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Bangladesh Submarine Cables (DHA:BSCPLC) ROE % : 10.79% (As of Mar. 2024)


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What is Bangladesh Submarine Cables ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Bangladesh Submarine Cables's annualized net income for the quarter that ended in Mar. 2024 was BDT1,618 Mil. Bangladesh Submarine Cables's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was BDT14,996 Mil. Therefore, Bangladesh Submarine Cables's annualized ROE % for the quarter that ended in Mar. 2024 was 10.79%.

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

DHA:BSCPLC' s ROE % Range Over the Past 10 Years
Min: 1.23   Med: 9.25   Max: 25.67
Current: 16.25

During the past 10 years, Bangladesh Submarine Cables's highest ROE % was 25.67%. The lowest was 1.23%. And the median was 9.25%.

DHA:BSCPLC's ROE % is ranked better than
74.86% of 366 companies
in the Telecommunication Services industry
Industry Median: 6.9 vs DHA:BSCPLC: 16.25

Bangladesh Submarine Cables ROE % Historical Data

The historical data trend for Bangladesh Submarine Cables'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.

Bangladesh Submarine Cables ROE % Chart

Bangladesh Submarine Cables Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.55 13.20 23.87 25.67 22.64

Bangladesh Submarine Cables Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 20.74 20.57 17.85 16.02 10.79

Competitive Comparison of Bangladesh Submarine Cables's ROE %

For the Telecom Services subindustry, Bangladesh Submarine Cables'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.


Bangladesh Submarine Cables's ROE % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Bangladesh Submarine Cables's ROE % distribution charts can be found below:

* The bar in red indicates where Bangladesh Submarine Cables's ROE % falls into.



Bangladesh Submarine Cables ROE % Calculation

Bangladesh Submarine Cables's annualized ROE % for the fiscal year that ended in Jun. 2023 is calculated as

ROE %=Net Income (A: Jun. 2023 )/( (Total Stockholders Equity (A: Jun. 2022 )+Total Stockholders Equity (A: Jun. 2023 ))/ count )
=2790.296/( (10628.537+14025.514)/ 2 )
=2790.296/12327.0255
=22.64 %

Bangladesh Submarine Cables's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=1618.124/( (14793.14+15197.936)/ 2 )
=1618.124/14995.538
=10.79 %

* 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 (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Bangladesh Submarine Cables  (DHA:BSCPLC) 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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=1618.124/14995.538
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1618.124 / 3888.028)*(3888.028 / 22204.7345)*(22204.7345 / 14995.538)
=Net Margin %*Asset Turnover*Equity Multiplier
=41.62 %*0.1751*1.4808
=ROA %*Equity Multiplier
=7.29 %*1.4808
=10.79 %

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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=1618.124/14995.538
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1618.124 / 2090.28) * (2090.28 / 1899.764) * (1899.764 / 3888.028) * (3888.028 / 22204.7345) * (22204.7345 / 14995.538)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7741 * 1.1003 * 48.86 % * 0.1751 * 1.4808
=10.79 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) 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.


Bangladesh Submarine Cables ROE % Related Terms

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


Bangladesh Submarine Cables (DHA:BSCPLC) Business Description

Traded in Other Exchanges
N/A
Address
191/1, Tejgaon-Gulshan Link Road, Rahman’s Regnum Center (7th and 8th Floor), Dhaka, BGD, 1208
Bangladesh Submarine Cables PLC is a Core Telecommunication service provider and International Submarine Cable Operator of Bangladesh. It is also an IIG (International Internet Gateway). The service provided by the company represents the Long-haul communication between Bangladesh and the rest of the world. The company is a party in both SMW-4 and SMW-5 Consortiums that provide more capacity and redundancy in Submarine Cables for Bangladesh. BSCCL-IIG is helping the people of the Country to get broadband Internet at a cheaper rate and quality of service.

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