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Quantenna Communications (Quantenna Communications) ROE % : -2.11% (As of Mar. 2019)


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What is Quantenna Communications ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Quantenna Communications's annualized net income for the quarter that ended in Mar. 2019 was $-4.4 Mil. Quantenna Communications's average Total Stockholders Equity over the quarter that ended in Mar. 2019 was $209.3 Mil. Therefore, Quantenna Communications's annualized ROE % for the quarter that ended in Mar. 2019 was -2.11%.

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

QTNA's ROE % is not ranked *
in the Semiconductors industry.
Industry Median: 4.425
* Ranked among companies with meaningful ROE % only.

Quantenna Communications ROE % Historical Data

The historical data trend for Quantenna Communications'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.

Quantenna Communications ROE % Chart

Quantenna Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
- - - 22.25 1.59

Quantenna Communications Quarterly Data
Dec14 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 -7.15 2.21 7.96 2.80 -2.11

Competitive Comparison of Quantenna Communications's ROE %

For the Semiconductors subindustry, Quantenna Communications'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.


Quantenna Communications's ROE % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Quantenna Communications's ROE % distribution charts can be found below:

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



Quantenna Communications ROE % Calculation

Quantenna Communications's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=3.083/( (180.603+206.487)/ 2 )
=3.083/193.545
=1.59 %

Quantenna Communications's annualized ROE % for the quarter that ended in Mar. 2019 is calculated as

ROE %=Net Income (Q: Mar. 2019 )/( (Total Stockholders Equity (Q: Dec. 2018 )+Total Stockholders Equity (Q: Mar. 2019 ))/ count )
=-4.42/( (206.487+212.162)/ 2 )
=-4.42/209.3245
=-2.11 %

* 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. 2019) net income data. ROE % is displayed in the 30-year financial page.


Quantenna Communications  (NAS:QTNA) 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. 2019 )
=Net Income/Total Stockholders Equity
=-4.42/209.3245
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.42 / 230.712)*(230.712 / 251.8075)*(251.8075 / 209.3245)
=Net Margin %*Asset Turnover*Equity Multiplier
=-1.92 %*0.9162*1.203
=ROA %*Equity Multiplier
=-1.76 %*1.203
=-2.11 %

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. 2019 )
=Net Income/Total Stockholders Equity
=-4.42/209.3245
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-4.42 / -9.944) * (-9.944 / -12.732) * (-12.732 / 230.712) * (230.712 / 251.8075) * (251.8075 / 209.3245)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.4445 * 0.781 * -5.52 % * 0.9162 * 1.203
=-2.11 %

Note: The net income data used here is four times the quarterly (Mar. 2019) net income data. The Revenue data used here is four times the quarterly (Mar. 2019) 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.


Quantenna Communications ROE % Related Terms

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


Quantenna Communications (Quantenna Communications) Business Description

Traded in Other Exchanges
N/A
Address
1704 Automation Parkway, San Jose, CA, USA, 95131
Quantenna Communications Inc is engaged in the design, development, and marketing of high-speed wireless communication solutions enabling wireless local area networking. Its solutions are designed to deliver Wi-Fi performance to support an increasing number of connected devices accessing a rapidly growing pool of digital content. Its products include QSR10G-AX, QSR2000C, QSR1000, QHS710 and MAUI. The Company sells its solutions using a combination of a direct sales force and third-party distributors.
Executives
Glenda Dorchak director C/O MELLANOX TECHNOLOGIES, INC., 350 OAKMEAD PARKWAY, SUITE 100, SUNNYVALE CA 94085
Mark A Stevens director 2788 SAN TOMAS EXPRESSWAY, SANTA CLARA CA 95051
Harold Hughes director C/O RAMBUS INC., 1050 ENTERPRISE WAY, SUITE 700, SUNNYVALE CA 94089
Jack R Lazar director 400 W. CESAR CHAVEZ, ATTN: STOCK ADMINISTRATION, AUSTIN TX 78701
Edward H. Frank director C/O FUSION-IO, INC., 2855 E. COTTONWOOD PARKWAY, SUITE 100, SALT LAKE CITY UT 84121
Lionel Bonnot officer: SVP Mktg & Business Dev. 3450 W. WARREN AVENUE, FREMONT CA 94538
Sequoia Capital U.s. Growth Fund V, L.p. 10 percent owner 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Scgf V Management, L.p. 10 percent owner 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sc Us Gf V Holdings, Ltd. 10 percent owner 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sequoia Capital Usgf Principals Fund V, L.p. 10 percent owner 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Michael J Moritz 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sc Us (ttgp), Ltd. 10 percent owner 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Douglas M Leone 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sc Xi Management Llc 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sequoia Capital Xi Principals Fund 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025

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