CABB (California Business Bank) ROE %: 4.24% (As of Sep. 2007)


What is California Business Bank ROE %?

California Business Bank CABB ROE % is 4.24% as of Sep. 2007.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. California Business Bank's annualized net income for the quarter that ended in Sep. 2007 was $0.73 Mil. California Business Bank's average Total Stockholders Equity over the quarter that ended in Sep. 2007 was $17.18 Mil. Therefore, California Business Bank's annualized ROE % for the quarter that ended in Sep. 2007 was 4.24%.

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

CABB's ROE % is not ranked *
in the Banks industry.
Industry Median: 10.22
* Ranked among companies with meaningful ROE % only.

California Business Bank  (OTCPK:CABB) 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. 2007 )
=Net Income/Total Stockholders Equity
=0.728/17.1755
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.728 / 4.708)*(4.708 / 112.219)*(112.219 / 17.1755)
=Net Margin %*Asset Turnover*Equity Multiplier
=15.46 %*0.042*6.5337
=ROA %*Equity Multiplier
=0.65 %*6.5337
=4.24 %

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: Sep. 2007 )
=Net Income/Total Stockholders Equity
=0.728/17.1755
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.728 / 0.728) * (0.728 / 4.708) * (4.708 / 112.219) * (112.219 / 17.1755)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1 * 15.46 % * 0.042 * 6.5337
=4.24 %

Note: The net income data used here is four times the quarterly (Sep. 2007) net income data. The Revenue data used here is four times the quarterly (Sep. 2007) 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.

California Business Bank ROE % Related Terms

California Business Bank ROE % Historical Data

* Premium members only.

The historical data trend for California Business Bank'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.

California Business Bank ROE % Chart

California Business Bank Annual Data
Trend
ROE %

California Business Bank Quarterly Data
Mar07 Jun07 Sep07
ROE % 1.07 4.69 4.24

CABB vs OPHC, CCSB, TCNB: ROE % Comparison

For the Banks - Regional subindustry, California Business Bank'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.

California Business Bank ROE % vs Banks Industry

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

* The bar in red indicates where California Business Bank's ROE % falls into.


California Business Bank ROE % Calculation

California Business Bank's annualized ROE % for the fiscal year that ended in . 20 is calculated as

ROE %=Net Income (A: . 20 )/( (Total Stockholders Equity (A: . 20 )+Total Stockholders Equity (A: . 20 ))/ count )
=/( (+)/ )
=/
= %

California Business Bank's annualized ROE % for the quarter that ended in Sep. 2007 is calculated as

ROE %=Net Income (Q: Sep. 2007 )/( (Total Stockholders Equity (Q: Jun. 2007 )+Total Stockholders Equity (Q: Sep. 2007 ))/ count )
=0.728/( (17.005+17.346)/ 2 )
=0.728/17.1755
=4.24 %

* 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 (Sep. 2007) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 4.24% mean?
California Business Bank (CABB) has a ROE % of 4.24% as of Sep. 2007. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on California Business Bank and its competitors.
Is California Business Bank's ROE % too high?
California Business Bank's current ROE % is 4.24%. The Banks industry median ROE % is 10.22. California Business Bank's value of 4.24% is 58.5% below this industry median.
How does California Business Bank's ROE % compare to OPHC and CCSB?
California Business Bank's ROE % of 4.24% can be compared against companies in the Banks industry. The industry median ROE % is 10.22. California Business Bank's value of 4.24% is 58.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. California Business Bank's current ROE % of 4.24% is 58.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on California Business Bank and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. California Business Bank's current ROE % is 4.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is California Business Bank stock overvalued right now?
California Business Bank (CABB) has a current ROE % of 4.24%. The current ROE % is 4.24% and 58.5% below the Banks industry median of 10.22. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For California Business Bank (CABB), the current ROE % is 4.24% as of Sep. 2007. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

California Business Bank Business Description

Address 3200 El Camino Real, Suite 220, Irvine, CA, USA, 92602
California Business Bank is engaged in combining traditional community banking service, with modern technology origination and delivery methods. The company is engaged in providing financial products and services to small businesses and entrepreneurs.