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InvenSense (InvenSense) ROE % : -18.24% (As of Dec. 2016)


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What is InvenSense ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. InvenSense's annualized net income for the quarter that ended in Dec. 2016 was $-65.9 Mil. InvenSense's average Total Stockholders Equity over the quarter that ended in Dec. 2016 was $361.4 Mil. Therefore, InvenSense's annualized ROE % for the quarter that ended in Dec. 2016 was -18.24%.

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

INVN's ROE % is not ranked *
in the Semiconductors industry.
Industry Median: 4.49
* Ranked among companies with meaningful ROE % only.

InvenSense ROE % Historical Data

The historical data trend for InvenSense'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.

InvenSense ROE % Chart

InvenSense Annual Data
Trend Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
ROE %
Get a 7-Day Free Trial 31.31 24.23 2.17 -0.32 -5.75

InvenSense Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 1.96 -23.86 -21.62 -13.65 -18.24

Competitive Comparison of InvenSense's ROE %

For the Semiconductors subindustry, InvenSense'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.


InvenSense's ROE % Distribution in the Semiconductors Industry

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

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



InvenSense ROE % Calculation

InvenSense's annualized ROE % for the fiscal year that ended in Mar. 2016 is calculated as

ROE %=Net Income (A: Mar. 2016 )/( (Total Stockholders Equity (A: Mar. 2015 )+Total Stockholders Equity (A: Mar. 2016 ))/ count )
=-21.21/( (359.501+378.745)/ 2 )
=-21.21/369.123
=-5.75 %

InvenSense's annualized ROE % for the quarter that ended in Dec. 2016 is calculated as

ROE %=Net Income (Q: Dec. 2016 )/( (Total Stockholders Equity (Q: Sep. 2016 )+Total Stockholders Equity (Q: Dec. 2016 ))/ count )
=-65.932/( (364.638+358.25)/ 2 )
=-65.932/361.444
=-18.24 %

* 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 (Dec. 2016) net income data. ROE % is displayed in the 30-year financial page.


InvenSense  (NYSE:INVN) 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. 2016 )
=Net Income/Total Stockholders Equity
=-65.932/361.444
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-65.932 / 319.24)*(319.24 / 588.3965)*(588.3965 / 361.444)
=Net Margin %*Asset Turnover*Equity Multiplier
=-20.65 %*0.5426*1.6279
=ROA %*Equity Multiplier
=-11.2 %*1.6279
=-18.24 %

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. 2016 )
=Net Income/Total Stockholders Equity
=-65.932/361.444
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-65.932 / -64.824) * (-64.824 / -55.032) * (-55.032 / 319.24) * (319.24 / 588.3965) * (588.3965 / 361.444)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0171 * 1.1779 * -17.24 % * 0.5426 * 1.6279
=-18.24 %

Note: The net income data used here is four times the quarterly (Dec. 2016) net income data. The Revenue data used here is four times the quarterly (Dec. 2016) 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.


InvenSense ROE % Related Terms

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


InvenSense (InvenSense) Business Description

Traded in Other Exchanges
N/A
Address
InvenSense Inc was incorporated in the State of California in June 2003 and reincorporated in the State of Delaware in October 2004. The Company designs, develops, markets and sells Micro-Electro-Mechanical Systems ("MEMS") sensors, including accelerometers, gyroscopes, barometers, compasses, and microphones, with proprietary algorithms, processors and firmware that synthesize and calibrate sensor output data for the mobile, wearable, smart home, gaming, industrial, and automotive market segments. The Company delivers solutions based on its advanced motion and sound technology targeting solutions such as: smartphones, tablets, wearables, console and portable video gaming devices, digital television and set-top box remote controls, fitness accessories, sports equipment, digital still cameras, automobiles, ultra-books, laptops, hearing aids, stabilization systems, tools, navigation devices, remote controlled toys and other household consumer and industrial devices. The Company's five principal types of motion and also audio sensors include; Accelerometers that measure linear acceleration and tilt angle; Gyroscopes (Gyros) measures the angular rate of rotational movement about one or more axes, such as in a video game controller, or jitter, such as in an image stabilizer; Magnetic Sensors (Compasses) detects magnetic fields and measure their absolute position relative to the Earth's magnetic north and nearby magnetic materials; Pressure Sensors (Barometers) measures relative and absolute altitude through the analysis of changing atmospheric pressure; and Audio Sensors (Microphones) detects audible sound, as well as ultrasound in some use cases. The Company faces competition from Analog Devices, Inc., Epson Toyocom Corporation, Kionix, Inc. (a wholly owned subsidiary of Rohm Co., Ltd.), Knowles Corporation, MEMSIC, Inc., Murata Manufacturing Co., Ltd., Panasonic Corporation, Robert Bosch GmbH, Sony Corporation and STMicroelectronics N.V. (STMicro).
Executives
Emiko Higashi director C/O GILO VENTURES, 175 ALMENDRAL AVENUE, ATHERTON CA 94027
Mark P Dentinger officer: Chief Financial Officer
Jon A Olson director 2100 LOGIC DRIVE, SAN JOSE CA 95124
Eric B Stang director
Behrooz L. Abdi director, officer: CEO and President 1875 CHARLESTON ROAD, MOUNTAIN VIEW CA 94043
Timothy M Wilson director 1197 BOREGAS AVENUE, SUNNYVALE CA 94089
R Douglas Norby director C/O MAGNACHIP SEMICONDUCTOR, INC., 20400 STEVENS CREEK BOULEVARD, SUITE 370, CUPERTINO CA 95014
Partech U.s. Partners Iv, L.l.c. 10 percent owner C/O 50 CALIFORNIA STREET, SUITE 3200, SAN FRANCISCO CA 94111
Vincent Worms 10 percent owner C/O 50 CALIFORNIA STREET, SUITE 3200, SAN FRANCISCO CA 94111
45th Parallel Llc 10 percent owner C/O 50 CALIFORNIA STREET, SUITE 3200, SAN FRANCISCO CA 94111
Par Sf Ii, L.l.c. 10 percent owner C/O 50 CALIFORNIA STREET, SUITE 3200, SAN FRANCISCO CA 94111

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