that ended in Dec. 2019 is calculated as

ROE %=Net Income (A: Dec. 2019 )/( (Total Stockholders Equity (A: Dec. 2018 )+Total Stockholders Equity (A: Dec. 2019 ))/ count )
=-717.998/( (1184.855+466.858)/ 2 )
=-717.998/825.8565
=-86.94 %

Fareast Finance & Investment's annualized ROE % for the quarter that ended in Sep. 2020 is calculated as

ROE %=Net Income (Q: Sep. 2020 )/( (Total Stockholders Equity (Q: Jun. 2020 )+Total Stockholders Equity (Q: Sep. 2020 ))/ count )
=-387.24/( (285.036+188.227)/ 2 )
=-387.24/236.6315
=-163.65 %

* 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. 2020) net income data. ROE % is displayed in the 30-year financial page.


Fareast Finance & Investment  (DHA:FAREASTFIN) 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. 2020 )
=Net Income/Total Stockholders Equity
=-387.24/236.6315
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-387.24 / -520.828)*(-520.828 / 11208.014)*(11208.014 / 236.6315)
=Net Margin %*Asset Turnover*Equity Multiplier
=74.35 %*-0.0465*47.3648
=ROA %*Equity Multiplier
=-3.46 %*47.3648
=-163.65 %

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. 2020 )
=Net Income/Total Stockholders Equity
=-387.24/236.6315
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-387.24 / -386.328) * (-386.328 / -520.828) * (-520.828 / 11208.014) * (11208.014 / 236.6315)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1.0024 * 74.18 % * -0.0465 * 47.3648
=-163.65 %

Note: The net income data used here is four times the quarterly (Sep. 2020) net income data. The Revenue data used here is four times the quarterly (Sep. 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.


Fareast Finance & Investment ROE % Related Terms

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Fareast Finance & Investment (DHA:FAREASTFIN) Business Description

Traded in Other Exchanges
N/A
Address
52-53, Dilkusha Commercial Area, Eunoos Centre, 8th level, Dhaka, BGD, 1000
Fareast Finance & Investment Ltd provides lease and term finances. It also provides short-term finance, factoring and bond discount and among others. The company's services include Lease Finance, Term Finance, Short Term Finance and Factoring. It include services to clients for all types of machinery, equipment, household durables including vehicle for the purpose of industrial, commercial and personal.

Fareast Finance & Investment (DHA:FAREASTFIN) Headlines

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