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Environmental Solutions Worldwide (Environmental Solutions Worldwide) ROE % : 397.06% (As of Dec. 2014)


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What is Environmental Solutions Worldwide ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Environmental Solutions Worldwide's annualized net income for the quarter that ended in Dec. 2014 was $42.73 Mil. Environmental Solutions Worldwide's average Total Stockholders Equity over the quarter that ended in Dec. 2014 was $10.76 Mil. Therefore, Environmental Solutions Worldwide's annualized ROE % for the quarter that ended in Dec. 2014 was 397.06%.

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

ESWW's ROE % is not ranked *
in the Vehicles & Parts industry.
Industry Median: 7.36
* Ranked among companies with meaningful ROE % only.

Environmental Solutions Worldwide ROE % Historical Data

The historical data trend for Environmental Solutions Worldwide'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.

Environmental Solutions Worldwide ROE % Chart

Environmental Solutions Worldwide Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - -430.01 -40.42 23.66 112.44

Environmental Solutions Worldwide Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
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 212.06 37.82 96.91 -66.76 397.06

Competitive Comparison of Environmental Solutions Worldwide's ROE %

For the Auto Parts subindustry, Environmental Solutions Worldwide'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.


Environmental Solutions Worldwide's ROE % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Environmental Solutions Worldwide's ROE % distribution charts can be found below:

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



Environmental Solutions Worldwide ROE % Calculation

Environmental Solutions Worldwide'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: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=11.462/( (4.22+16.167)/ 2 )
=11.462/10.1935
=112.44 %

Environmental Solutions Worldwide's annualized ROE % for the quarter that ended in Dec. 2014 is calculated as

ROE %=Net Income (Q: Dec. 2014 )/( (Total Stockholders Equity (Q: Sep. 2014 )+Total Stockholders Equity (Q: Dec. 2014 ))/ count )
=42.732/( (5.357+16.167)/ 2 )
=42.732/10.762
=397.06 %

* 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 (Dec. 2014) net income data. ROE % is displayed in the 30-year financial page.


Environmental Solutions Worldwide  (OTCPK:ESWW) 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: Dec. 2014 )
=Net Income/Total Stockholders Equity
=42.732/10.762
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(42.732 / 20.8)*(20.8 / 21.99)*(21.99 / 10.762)
=Net Margin %*Asset Turnover*Equity Multiplier
=205.44 %*0.9459*2.0433
=ROA %*Equity Multiplier
=194.33 %*2.0433
=397.06 %

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: Dec. 2014 )
=Net Income/Total Stockholders Equity
=42.732/10.762
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (42.732 / 8.728) * (8.728 / 3.576) * (3.576 / 20.8) * (20.8 / 21.99) * (21.99 / 10.762)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 4.896 * 2.4407 * 17.19 % * 0.9459 * 2.0433
=397.06 %

Note: The net income data used here is four times the quarterly (Dec. 2014) net income data. The Revenue data used here is four times the quarterly (Dec. 2014) 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.


Environmental Solutions Worldwide ROE % Related Terms

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


Environmental Solutions Worldwide (Environmental Solutions Worldwide) Business Description

Traded in Other Exchanges
N/A
Address
200 Progress Drive, Montgomerville, PA, USA, 18936
Environmental Solutions Worldwide Inc through its subsidiaries is involved in the designing, development, manufacturing, and sales of emissions control technologies. It also provides emissions testing and environmental certification services. The firm's products include horizondpf, longview dpf, and vista dpf. It has Air testing services and MHDD diesel emission control manufacturing and sales operating segments. The company derives the majority of its revenues from MHDD diesel control segment.
Executives
John J Suydam director C/O APOLLO MANAGEMENT LP, 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Joshua Black director C/O APOLLO MANAGEMENT LP, 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Mark Yung director, other: Remarks C/O 335 CONNIE CRESENT, CONCORD A6 L4K 5R2
John J Hannan director 9 WEST 57TH STREET, NEW YORK NY 10019
Leon D Black 10 percent owner APOLLO ADVISORS LP, 1301 AVENOE OF THE AMERICAS, NEW YORK NY 10019
Richard S Ressler other: See Remarks C/O J2 GLOBAL COMMUNICATIONS, INC., 6922 HOLLYWOOD BLVD, 5TH FLOOR, LOS ANGELES CA 90028
Peter D. Bloch director 483 BAY STREET, N105, TORONTO A6 M5G2C9
Elbert O Hand director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143

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