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Echelon (Echelon) ROE % : -22.13% (As of Jun. 2018)


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What is Echelon ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Echelon's annualized net income for the quarter that ended in Jun. 2018 was $-4.89 Mil. Echelon's average Total Stockholders Equity over the quarter that ended in Jun. 2018 was $22.09 Mil. Therefore, Echelon's annualized ROE % for the quarter that ended in Jun. 2018 was -22.13%.

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

ELON's ROE % is not ranked *
in the Hardware industry.
Industry Median: 4.525
* Ranked among companies with meaningful ROE % only.

Echelon ROE % Historical Data

The historical data trend for Echelon'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.

Echelon ROE % Chart

Echelon 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 -23.58 -44.18 -36.97 -15.46 -20.08

Echelon 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 -20.13 -15.00 -21.83 -24.93 -22.13

Competitive Comparison of Echelon's ROE %

For the Communication Equipment subindustry, Echelon'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.


Echelon's ROE % Distribution in the Hardware Industry

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

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



Echelon ROE % Calculation

Echelon'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 )
=-4.623/( (24.424+21.633)/ 2 )
=-4.623/23.0285
=-20.08 %

Echelon'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 )
=-4.888/( (22.611+21.573)/ 2 )
=-4.888/22.092
=-22.13 %

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


Echelon  (NAS:ELON) 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
=-4.888/22.092
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.888 / 31.668)*(31.668 / 28.456)*(28.456 / 22.092)
=Net Margin %*Asset Turnover*Equity Multiplier
=-15.44 %*1.1129*1.2881
=ROA %*Equity Multiplier
=-17.18 %*1.2881
=-22.13 %

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: Jun. 2018 )
=Net Income/Total Stockholders Equity
=-4.888/22.092
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-4.888 / -4.768) * (-4.768 / -6.272) * (-6.272 / 31.668) * (31.668 / 28.456) * (28.456 / 22.092)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0252 * 0.7602 * -19.81 % * 1.1129 * 1.2881
=-22.13 %

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.


Echelon ROE % Related Terms

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


Echelon (Echelon) Business Description

Traded in Other Exchanges
N/A
Address
Echelon Corp is an energy control networking company. It develops open-standard control networking platforms for Industrial Internet of Things (IIoT) applications. The company operates in one reporting segment, the IIoT segment. It currently operates in three geographical markets: the Americas; Europe, Middle East and Africa; and Asia Pacific/Japan. The majority of its revenue is derived from the Europe, Middle East, and Africa. It offers two product lines, the first of which is comprised of chips, modules, gateways, and design and management software. The second product line is a range of control networking solutions designed specifically for the lighting market within the IIoT.
Executives
Betsy Rafael director 550 MERIDIAN AVENUE, SAN JOSE CA 95126
Alicia Jayne Moore officer: SVP, Gen. Counsel & Sec 550 MERIDIAN AVENUE, SAN JOSE CA 95126
Robert J Finocchio director C/O ALTERA CORP 101 INNOVATION DRIVE SAN JOSE CA 95134
Ronald Sege director, officer: Chairman, CEO & President 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
William R Slakey officer: Executive VP and CFO
Robyn M Denholm director 4150 NETWORK CIRCLE, SANTA CLARA CA 95054
Larry W Sonsini director 3303 HILLVIEW AVENUE, PALO ALTO CA 94304
Michael E Lehman director
Peter A Mehring officer: Senior VP of Engineering