GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » PWC Capital Inc (TSX:PWC.PR.B.PFD) » Definitions » ROE %

PWC Capital (TSX:PWC.PR.B.PFD) ROE % : 24.43% (As of Jan. 2017)


View and export this data going back to 2009. Start your Free Trial

What is PWC Capital ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. PWC Capital's annualized net income for the quarter that ended in Jan. 2017 was C$47.46 Mil. PWC Capital's average Total Stockholders Equity over the quarter that ended in Jan. 2017 was C$194.23 Mil. Therefore, PWC Capital's annualized ROE % for the quarter that ended in Jan. 2017 was 24.43%.

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

TSX:PWC.PR.B.PFD' s ROE % Range Over the Past 10 Years
Min: -69.73   Med: -43.63   Max: 25.62
Current: 25.62

During the past 13 years, PWC Capital's highest ROE % was 25.62%. The lowest was -69.73%. And the median was -43.63%.

TSX:PWC.PR.B.PFD's ROE % is not ranked
in the Banks industry.
Industry Median: 9.88 vs TSX:PWC.PR.B.PFD: 25.62

PWC Capital ROE % Historical Data

The historical data trend for PWC Capital'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.

PWC Capital ROE % Chart

PWC Capital Annual Data
Trend Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -22.70 -57.30 -69.17 8.89 4.70

PWC Capital Quarterly Data
Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17
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 10.64 - - 52.98 24.43

Competitive Comparison of PWC Capital's ROE %

For the Banks - Regional subindustry, PWC Capital'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.


PWC Capital's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, PWC Capital's ROE % distribution charts can be found below:

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



PWC Capital ROE % Calculation

PWC Capital's annualized ROE % for the fiscal year that ended in Oct. 2016 is calculated as

ROE %=Net Income (A: Oct. 2016 )/( (Total Stockholders Equity (A: Oct. 2015 )+Total Stockholders Equity (A: Oct. 2016 ))/ count )
=8.47/( (174.622+185.884)/ 2 )
=8.47/180.253
=4.70 %

PWC Capital's annualized ROE % for the quarter that ended in Jan. 2017 is calculated as

ROE %=Net Income (Q: Jan. 2017 )/( (Total Stockholders Equity (Q: Oct. 2016 )+Total Stockholders Equity (Q: Jan. 2017 ))/ count )
=47.456/( (185.884+202.583)/ 2 )
=47.456/194.2335
=24.43 %

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


PWC Capital  (TSX:PWC.PR.B.PFD) 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: Jan. 2017 )
=Net Income/Total Stockholders Equity
=47.456/194.2335
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(47.456 / 45.728)*(45.728 / 1738.702)*(1738.702 / 194.2335)
=Net Margin %*Asset Turnover*Equity Multiplier
=103.78 %*0.0263*8.9516
=ROA %*Equity Multiplier
=2.73 %*8.9516
=24.43 %

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: Jan. 2017 )
=Net Income/Total Stockholders Equity
=47.456/194.2335
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (47.456 / 16.804) * (16.804 / 45.728) * (45.728 / 1738.702) * (1738.702 / 194.2335)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 2.8241 * 36.75 % * 0.0263 * 8.9516
=24.43 %

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


PWC Capital ROE % Related Terms

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


PWC Capital (TSX:PWC.PR.B.PFD) Business Description

Traded in Other Exchanges
N/A
Address
Pacific & Western Credit Corp is a holding company. The Company's wholly-owned and main subsidiary is Pacific & Western Bank of Canada, which provides financial solutions to clients in selected niche markets. The Bank receives deposits through a diversified network of deposit brokers and is a member institution of the Canada Deposit Insurance Corporation ('CDIC'). The Bank invests these funds in loans, leases, commercial mortgages, residential development mortgages, equity and debt of corporations, and government guaranteed securities, all of which are selected to provide lower returns on equity but with limited risk of default. The Bank has two main business activities, namely deposit services and lending services. Deposit services are located in Saskatoon, Saskatchewan. Deposits, consisting of guaranteed investment certificates and daily interest savings accounts, eligible for CDIC insurance, are raised through a diversified network of deposit brokers across Canada. The Bank's business is comprised of three core lending segments, being real estate lending, public sector lending and commercial lending. The Bank's real estate lending portfolio is organized into four categories, being land and construction loans, residential term mortgages, commercial term mortgages, and insured mortgages. The Bank provides land and construction loans, residential term mortgages, commercial term mortgages, and insured mortgages.

PWC Capital (TSX:PWC.PR.B.PFD) Headlines

No Headlines