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magicJack VocalTec (magicJack VocalTec) ROE % : 26.98% (As of Sep. 2018)


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What is magicJack VocalTec ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. magicJack VocalTec's annualized net income for the quarter that ended in Sep. 2018 was $12.74 Mil. magicJack VocalTec's average Total Stockholders Equity over the quarter that ended in Sep. 2018 was $47.22 Mil. Therefore, magicJack VocalTec's annualized ROE % for the quarter that ended in Sep. 2018 was 26.98%.

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

CALL's ROE % is not ranked *
in the Telecommunication Services industry.
Industry Median: 6.98
* Ranked among companies with meaningful ROE % only.

magicJack VocalTec ROE % Historical Data

The historical data trend for magicJack VocalTec'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.

magicJack VocalTec ROE % Chart

magicJack VocalTec 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 1,109.71 8.75 27.93 10.69 -52.33

magicJack VocalTec Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 26.54 -29.31 20.48 38.34 26.98

Competitive Comparison of magicJack VocalTec's ROE %

For the Telecom Services subindustry, magicJack VocalTec'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.


magicJack VocalTec's ROE % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, magicJack VocalTec's ROE % distribution charts can be found below:

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



magicJack VocalTec ROE % Calculation

magicJack VocalTec'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 )
=-24.963/( (58.835+36.562)/ 2 )
=-24.963/47.6985
=-52.33 %

magicJack VocalTec's annualized ROE % for the quarter that ended in Sep. 2018 is calculated as

ROE %=Net Income (Q: Sep. 2018 )/( (Total Stockholders Equity (Q: Jun. 2018 )+Total Stockholders Equity (Q: Sep. 2018 ))/ count )
=12.74/( (45.226+49.211)/ 2 )
=12.74/47.2185
=26.98 %

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


magicJack VocalTec  (NAS:CALL) 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: Sep. 2018 )
=Net Income/Total Stockholders Equity
=12.74/47.2185
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(12.74 / 77.888)*(77.888 / 143.3135)*(143.3135 / 47.2185)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.36 %*0.5435*3.0351
=ROA %*Equity Multiplier
=8.89 %*3.0351
=26.98 %

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: Sep. 2018 )
=Net Income/Total Stockholders Equity
=12.74/47.2185
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (12.74 / 18.272) * (18.272 / 17.428) * (17.428 / 77.888) * (77.888 / 143.3135) * (143.3135 / 47.2185)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6972 * 1.0484 * 22.38 % * 0.5435 * 3.0351
=26.98 %

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


magicJack VocalTec ROE % Related Terms

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magicJack VocalTec (magicJack VocalTec) Business Description

Traded in Other Exchanges
N/A
Address
magicJack VocalTec Ltd is a cloud communications company. It provides VoIP services including magicJack, magicJack Go and MagicJack Plus. The company owns the United States Wireline-based Telecom company in terms of home phone numbers available and certifications. It also owns softphone, session border controller, app server and chip companies. The company also provides Unified Communication as a Service (UCaaS) for medium-to-large multi-location enterprise customers, through its Broadsmart division.
Executives
Alan B Howe director 1155 KAS DRIVE SUITE 100, RICHARDSON TX 75081
B. Riley Financial, Inc. 10 percent owner 11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
B. Riley Securities, Inc. 10 percent owner 11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
Bell Don Carlos Iii director, officer: President and CEO 3713 SOUTHWESTERN BLVD, DALLAS TX 75225
Jose Gordo officer: Chief Financial Officer C/O YMAX CORPORATION, 5700 GEORGIA AVENUE, WEST PALM BEACH FL 33405
Adams Street Partners Llc 10 percent owner ONE NORTH WACKER DRIVE, STE 2700, CHICAGO IL 60606-2807

magicJack VocalTec (magicJack VocalTec) Headlines

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