ELCO (Elcom International) ROE %: 0.00% (As of Jun. 2008)


What is Elcom International ROE %?

Elcom International ELCO ROE % is 0.00% as of Jun. 2008.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Elcom International's annualized net income for the quarter that ended in Jun. 2008 was $-1.42 Mil. Elcom International's average Total Stockholders Equity over the quarter that ended in Jun. 2008 was $-1.81 Mil. Therefore, Elcom International's annualized ROE % for the quarter that ended in Jun. 2008 was N/A%.

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

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

Elcom International  (OTCPK:ELCO) 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: Jun. 2008 )
=Net Income/Total Stockholders Equity
=-1.424/-1.813
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1.424 / 6.8)*(6.8 / 3.0625)*(3.0625 / -1.813)
=Net Margin %*Asset Turnover*Equity Multiplier
=-20.94 %*2.2204*N/A
=ROA %*Equity Multiplier
=-46.5 %*N/A
=N/A %

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: Jun. 2008 )
=Net Income/Total Stockholders Equity
=-1.424/-1.813
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1.424 / -1.424) * (-1.424 / -0.684) * (-0.684 / 6.8) * (6.8 / 3.0625) * (3.0625 / -1.813)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 2.0819 * -10.06 % * 2.2204 * N/A
=N/A %

Note: The net income data used here is four times the quarterly (Jun. 2008) net income data. The Revenue data used here is four times the quarterly (Jun. 2008) 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.

Elcom International ROE % Related Terms

Elcom International ROE % Historical Data

* Premium members only.

The historical data trend for Elcom International'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.

Elcom International ROE % Chart

Elcom International Annual Data
Trend Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

Elcom International Quarterly Data
Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08
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 0.00 0.00 0.00 0.00 0.00

ELCO vs BVSN, CLCI, DUOT: ROE % Comparison

For the Software - Application subindustry, Elcom International'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.

Elcom International ROE % vs Software Industry

For the Software industry and Technology sector, Elcom International's ROE % distribution charts can be found below:

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


Elcom International ROE % Calculation

Elcom International's annualized ROE % for the fiscal year that ended in Dec. 2007 is calculated as

ROE %=Net Income (A: Dec. 2007 )/( (Total Stockholders Equity (A: Dec. 2006 )+Total Stockholders Equity (A: Dec. 2007 ))/ count )
=-3.765/( (-1.337+-1.19)/ 2 )
=-3.765/-1.2635
=N/A %

Elcom International's annualized ROE % for the quarter that ended in Jun. 2008 is calculated as

ROE %=Net Income (Q: Jun. 2008 )/( (Total Stockholders Equity (Q: Mar. 2008 )+Total Stockholders Equity (Q: Jun. 2008 ))/ count )
=-1.424/( (-1.746+-1.88)/ 2 )
=-1.424/-1.813
=N/A %

* 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 (Jun. 2008) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 0.00% mean?
Elcom International (ELCO) has a ROE % of 0.00% as of Jun. 2008. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Elcom International and its competitors.
Is Elcom International's ROE % too high?
Elcom International's current ROE % is 0.00%.
How does Elcom International's ROE % compare to BVSN and CLCI?
Elcom International's ROE % of 0.00% can be compared against companies in the Software industry. The industry median ROE % is 4.72. 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 Software company?
The median ROE % among Software companies is 4.72, based on 2,682 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. 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 Elcom International and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elcom International's current ROE % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elcom International stock overvalued right now?
Elcom International (ELCO) has a current ROE % of 0.00%. The current ROE % is 0.00%. 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 Elcom International (ELCO), the current ROE % is 0.00% as of Jun. 2008. 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.

Elcom International Business Description

Address 300 Granite Street, Suite 412, Braintree, MA, USA, 02184
Elcom International Inc develops and licenses proprietary software systems that enable users to buy and sell merchandise through computer networks. The company's Personal Electronic Commerce Online System is software that enables clients to automate procurement functions, such as pricing, invoicing, and payment. In addition, users can create electronic marketplaces to conduct online transactions with both suppliers and distributors. PECOS is offered as both licensed software and as a hosted application.