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A V Homes (A V Homes) ROE % : 2.79% (As of Jun. 2018)


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What is A V Homes ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. A V Homes's annualized net income for the quarter that ended in Jun. 2018 was $12.0 Mil. A V Homes's average Total Stockholders Equity over the quarter that ended in Jun. 2018 was $430.4 Mil. Therefore, A V Homes's annualized ROE % for the quarter that ended in Jun. 2018 was 2.79%.

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

AVHI's ROE % is not ranked *
in the Homebuilding & Construction industry.
Industry Median: 9.665
* Ranked among companies with meaningful ROE % only.

A V Homes ROE % Historical Data

The historical data trend for A V Homes'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.

A V Homes ROE % Chart

A V Homes Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.19 -0.67 4.06 39.10 -4.97

A V Homes Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
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 0.57 -1.30 -21.24 -2.18 2.79

Competitive Comparison of A V Homes's ROE %

For the Residential Construction subindustry, A V Homes'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.


A V Homes's ROE % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, A V Homes's ROE % distribution charts can be found below:

* The bar in red indicates where A V Homes's ROE % falls into.



A V Homes ROE % Calculation

A V Homes's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=-21.936/( (450.807+431.97)/ 2 )
=-21.936/441.3885
=-4.97 %

A V Homes's annualized ROE % for the quarter that ended in Jun. 2018 is calculated as

ROE %=Net Income (Q: Jun. 2018 )/( (Total Stockholders Equity (Q: Mar. 2018 )+Total Stockholders Equity (Q: Jun. 2018 ))/ count )
=11.996/( (428.497+432.294)/ 2 )
=11.996/430.3955
=2.79 %

* 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 (Jun. 2018) net income data. ROE % is displayed in the 30-year financial page.


A V Homes  (NAS:AVHI) 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: Jun. 2018 )
=Net Income/Total Stockholders Equity
=11.996/430.3955
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(11.996 / 814.24)*(814.24 / 1020.968)*(1020.968 / 430.3955)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.47 %*0.7975*2.3722
=ROA %*Equity Multiplier
=1.17 %*2.3722
=2.79 %

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: Jun. 2018 )
=Net Income/Total Stockholders Equity
=11.996/430.3955
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (11.996 / 16.172) * (16.172 / 25.896) * (25.896 / 814.24) * (814.24 / 1020.968) * (1020.968 / 430.3955)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7418 * 0.6245 * 3.18 % * 0.7975 * 2.3722
=2.79 %

Note: The net income data used here is four times the quarterly (Jun. 2018) net income data. The Revenue data used here is four times the quarterly (Jun. 2018) 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.


A V Homes ROE % Related Terms

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


A V Homes (A V Homes) Business Description

Traded in Other Exchanges
N/A
Address
A V Homes Inc is engaged in the business of homebuilding, community development in Florida, Arizona, and Carolinas. It also engaged in the sale of land for third party development. Firm derives the majority of its revenue from the Florida. The group has built over 7,500 homes nationwide and it has been the recipient of numerous awards for planning and homebuilding accomplishments.
Executives
David Bonderman other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
James G Coulter other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Roger A Cregg director, officer: President and CEO 100 BLOOMFIELD HILL PARKWAY, STE 300, BLOOMFIELD HILLS MI 48304
Tpg Advisors Vi, Inc. other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Jonathan Pertchik director C/O TRAVELCENTERS OF AMERICA INC., 24601 CENTER RIDGE ROAD, WESTLAKE OH 44145
Matthew Coleman director 8601 NORTH SCOTTSDALE ROAD, SUITE 225, SCOTTSDALE AZ 85253
Reuben S Leibowitz director 466 LEXINGTON AVENUE 10TH FL, NEW YORK NY 10017
Dave Gomez officer: EVP, GC and Secretary 7970 SOUTH KYRENE RD., TEMPE AZ 85284
Paul Hackwell director 301 COMMERCE STREET, SUITE 300, FORT WORTH TX 76102
Kelvin L. Davis director 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Greg Kranias director C/O TPG CAPITAL, L.P., 301 COMMERCE ST, SUITE 3300, FORT WORTH TX 76102
Beth Stewart director C/O GENERAL GROWTH PROPERTIES INC, 110 NORTH WACKER DRIVE, CHICAGO IL 60606
Milton H Dresner director C/O HIGHLAND COMPANIES, 28777 NORTHWESTERN HIGHWAY, SOUTHFIELD MI 48034
Michael P Rama officer: Controller C/O AVATAR HOLDINGS INC, 201 ALHAMBRA CIRCLE 12TH FLOOR, CORAL GABLES FL 33134
William G Spears director 45 ROCKEFELLER PLZ STE 1709, SPEARS GRISANTI & BROWN, NEW YORK NY 10111