GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » J. Alexander's Holdings Inc (NYSE:JAX) » Definitions » ROE %

J. Alexander's Holdings (J. Alexander's Holdings) ROE % : 7.93% (As of Jun. 2021)


View and export this data going back to 2015. Start your Free Trial

What is J. Alexander's Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. J. Alexander's Holdings's annualized net income for the quarter that ended in Jun. 2021 was $9.0 Mil. J. Alexander's Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2021 was $113.7 Mil. Therefore, J. Alexander's Holdings's annualized ROE % for the quarter that ended in Jun. 2021 was 7.93%.

The historical rank and industry rank for J. Alexander's Holdings's ROE % or its related term are showing as below:

JAX's ROE % is not ranked *
in the Restaurants industry.
Industry Median: 8.345
* Ranked among companies with meaningful ROE % only.

J. Alexander's Holdings ROE % Historical Data

The historical data trend for J. Alexander's Holdings'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.

J. Alexander's Holdings ROE % Chart

J. Alexander's Holdings Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Get a 7-Day Free Trial 7.11 7.01 3.59 7.26 -18.91

J. Alexander's Holdings Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -25.71 -6.72 14.75 12.28 7.93

Competitive Comparison of J. Alexander's Holdings's ROE %

For the Restaurants subindustry, J. Alexander's Holdings'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.


J. Alexander's Holdings's ROE % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, J. Alexander's Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where J. Alexander's Holdings's ROE % falls into.



J. Alexander's Holdings ROE % Calculation

J. Alexander's Holdings's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=-22.471/( (129.159+108.547)/ 2 )
=-22.471/118.853
=-18.91 %

J. Alexander's Holdings's annualized ROE % for the quarter that ended in Jun. 2021 is calculated as

ROE %=Net Income (Q: Jun. 2021 )/( (Total Stockholders Equity (Q: Mar. 2021 )+Total Stockholders Equity (Q: Jun. 2021 ))/ count )
=9.012/( (112.349+115.02)/ 2 )
=9.012/113.6845
=7.93 %

* 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. 2021) net income data. ROE % is displayed in the 30-year financial page.


J. Alexander's Holdings  (NYSE:JAX) 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. 2021 )
=Net Income/Total Stockholders Equity
=9.012/113.6845
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(9.012 / 272.404)*(272.404 / 244.5465)*(244.5465 / 113.6845)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.31 %*1.1139*2.1511
=ROA %*Equity Multiplier
=3.69 %*2.1511
=7.93 %

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. 2021 )
=Net Income/Total Stockholders Equity
=9.012/113.6845
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (9.012 / 8.928) * (8.928 / 16.704) * (16.704 / 272.404) * (272.404 / 244.5465) * (244.5465 / 113.6845)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0094 * 0.5345 * 6.13 % * 1.1139 * 2.1511
=7.93 %

Note: The net income data used here is four times the quarterly (Jun. 2021) net income data. The Revenue data used here is four times the quarterly (Jun. 2021) 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.


J. Alexander's Holdings ROE % Related Terms

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


J. Alexander's Holdings (J. Alexander's Holdings) Business Description

Traded in Other Exchanges
N/A
Address
3401 West End Avenue, Suite 260, P.O. Box 24300, Nashville, TN, USA, 37202
J. Alexander's Holdings Inc is an American restaurant operator. Its portfolio of properties consists of casual, stand-alone dining places in the United States, under trademarks such as Alexander's Restaurant, Black River Angus Beef, Black River Premium Beef, Legendary Steaks, Stoney River, Stoney River Legendary Steaks, and Stoney River Legendary Filet. Its restaurants are characterized by a trade name, different concepts, diverse architecture and authentic American meals.
Executives
Stout Lonnie J Ii director, officer: Executive Chairman 3401 WEST END AVENUE, SUITE 260 NASHVILLE TN 37202
Frank R Martire director CANNAE HOLDING, INC., 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Raymond R Quirk director 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Douglas K Ammerman director 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Ronald B Maggard director 10370 HEMET ST STE 240 RIVERSIDE CA 92503
J Michael Moore officer: EVP and COO PO BOX 24300 NASVILLE TN 37202
Timothy Janszen director 21 WATERWAY AVE SUITE 150 THE WOODLANDS TX 77380
Jessica Leigh Hagler officer: VP, CFO, Treasurer & Secretary 3401 WEST END AVENUE, SUITE #260 NASHVILLE TN 37203
Jason Scott Parks officer: VP & CIO 3401 WEST END AVE SUITE 260 NASHVILLE TN 37203
Trebia Acquisition Corp. other: No Relationship 41 MADISON AVENUE SUITE 2020 NEW YORK NY 10010
Carl J. Grassi director 3401 WEST END AVENUE, SUITE 260 NASHVILLE TN 37203
Mark A Parkey officer: President and CEO P.O. BOX 24300 NASHVILLE TN 37202
Newport Global Opportunities Fund Aiv-a Lp 10 percent owner 21 WATERWAY AVENUE, SUITE 150 THE WOODLANDS TX 77380
Newport Global Opportunities Fund I-a Lp 10 percent owner 21 WATERWAY AVENUE, SUITE 150 THE WOODLANDS TX 77380