Grayson Bankshares (Grayson Bankshares) ROE % : -5.60% (As of Dec. 2011)

View and export this data going back to . Start your Free Trial

What is Grayson Bankshares ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Grayson Bankshares's annualized net income for the quarter that ended in Dec. 2011 was $-1.65 Mil. Grayson Bankshares's average Total Stockholders Equity over the quarter that ended in Dec. 2011 was $29.38 Mil. Therefore, Grayson Bankshares's annualized ROE % for the quarter that ended in Dec. 2011 was -5.60%.

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

GSON's ROE % is not ranked ^*
in the Banks industry.
Industry Median: 9.7
* Ranked among companies with meaningful ROE % only.

Grayson Bankshares ROE % Historical Data

The historical data trend for Grayson Bankshares'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.

Grayson Bankshares ROE % Chart

Grayson Bankshares Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

ROE %

Get a 7-Day Free Trial

10.81

2.54

2.97

3.83

-5.60

Grayson Bankshares Semi-Annual Data
	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11
ROE %	Get a 7-Day Free Trial			10.81	2.54	2.97	3.83	-5.60

Competitive Comparison of Grayson Bankshares's ROE %

For the Banks - Regional subindustry, Grayson Bankshares'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.

Grayson Bankshares's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Grayson Bankshares's ROE % distribution charts can be found below:

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

Grayson Bankshares ROE % Calculation

Grayson Bankshares's annualized ROE % for the fiscal year that ended in Dec. 2011 is calculated as

ROE %	=	Net Income (A: Dec. 2011 )	/	( (Total Stockholders Equity (A: Dec. 2010 )	+	Total Stockholders Equity (A: Dec. 2011 ))	/ count )
	=	-1.646	/	( (30.41	+	28.34)	/ 2 )
	=	-1.646	/	29.375
	=	-5.60 %

Grayson Bankshares's annualized ROE % for the quarter that ended in Dec. 2011 is calculated as

ROE %	=	Net Income (Q: Dec. 2011 )	/	( (Total Stockholders Equity (Q: Dec. 2010 )	+	Total Stockholders Equity (Q: Dec. 2011 ))	/ count )
	=	-1.646	/	( (30.41	+	28.34)	/ 2 )
	=	-1.646	/	29.375
	=	-5.60 %

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 one times the annual (Dec. 2011) net income data. ROE % is displayed in the 30-year financial page.

Grayson Bankshares (OTCPK:GSON) 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. 2011 )
=	Net Income	/	Total Stockholders Equity
=	-1.646	/	29.375
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-1.646 / 13.338)	*	(13.338 / 357.3)	*	(357.3 / 29.375)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-12.34 %	*	0.0373	*	12.1634
=	ROA %	*	Equity Multiplier
=	-0.46 %	*	12.1634
=	-5.60 %

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. 2011 )
=	Net Income	/	Total Stockholders Equity
=	-1.646	/	29.375
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-1.646 / -2.86)	*	(-2.86 / 13.338)	*	(13.338 / 357.3)	*	(357.3 / 29.375)
=	Tax Burden	*	Pretax Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.5755	*	-21.44 %	*	0.0373	*	12.1634
=	-5.60 %

Note: The net income data used here is one times the annual (Dec. 2011) net income data. The Revenue data used here is one times the annual (Dec. 2011) 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.

Grayson Bankshares ROE % Related Terms

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

Grayson Bankshares (Grayson Bankshares) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Grayson Bankshares Inc (OTCPK:GSON) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

Grayson Bankshares, Inc. was incorporated as a Virginia corporation on February 3, 1992. It is a bank holding company for The Grayson National Bank (the Bank). National Bank currently serves Grayson County and surrounding areas through ten banking offices located in the towns of Independence, Hillsville and Wytheville, the localities of Elk Creek, Troutdale and Whitetop, the City of Galax, and Carroll County, Virginia, and the Town of Sparta, North Carolina. The Bank operates for the primary purpose of meeting the banking needs of individuals and small to medium sized businesses in the Bank's service area, while developing personal, hometown associations with these customers. The Bank offers a wide range of banking services including checking and savings accounts; commercial, installment, mortgage and personal loans; credit and debit cards; internet banking and online bill paying; safe deposit boxes; and other associated services. The Bank's primary sources of revenue are interest income from its lending activities, and, to a lesser extent, from its investment portfolio. The Bank also earns fees from lending and deposit activities. The major expenses of the Bank are interest on deposit accounts and general and administrative expenses, such as salaries, occupancy and related expenses. The Bank's lending services include real estate, commercial, agricultural and consumer loans. The Bank invests a portion of its assets in U.S. Treasury, U.S. Government agency and U.S. Government sponsored enterprise securities, state, county and municipal obligations, and equity securities. Deposits are the major source of funds for lending and other investment activities. The Bank considers the majority of its regular savings, demand, NOW and money market deposits and small denomination certificates of deposit to be core deposits. The Company's market area consists primarily of the Counties of Grayson, Carroll and Wythe, and the independent city of Galax, in Virginia, as well as Alleghany County in North Carolina. As a bank holding company, the Company is subject to regulation under the Bank Holding Company Act of 1956 (BHCA) and the examination and reporting requirements of the Federal Reserve.

Grayson Bankshares (Grayson Bankshares) Headlines

No Headlines