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Kemet (KEM) ROE % : -0.18% (As of Mar. 2020)


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What is Kemet ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kemet's annualized net income for the quarter that ended in Mar. 2020 was $-1 Mil. Kemet's average Total Stockholders Equity over the quarter that ended in Mar. 2020 was $667 Mil. Therefore, Kemet's annualized ROE % for the quarter that ended in Mar. 2020 was -0.18%.

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

KEM's ROE % is not ranked *
in the Hardware industry.
Industry Median: 4.75
* Ranked among companies with meaningful ROE % only.

Kemet ROE % Historical Data

The historical data trend for Kemet'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.

Kemet ROE % Chart

Kemet Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -38.70 35.33 82.20 37.45 6.43

Kemet Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
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 63.45 24.52 -9.19 9.92 -0.18

Competitive Comparison of Kemet's ROE %

For the Electronic Components subindustry, Kemet'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.


Kemet's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Kemet's ROE % distribution charts can be found below:

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



Kemet ROE % Calculation

Kemet's annualized ROE % for the fiscal year that ended in Mar. 2020 is calculated as

ROE %=Net Income (A: Mar. 2020 )/( (Total Stockholders Equity (A: Mar. 2019 )+Total Stockholders Equity (A: Mar. 2020 ))/ count )
=41.381/( (639.415+647.262)/ 2 )
=41.381/643.3385
=6.43 %

Kemet's annualized ROE % for the quarter that ended in Mar. 2020 is calculated as

ROE %=Net Income (Q: Mar. 2020 )/( (Total Stockholders Equity (Q: Dec. 2019 )+Total Stockholders Equity (Q: Mar. 2020 ))/ count )
=-1.204/( (687.313+647.262)/ 2 )
=-1.204/667.2875
=-0.18 %

* 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. 2020) net income data. ROE % is displayed in the 30-year financial page.


Kemet  (NYSE:KEM) 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. 2020 )
=Net Income/Total Stockholders Equity
=-1.204/667.2875
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1.204 / 1172.696)*(1172.696 / 1402.7145)*(1402.7145 / 667.2875)
=Net Margin %*Asset Turnover*Equity Multiplier
=-0.1 %*0.836*2.1021
=ROA %*Equity Multiplier
=-0.08 %*2.1021
=-0.18 %

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. 2020 )
=Net Income/Total Stockholders Equity
=-1.204/667.2875
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1.204 / 57.648) * (57.648 / 121.384) * (121.384 / 1172.696) * (1172.696 / 1402.7145) * (1402.7145 / 667.2875)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -0.0209 * 0.4749 * 10.35 % * 0.836 * 2.1021
=-0.18 %

Note: The net income data used here is four times the quarterly (Mar. 2020) net income data. The Revenue data used here is four times the quarterly (Mar. 2020) 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.


Kemet ROE % Related Terms

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


Kemet (KEM) Business Description

Traded in Other Exchanges
N/A
Address
One East Broward Boulevard, KEMET Tower, Fort Lauderdale, FL, USA, 33301
Kemet Corp together with its subsidiaries manufactures and sells passive electronic components under the KEMET brand worldwide and the TOKIN brand in Japan and Korea. Its product line consists of multilayer ceramic, tantalum, film, and aluminum (solid and electrolytic) capacitors, and Electro-Magnetic Compatible devices, sensors, and actuators. It serves to original equipment manufacturers, electronics manufacturing services providers, and electronics distributors. It has three reportable segments: Solid Capacitors, Film and Electrolytic, and MSA. A vast majority of its revenue is derived from the Solid Capacitors segment. It serves through four geographic regions: North America and South America, Europe, the Middle East, and Africa, Asia and the Pacific Rim and Japan and Korea.
Executives
Karen M Rogge director APPLIED MICRO CIRCUITS CORP, 4555 GREAT AMERICA PARKWAY, SUITE 601, SANTA CLARA CA 95054
Maddrey E Erwin Ii director 233 N MAIN STREET, SUITE 200, GREENVILLE SC 29601
Gurminder S Bedi director ONE CAMPUS MARTIUS, DETROIT MI 48226
Robert G Paul director 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Gregory C Thompson officer: Executive VP-CFO 1000 ABERNATHY ROAD N.E., STE 1200, ATLANTA GA 30328
Jacob Kotzubei director 360 NORTH CRESCENT DRIVE, BEVERLY HILLS CA 90210
Lowe William M Jr director, officer: CEO P.O. BOX 5928, GREENVILLE SC 29606
Platinum Equity Llc 10 percent owner, other: See Footnote (3)(4)(5) 360 NORTH CRESCENT DRIVE, BEVERLY HILLS CA 90210
Tom Gores 10 percent owner, other: See Footnote (3)(4)(5) C/O PLATINUM EQUITY, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Capital Partners Ii Lp 10 percent owner, other: See Footnote (3)(4)(5) 360 North Crescent Drive, Beverly Hills CA 90210
Joseph D Swann director C/O ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Jeffrey A Graves director, officer: CEO C/O C&D TECHNOLOGIES, INC., 1400 UNION MEETING RD, BLUE BELL PA 19422
William E Bachrach officer: Vice President, Business Devel 11 CABOT BOULEVARD MANSFIELD MA 02048
Citigroup Inc director 388 GREENWICH STREET, NEW YORK NY 10013
Iticorp director 399 PARK AVENUE, NEW YORK NY 10043