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Community West Bancshares (Community West Bancshares) ROE % : 12.13% (As of Dec. 2023)


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What is Community West Bancshares ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Community West Bancshares's annualized net income for the quarter that ended in Dec. 2023 was $23.58 Mil. Community West Bancshares's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $194.36 Mil. Therefore, Community West Bancshares's annualized ROE % for the quarter that ended in Dec. 2023 was 12.13%.

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

CWBC' s ROE % Range Over the Past 10 Years
Min: 4.22   Med: 9.75   Max: 13.38
Current: 11.47

During the past 13 years, Community West Bancshares's highest ROE % was 13.38%. The lowest was 4.22%. And the median was 9.75%.

CWBC's ROE % is ranked better than
60% of 1460 companies
in the Banks industry
Industry Median: 9.88 vs CWBC: 11.47

Community West Bancshares ROE % Historical Data

The historical data trend for Community West Bancshares'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.

Community West Bancshares ROE % Chart

Community West Bancshares Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.58 8.60 11.52 12.61 13.38

Community West Bancshares Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 15.63 13.60 13.85 12.13 7.02

Competitive Comparison of Community West Bancshares's ROE %

For the Banks - Regional subindustry, Community West Bancshares'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.


Community West Bancshares's ROE % Distribution in the Banks Industry

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

* The bar in red indicates where Community West Bancshares's ROE % falls into.



Community West Bancshares ROE % Calculation

Community West Bancshares's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=25.536/( (174.66+207.064)/ 2 )
=25.536/190.862
=13.38 %

Community West Bancshares's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=23.576/( (181.65+207.064)/ 2 )
=23.576/194.357
=12.13 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Community West Bancshares  (NAS:CWBC) 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. 2023 )
=Net Income/Total Stockholders Equity
=23.576/194.357
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(23.576 / 88.04)*(88.04 / 2434.3925)*(2434.3925 / 194.357)
=Net Margin %*Asset Turnover*Equity Multiplier
=26.78 %*0.0362*12.5254
=ROA %*Equity Multiplier
=0.97 %*12.5254
=12.13 %

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. 2023 )
=Net Income/Total Stockholders Equity
=23.576/194.357
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (23.576 / 30.788) * (30.788 / 88.04) * (88.04 / 2434.3925) * (2434.3925 / 194.357)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7658 * 34.97 % * 0.0362 * 12.5254
=12.13 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


Community West Bancshares ROE % Related Terms

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


Community West Bancshares (Community West Bancshares) Business Description

Traded in Other Exchanges
N/A
Address
7100 N. Financial Drive, Suite 101, Fresno, CA, USA, 93720
Central Valley Community Bancorp offers a full range of commercial banking services to small and medium size businesses, their owners, managers, and employees in the central valley area of California. It conducts a commercial banking business, which includes accepting demand, savings and time deposits and making commercial, real estate, and consumer loans. The company also provides domestic and international wire transfer services and provides safe deposit boxes and other customary banking services. It is also engaged in internet banking which consists of inquiry, account status, bill paying, account transfers, and cash management.
Executives
Dawn M Cagle officer: EXECUTIVE VICE PRESIDENT 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
Jeffrey Michael Martin officer: EXECUTIVE VICE PRESIDENT 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
Shannon R Avrett officer: EXECUTIVE VICE PRESIDENT 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
James J Kim officer: EXECUTIVE VICE PRESIDENT 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
Daniel J Doyle director, officer: PRESIDENT & CEO 10335 N. ARCHIE, FRESNO CA 93720
Andriana D Majarian director 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
Blaine Lauhon officer: EXECUTIVE VICE PRESIDENT 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
Patrick A Luis officer: EXECUTIVE VICE PRESIDENT 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
Louis C Mcmurray director, 10 percent owner 2520 NORTH ARGYLE, FRESNO CA 93727
Daniel N Cunningham director 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
Anthony Kenneth Ramos officer: EXECUTIVE VICE PRESIDENT 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
Teresa Gilio officer: EXECUTIVE VICE PRESIDENT 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
Dawn P Crusinberry officer: EXECUTIVE VICE PRESIDENT 7100 N. FINANCIAL DRIVE, SUITE 101, FRESNO CA 93720
David A Kinross officer: Executive Vice President 600 POLLASKY AVENUE, CLOVIS CA 93612
Robert J Flautt director 905 SUTTER ST #100, FOLSOM CA 95630