GURUFOCUS.COM » STOCK LIST » Technology » Hardware » DZS Inc (NAS:DZSI) » Definitions » ROE %

DZS (DZSI) ROE % : -50.65% (As of Mar. 2023)


View and export this data going back to 2003. Start your Free Trial

What is DZS ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. DZS's annualized net income for the quarter that ended in Mar. 2023 was $-68.5 Mil. DZS's average Total Stockholders Equity over the quarter that ended in Mar. 2023 was $135.3 Mil. Therefore, DZS's annualized ROE % for the quarter that ended in Mar. 2023 was -50.65%.

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

DZSI's ROE % is not ranked *
in the Hardware industry.
Industry Median: 4.72
* Ranked among companies with meaningful ROE % only.

DZS ROE % Historical Data

The historical data trend for DZS'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.

DZS ROE % Chart

DZS Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.68 -14.64 -23.07 -30.76 -27.26

DZS Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 -9.28 -18.91 -47.09 -46.03 -50.65

Competitive Comparison of DZS's ROE %

For the Communication Equipment subindustry, DZS'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.


DZS's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, DZS's ROE % distribution charts can be found below:

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



DZS ROE % Calculation

DZS's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=-37.431/( (131.907+142.732)/ 2 )
=-37.431/137.3195
=-27.26 %

DZS's annualized ROE % for the quarter that ended in Mar. 2023 is calculated as

ROE %=Net Income (Q: Mar. 2023 )/( (Total Stockholders Equity (Q: Dec. 2022 )+Total Stockholders Equity (Q: Mar. 2023 ))/ count )
=-68.54/( (142.732+127.885)/ 2 )
=-68.54/135.3085
=-50.65 %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.


DZS  (NAS:DZSI) 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. 2023 )
=Net Income/Total Stockholders Equity
=-68.54/135.3085
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-68.54 / 363.248)*(363.248 / 372.9685)*(372.9685 / 135.3085)
=Net Margin %*Asset Turnover*Equity Multiplier
=-18.87 %*0.9739*2.7564
=ROA %*Equity Multiplier
=-18.38 %*2.7564
=-50.65 %

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. 2023 )
=Net Income/Total Stockholders Equity
=-68.54/135.3085
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-68.54 / -61.168) * (-61.168 / -44.304) * (-44.304 / 363.248) * (363.248 / 372.9685) * (372.9685 / 135.3085)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.1205 * 1.3806 * -12.2 % * 0.9739 * 2.7564
=-50.65 %

Note: The net income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


DZS ROE % Related Terms

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


DZS (DZSI) Business Description

Traded in Other Exchanges
Address
5700 Tennyson Parkway, Suite 400, Plano, TX, USA, 75024
DZS Inc is a broad-based network access solutions provider. It designs, develops and manufactures communications network equipment for telecommunications operators and enterprises. The firm provides solutions in five major product areas: broadband access, mobile backhaul, Ethernet switching, passive optical LAN and software-defined networks. It also offers customer premise equipment, network management, cabinets, and channel bank. Its primary geographic markets are the Americas; Europe, Middle East, Africa, and Asia.
Executives
Gunter Reiss officer: Chief Customer Officer, AEMEA 2300 ORCHARD PARKWAY, SAN JOSE CA 95131
Justin K. Ferguson officer: Chief Legal Officer C/O DZS INC., 5700 TENNYSON PARKWAY SUITE 400, PLANO TX 75024
Charles D Vogt director, officer: President & CEO TEKELEC, 26580 WEST AGOURA ROAD, CALABASAS CA 91302
Misty Dawn Kawecki officer: Chief Financial Officer C/O DZS INC., 7500 TENNYSON PARKWAY, PLANO TX 75024
Barbara Carbone director 120 BROADWAY, SUITE 200, SANTA MONICA CA 90401
Min Woo Nam director C/O ZHONE TECHNOLOGIES, INC., 7195 OAKPORT STREET, OAKLAND CA 94621
David R Schopp director C/O DASAN ZHONE SOLUTIONS, INC., 7195 OAKPORT ST., OAKLAND CA 94621
Choon Yul Yoo director C/O DASAN ZHONE SOLUTIONS, INC., 7195 OAKPORT ST., OAKLAND CA 94621
Joon Kyung Kim director 3200 WILSHIRE BLVD STE 1400, LOS ANGELES CA 90010
Matthew W Bross director C/O 4 TECHNOLOGY PARK DRIVE, WESTFORD MA 01886
Norman L Foust officer: SVP of Global Supply Chain C/O CYAN, INC., 1383 N. MCDOWELL BLVD., SUITE 300, PETALUMA CA 94954
Miguel Alonso officer: Chief Product Officer 5700 TENNYSON PARKWAY, SUITE 400, PLANO TX 75024
Thomas Arthur Carter officer: Chief Customer Officer, AEMEA 5700 TENNYSON PARKWAY, SUITE 400, PLANO TX 75024
Deok Yeon Won officer: Chief Customer Officer, Asia 5700 TENNYSON PARKWAY, SUITE 400, PLANO TX 75024
Dasan Networks, Inc 10 percent owner DASAN TOWER, 49, DAEWANGPANGYO-RO, 644 BEON-GIL, BUNDANG-GU, SEONGNAM-SI GYEONGGI-DO M5 13493

DZS (DZSI) Headlines

From GuruFocus

DZS Inc. Announces Delayed 10-Q Filing

By Marketwired 08-09-2023

DZS Secures $29.7 Million in Financing

By Marketwired 09-13-2023