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Canal Capital (Canal Capital) ROE % : 164.76% (As of Jul. 2012)


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What is Canal Capital ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Canal Capital's annualized net income for the quarter that ended in Jul. 2012 was $1.88 Mil. Canal Capital's average Total Stockholders Equity over the quarter that ended in Jul. 2012 was $1.14 Mil. Therefore, Canal Capital's annualized ROE % for the quarter that ended in Jul. 2012 was 164.76%.

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

COWP's ROE % is not ranked *
in the Real Estate industry.
Industry Median: 2.83
* Ranked among companies with meaningful ROE % only.

Canal Capital ROE % Historical Data

The historical data trend for Canal 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.

Canal Capital ROE % Chart

Canal Capital Annual Data
Trend Oct02 Oct03 Oct04 Oct05 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -69.78 -6.52 34.94 46.61 -68.93

Canal Capital Quarterly Data
Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12
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 -426.43 -369.61 2.82 71.16 164.76

Competitive Comparison of Canal Capital's ROE %

For the Real Estate - Development subindustry, Canal 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.


Canal Capital's ROE % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Canal Capital's ROE % distribution charts can be found below:

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



Canal Capital ROE % Calculation

Canal Capital's annualized ROE % for the fiscal year that ended in Oct. 2011 is calculated as

ROE %=Net Income (A: Oct. 2011 )/( (Total Stockholders Equity (A: Oct. 2010 )+Total Stockholders Equity (A: Oct. 2011 ))/ count )
=-0.741/( (1.458+0.692)/ 2 )
=-0.741/1.075
=-68.93 %

Canal Capital's annualized ROE % for the quarter that ended in Jul. 2012 is calculated as

ROE %=Net Income (Q: Jul. 2012 )/( (Total Stockholders Equity (Q: Apr. 2012 )+Total Stockholders Equity (Q: Jul. 2012 ))/ count )
=1.884/( (0.895+1.392)/ 2 )
=1.884/1.1435
=164.76 %

* 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 (Jul. 2012) net income data. ROE % is displayed in the 30-year financial page.


Canal Capital  (OTCPK:COWP) 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: Jul. 2012 )
=Net Income/Total Stockholders Equity
=1.884/1.1435
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1.884 / 3.536)*(3.536 / 2.9195)*(2.9195 / 1.1435)
=Net Margin %*Asset Turnover*Equity Multiplier
=53.28 %*1.2112*2.5531
=ROA %*Equity Multiplier
=64.53 %*2.5531
=164.76 %

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: Jul. 2012 )
=Net Income/Total Stockholders Equity
=1.884/1.1435
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1.884 / 2.02) * (2.02 / 2.072) * (2.072 / 3.536) * (3.536 / 2.9195) * (2.9195 / 1.1435)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9327 * 0.9749 * 58.6 % * 1.2112 * 2.5531
=164.76 %

Note: The net income data used here is four times the quarterly (Jul. 2012) net income data. The Revenue data used here is four times the quarterly (Jul. 2012) 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.


Canal Capital ROE % Related Terms

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Canal Capital (Canal Capital) Business Description

Traded in Other Exchanges
N/A
Address
4 Morris Street, Port Jefferson Station, New York, NY, USA, 11776
Website
Canal Capital Corp is engaged in stockyard operations and real estate business. It develops and restructures real estate lots surrounding its existing operating lease properties, stockyard operating properties & properties held for development or resale.
Executives
Asher B Edelman other: Member of 10% Group C/O PERINI CORP, 73 MT WAYTE AVE, FRAMINGHAM MA 01701

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