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DTCK (Davis Commodities) ROE % : -18.98% (As of Dec. 2023)


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What is Davis Commodities ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Davis Commodities's annualized net income for the quarter that ended in Dec. 2023 was $-1.7 Mil. Davis Commodities's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $9.1 Mil. Therefore, Davis Commodities's annualized ROE % for the quarter that ended in Dec. 2023 was -18.98%.

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

DTCK' s ROE % Range Over the Past 10 Years
Min: 13.35   Med: 66.48   Max: 208.98
Current: 13.44

During the past 4 years, Davis Commodities's highest ROE % was 208.98%. The lowest was 13.35%. And the median was 66.48%.

DTCK's ROE % is ranked better than
73.55% of 1860 companies
in the Consumer Packaged Goods industry
Industry Median: 6.98 vs DTCK: 13.44

Davis Commodities ROE % Historical Data

The historical data trend for Davis Commodities'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.

Davis Commodities ROE % Chart

Davis Commodities Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROE %
18.80 208.98 114.16 13.35

Davis Commodities Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROE % Get a 7-Day Free Trial 336.78 87.91 148.62 55.81 -18.98

Competitive Comparison of Davis Commodities's ROE %

For the Farm Products subindustry, Davis Commodities'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.


Davis Commodities's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Davis Commodities's ROE % distribution charts can be found below:

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



Davis Commodities ROE % Calculation

Davis Commodities's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=1.086/( (6.013+10.258)/ 2 )
=1.086/8.1355
=13.35 %

Davis Commodities's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-1.73/( (7.971+10.258)/ 2 )
=-1.73/9.1145
=-18.98 %

* 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 two times the semi-annual (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Davis Commodities  (NAS:DTCK) 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. 2023 )
=Net Income/Total Stockholders Equity
=-1.73/9.1145
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1.73 / 185.92)*(185.92 / 31.3075)*(31.3075 / 9.1145)
=Net Margin %*Asset Turnover*Equity Multiplier
=-0.93 %*5.9385*3.4349
=ROA %*Equity Multiplier
=-5.52 %*3.4349
=-18.98 %

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. 2023 )
=Net Income/Total Stockholders Equity
=-1.73/9.1145
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1.73 / -2.194) * (-2.194 / -2.096) * (-2.096 / 185.92) * (185.92 / 31.3075) * (31.3075 / 9.1145)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7885 * 1.0468 * -1.13 % * 5.9385 * 3.4349
=-18.98 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 2023) 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.


Davis Commodities ROE % Related Terms

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


Davis Commodities Business Description

Traded in Other Exchanges
N/A
Address
10 Bukit Batok Crescent, No. 10-01, The Spire, Singapore, SGP, 658079
Website
Davis Commodities Ltd is an agricultural commodity trading company based in Singapore which specializes in trading of three main categories of agricultural commodities namely sugar, rice, and oil and fat products. It distributes agricultural commodities to various markets, including Asia, Africa and the Middle East. The company also provides customers of commodity offerings with complementary, ancillary services such as warehouse handling and storage and logistics services.