Volcano (FRA:VQY) ROE % : -10.73% (As of Sep. 2014)

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What is Volcano ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Volcano's annualized net income for the quarter that ended in Sep. 2014 was €-24.8 Mil. Volcano's average Total Stockholders Equity over the quarter that ended in Sep. 2014 was €231.5 Mil. Therefore, Volcano's annualized ROE % for the quarter that ended in Sep. 2014 was -10.73%.

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

FRA:VQY's ROE % is not ranked ^*
in the Medical Devices & Instruments industry.
Industry Median: -0.27
* Ranked among companies with meaningful ROE % only.

Volcano ROE % Historical Data

The historical data trend for Volcano'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.

Volcano ROE % Chart

Volcano Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROE %

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-12.52

2.23

12.45

2.15

-9.50

Volcano Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
ROE %	Get a 7-Day Free Trial															-8.13	-22.66	-14.40	0.37	-10.73

Competitive Comparison of Volcano's ROE %

For the Medical Devices subindustry, Volcano'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.

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

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

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

Volcano ROE % Calculation

Volcano's annualized ROE % for the fiscal year that ended in Dec. 2013 is calculated as

ROE %	=	Net Income (A: Dec. 2013 )	/	( (Total Stockholders Equity (A: Dec. 2012 )	+	Total Stockholders Equity (A: Dec. 2013 ))	/ count )
	=	-25.181	/	( (311.159	+	218.855)	/ 2 )
	=	-25.181	/	265.007
	=	-9.50 %

Volcano's annualized ROE % for the quarter that ended in Sep. 2014 is calculated as

ROE %	=	Net Income (Q: Sep. 2014 )	/	( (Total Stockholders Equity (Q: Jun. 2014 )	+	Total Stockholders Equity (Q: Sep. 2014 ))	/ count )
	=	-24.832	/	( (226.052	+	236.896)	/ 2 )
	=	-24.832	/	231.474
	=	-10.73 %

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

Volcano (FRA:VQY) 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. 2014 )
=	Net Income	/	Total Stockholders Equity
=	-24.832	/	231.474
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-24.832 / 302.508)	*	(302.508 / 659.685)	*	(659.685 / 231.474)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-8.21 %	*	0.4586	*	2.8499
=	ROA %	*	Equity Multiplier
=	-3.77 %	*	2.8499
=	-10.73 %

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. 2014 )
=	Net Income	/	Total Stockholders Equity
=	-24.832	/	231.474
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-24.832 / -37.156)	*	(-37.156 / -15.252)	*	(-15.252 / 302.508)	*	(302.508 / 659.685)	*	(659.685 / 231.474)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.6683	*	2.4361	*	-5.04 %	*	0.4586	*	2.8499
=	-10.73 %

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

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.

Volcano ROE % Related Terms

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Volcano (FRA:VQY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Volcano Corp (FRA:VQY) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.volcanocorp.com

Volcano Corp incorporated in the state of Delaware in January 2000. The Company completed its initial public offering on June 15, 2006. The Company designs, develops, manufactures and commercializes a broad suite of precision guided therapy tools including intravascular ultrasound, or IVUS, and fractional flow reserve, or FFR, products. The IVUS products include single-procedure disposable phased array and rotational IVUS imaging catheters, and additional functionality options such as ChromaFlo stent apposition analysis. FFR offerings can be accessed through its multi-modality platforms, and it also provide FFR-only consoles. Its products include: IVUS Products, Catheters, its single-use disposable catheters operate and interface solely with its family of consoles. Catheters, its single-use disposable catheters operate and interface solely with its family of consoles. ChromaFlo stent apposition analysis technology uses sequential IVUS frames to differentiate circulating blood from stationary or anchored tissue. SyncVision, Sync-Rx Ltd, or Sync-Rx, an Israel-based company that develops advanced software applications designed to optimize and facilitate trans-catheter cardiovascular interventions using automated online image processing. FFR products consist of pressure and flow consoles and single-procedure disposable pressure and flow guide wires. The Company's primary imaging competitors globally are Boston Scientific, Inc., or Boston Scientific, with its IVUS offering and St. Jude Medical, Inc., or St. Jude with its OCT offering. In Japan, it also competes with Terumo Corporation, which offers both IVUS and OCT. In the FFR market, its primary competitor is St. Jude. Because of the size of the vascular market opportunities, competitors and potential competitors have dedicated and will continue to dedicate significant resources to aggressively promote their products. It has registered and common law trademarks in the U.S. and elsewhere in the world including, but not limited to, Aim, Axsun, Bi-Trieval, Centriq, ChromaFlo, ComboMap, ComboWire, Core, Crux, Crux Biomedical, Define, Eagle Eye, ETNA, FACT, FloMap, FloWire, Ginko, GlyDx, Hi-Q, iFR, In-Line Digital, Instant Wave-Free Ratio, Intentio, Octave, pcFM, Precision Guided Therapy, PreView, PrimeWire, PrimeWire Prestige, ReFlow, Revolution, SlyDx, s5i, SmartMap, SpinVision, Sync-Rx, Trak Back, Valet, Verrata, VH, VIBE, Virtual Histology, Visions, Volcano, Wavewire, Xtract and Zuum. The Company's medical device products are subject to extensive and rigorous regulation by the FDA, as well as other federal and state regulatory bodies in the U.S. and comparable authorities in other countries.

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