GURUFOCUS.COM » STOCK LIST » USA » NAS » Telesat Corp (NAS:TSAT) » Definitions » ROE %
Switch to:

Telesat ROE %

: 11.04% (As of Dec. 2021)
View and export this data going back to 2021. Start your Free Trial

ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Telesat's annualized net income attributable to common stockholders for the quarter that ended in Dec. 2021 was $80.9 Mil. Telesat's average Total Stockholders Equity over the quarter that ended in Dec. 2021 was $732.6 Mil. Therefore, Telesat's annualized ROE % for the quarter that ended in Dec. 2021 was 11.04%.

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

TSAT' s ROE % Range Over the Past 10 Years
Min: 11.04   Med: 13.93   Max: 16.82
Current: 11.04

During the past 3 years, Telesat's highest ROE % was 16.82%. The lowest was 11.04%. And the median was 13.93%.

TSAT's ROE % is ranked better than
62.92% of 2325 companies
in the Hardware industry
Industry Median: 7.37 vs TSAT: 11.04

Telesat ROE % Historical Data

The historical data trend for Telesat'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.

Telesat Annual Data
Trend Dec19 Dec20 Dec21
ROE %
- 16.82 11.04

Telesat Semi-Annual Data
Dec19 Dec20 Dec21
ROE % - 16.82 11.04

Competitive Comparison

For the Communication Equipment subindustry, Telesat'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.

   

Telesat ROE % Distribution

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

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



Telesat ROE % Calculation

Telesat's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=80.8921875/( (1139.7735966898+325.409375)/ 2 )
=80.8921875/732.59148584491
=11.04 %

Telesat's annualized ROE % for the quarter that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Dec. 2021 )/( (Total Stockholders Equity (Q: Dec. 2020 )+Total Stockholders Equity (Q: Dec. 2021 ))/ count )
=80.8921875/( (1139.7735966898+325.409375)/ 2 )
=80.8921875/732.59148584491
=11.04 %

* 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 attributable to common stockholders 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 attributable to common stockholders data used here is one times the annual (Dec. 2021) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Telesat  (NAS:TSAT) 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: Dec. 2021 )
=Net Income/Total Stockholders Equity
=80.8921875/732.59148584491
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(80.8921875 / 592.353125)*(592.353125 / 4665.3236253867)*(4665.3236253867 / 732.59148584491)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.66 %*0.127*6.3682
=ROA %*Equity Multiplier
=1.73 %*6.3682
=11.04 %

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: Dec. 2021 )
=Net Income/Total Stockholders Equity
=80.8921875/732.59148584491
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (80.8921875 / 184.48359375) * (184.48359375 / 322.428125) * (322.428125 / 592.353125) * (592.353125 / 4665.3236253867) * (4665.3236253867 / 732.59148584491)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.4385 * 0.5722 * 54.43 % * 0.127 * 6.3682
=11.04 %

Note: The net income attributable to common stockholders data used here is one times the annual (Dec. 2021) net income attributable to common stockholders data. The Revenue data used here is one times the annual (Dec. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders 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.


Telesat ROE % Related Terms

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


Telesat Business Description

Telesat logo
Traded in Other Exchanges
Address
160 Elgin Street, Ottawa, ON, CAN, K2P 2P7
Telesat Corp is a global satellite operator, providing its customers with mission-critical communications services. The company's segment includes Broadcast; Enterprise and Consulting and other. It generates maximum revenue from the Broadcast segment. The Broadcast segment includes Direct-to-home television, video distribution and contribution, and occasional use services. Geographically, it derives a majority of revenue from Canada.
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)