ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Dragon Oil's annualized net income for the quarter that ended in Jun. 2015 was €247.7 Mil. Dragon Oil's average Total Stockholders Equity over the quarter that ended in Jun. 2015 was €3,187.2 Mil. Therefore, Dragon Oil's annualized ROE % for the quarter that ended in Jun. 2015 was 7.77%.
The historical rank and industry rank for Dragon Oil's ROE % or its related term are showing as below:
FRA:DRS'
s ROE % Range Over the Past 10 Years
Min: 13.74 Med: 23.46 Max: 33.49
Current: 13.74
During the past 13 years, Dragon Oil's highest ROE % was 33.49%. The lowest was 13.74%. And the median was 23.46%.
FRA:DRS's ROE % is not ranked
in the Oil & Gas industry.
Industry Median: 7.73
vs FRA:DRS: 13.74
Dragon Oil ROE % Historical Data
The historical data trend for Dragon Oil'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 Oil & Gas E&P subindustry, Dragon Oil'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.
Dragon Oil's ROE % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Dragon Oil's ROE % distribution charts can be found below:
* The bar in red indicates where Dragon Oil's ROE % falls into.
Dragon Oil ROE % Calculation
Dragon Oil's annualized ROE % for the fiscal year that ended in Dec. 2014 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 two times the semi-annual (Jun. 2015) net income data.
ROE % is displayed in the 30-year financial page.
Dragon Oil (FRA:DRS) 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 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.
* 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.
Dragon Oil ROE % Related Terms
Thank you for viewing the detailed overview of Dragon Oil's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Dragon Oil PLC is an independent oil and gas exploration, development and production company. The Company's producing asset is the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. It has exploration blocks offshore Tunisia (the Bargou Exploration Permit), in Iraq (Block 9), Afghanistan (Sanduqli and Mazar-i-Sharif blocks), offshore the Philippines (Service Contract 63) in partnership with other companies and Block 19 in Egypt. The Company develops the hydrocarbon reserves in the Cheleken Contract Area in accordance with the terms of the Production Sharing Agreement (PSA). As at 31 December 2014 the Company had probably oil reserves of 663 million barrels of oil and condensate, gas 2P reserves and contingent gas resources of c. 2.7 TCF. The Bargou Exploration Permit contains prospective resources, while Block 9, Sanduqli and Mazar-i-Sharif blocks and Block 19 are at an early stage of exploration. The Company is subject to the international laws and regulations that it operates in.
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