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Savanna Energy Services (TSX:SVY) ROE % : -17.17% (As of Mar. 2017)


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What is Savanna Energy Services ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Savanna Energy Services's annualized net income for the quarter that ended in Mar. 2017 was C$-79.0 Mil. Savanna Energy Services's average Total Stockholders Equity over the quarter that ended in Mar. 2017 was C$460.4 Mil. Therefore, Savanna Energy Services's annualized ROE % for the quarter that ended in Mar. 2017 was -17.17%.

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

TSX:SVY's ROE % is not ranked *
in the Oil & Gas industry.
Industry Median: 6.595
* Ranked among companies with meaningful ROE % only.

Savanna Energy Services ROE % Historical Data

The historical data trend for Savanna Energy Services'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.

Savanna Energy Services ROE % Chart

Savanna Energy Services Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.40 3.43 -32.60 -30.41 -11.64

Savanna Energy Services Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 -8.33 -13.80 -9.79 -16.42 -17.17

Competitive Comparison of Savanna Energy Services's ROE %

For the Oil & Gas Drilling subindustry, Savanna Energy Services'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.


Savanna Energy Services's ROE % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Savanna Energy Services's ROE % distribution charts can be found below:

* The bar in red indicates where Savanna Energy Services's ROE % falls into.



Savanna Energy Services ROE % Calculation

Savanna Energy Services's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=-56.004/( (493.199+469.195)/ 2 )
=-56.004/481.197
=-11.64 %

Savanna Energy Services's annualized ROE % for the quarter that ended in Mar. 2017 is calculated as

ROE %=Net Income (Q: Mar. 2017 )/( (Total Stockholders Equity (Q: Dec. 2016 )+Total Stockholders Equity (Q: Mar. 2017 ))/ count )
=-79.048/( (469.195+451.521)/ 2 )
=-79.048/460.358
=-17.17 %

* 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 (Mar. 2017) net income data. ROE % is displayed in the 30-year financial page.


Savanna Energy Services  (TSX:SVY) 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: Mar. 2017 )
=Net Income/Total Stockholders Equity
=-79.048/460.358
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-79.048 / 469.276)*(469.276 / 818.472)*(818.472 / 460.358)
=Net Margin %*Asset Turnover*Equity Multiplier
=-16.84 %*0.5734*1.7779
=ROA %*Equity Multiplier
=-9.66 %*1.7779
=-17.17 %

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: Mar. 2017 )
=Net Income/Total Stockholders Equity
=-79.048/460.358
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-79.048 / -108.064) * (-108.064 / -57.244) * (-57.244 / 469.276) * (469.276 / 818.472) * (818.472 / 460.358)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7315 * 1.8878 * -12.2 % * 0.5734 * 1.7779
=-17.17 %

Note: The net income data used here is four times the quarterly (Mar. 2017) net income data. The Revenue data used here is four times the quarterly (Mar. 2017) 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.


Savanna Energy Services ROE % Related Terms

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Savanna Energy Services (TSX:SVY) Business Description

Traded in Other Exchanges
N/A
Address
Savanna Energy Services Corp was incorporated under the Alberta Business Corporations Act on March 22, 2001. It is a drilling, well servicing and oilfield rentals company with operations in Canada, the United States and Australia. It provides a variety of services in the oil and natural gas industry. The corporate segment provides management and administrative services to all of the Company's subsidiaries and their respective operations. The services segment provides well servicing services and rental equipment to the oil and gas industry. The drilling segment provides contract drilling services to the oil and gas industry. The Company's overall business is conducted through two divisions: contract drilling and oilfield services. The Company's equipment fleet is among the newest and technically in the industry and its commitment to talent and technology has enabled the Company to build a presence within the oilfield services sector. It has also expanded its customer base to international markets, diversifying geographically into growing and emerging markets. The Company operates through a number of wholly-owned subsidiaries and several partnerships with Aboriginal communities that are partially owned by the Company.

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