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CalAtlantic Group (CalAtlantic Group) ROE % : 8.72% (As of Sep. 2017)


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What is CalAtlantic Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. CalAtlantic Group's annualized net income for the quarter that ended in Sep. 2017 was $373 Mil. CalAtlantic Group's average Total Stockholders Equity over the quarter that ended in Sep. 2017 was $4,282 Mil. Therefore, CalAtlantic Group's annualized ROE % for the quarter that ended in Sep. 2017 was 8.72%.

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

CAA's ROE % is not ranked *
in the Homebuilding & Construction industry.
Industry Median: 9.665
* Ranked among companies with meaningful ROE % only.

CalAtlantic Group ROE % Historical Data

The historical data trend for CalAtlantic Group'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.

CalAtlantic Group ROE % Chart

CalAtlantic Group Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 56.55 13.85 13.72 7.71 12.01

CalAtlantic Group Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 12.95 16.01 7.78 9.29 8.72

Competitive Comparison of CalAtlantic Group's ROE %

For the Residential Construction subindustry, CalAtlantic Group'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.


CalAtlantic Group's ROE % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, CalAtlantic Group's ROE % distribution charts can be found below:

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



CalAtlantic Group ROE % Calculation

CalAtlantic Group's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=484.73/( (3861.436+4207.586)/ 2 )
=484.73/4034.511
=12.01 %

CalAtlantic Group's annualized ROE % for the quarter that ended in Sep. 2017 is calculated as

ROE %=Net Income (Q: Sep. 2017 )/( (Total Stockholders Equity (Q: Jun. 2017 )+Total Stockholders Equity (Q: Sep. 2017 ))/ count )
=373.408/( (4235.706+4329.211)/ 2 )
=373.408/4282.4585
=8.72 %

* 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. 2017) net income data. ROE % is displayed in the 30-year financial page.


CalAtlantic Group  (NYSE:CAA) 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. 2017 )
=Net Income/Total Stockholders Equity
=373.408/4282.4585
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(373.408 / 6144.016)*(6144.016 / 8972.915)*(8972.915 / 4282.4585)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.08 %*0.6847*2.0953
=ROA %*Equity Multiplier
=4.16 %*2.0953
=8.72 %

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. 2017 )
=Net Income/Total Stockholders Equity
=373.408/4282.4585
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (373.408 / 584.688) * (584.688 / 619.468) * (619.468 / 6144.016) * (6144.016 / 8972.915) * (8972.915 / 4282.4585)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6386 * 0.9439 * 10.08 % * 0.6847 * 2.0953
=8.72 %

Note: The net income data used here is four times the quarterly (Sep. 2017) net income data. The Revenue data used here is four times the quarterly (Sep. 2017) 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.


CalAtlantic Group ROE % Related Terms

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CalAtlantic Group (CalAtlantic Group) Business Description

Traded in Other Exchanges
N/A
Address
CalAtlantic Group Inc is an American residential construction company that was formed in 2015 as a result of the merger between Ryland Homes and Standard Pacific, two of America's homebuilders. The company mainly constructs single-family housing communities in metropolitan areas across California, Florida, Arizona, the Carolinas, Texas, Colorado, and Nevada. CalAtlantic typically builds luxury single-family homes with average selling prices around $400,000 and completes more than 10,000 homes annually.
Executives
William L Jews director C/O FORTRESS INTERNATIONAL GROUP, INC., 7226 LEE DEFOREST DRIVE, SUITE 203, COLUMBIA, MD 21046
Norman J Metcalfe director 2007 BAYADERE TERRACE, CORONA DEL MAR CA 92625
Douglas C Jacobs director
Wendy L Marlett officer: CMO & EVP Sales & Marketing C/O KB HOME, 10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Robert E Mellor director SEVEN MADRONE AVE, KENTFIELD CA 94904
Scott D Stowell director, officer: Executive Chairman
Jeffrey Joseph Mccall officer: EVP & CFO 26 TECHNOLOGY DRIVE, IRVINE CA 92618
Bruce A Choate director
Matlinpatterson Global Advisers Llc 10 percent owner 70 EAST 55TH ST., 9TH FLOOR, NEW YORK NY 10022
Matlinpatterson Asset Management Llc 10 percent owner 520 MADISON AVENUE, NEW YORK NY 10022
Peter Schoels director GLOBAL AERO LOGISTICS INC., 101 WORLD DRIVE, PEACHTREE CITY GA 30269
David J Matlin director, 10 percent owner
Matlinpatterson Llc 10 percent owner 520 MADISON AVE, NEW YORK NY 10022
John R. Peshkin director 15360 BARRANCA PARKWAY, IRVINE CA 92618
Mark R Patterson 10 percent owner

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