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Henry County Bancshares (Henry County Bancshares) ROE % : -23.17% (As of Mar. 2011)


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What is Henry County Bancshares ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Henry County Bancshares's annualized net income for the quarter that ended in Mar. 2011 was $-3.48 Mil. Henry County Bancshares's average Total Stockholders Equity over the quarter that ended in Mar. 2011 was $15.02 Mil. Therefore, Henry County Bancshares's annualized ROE % for the quarter that ended in Mar. 2011 was -23.17%.

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

HYCY's ROE % is not ranked *
in the Banks industry.
Industry Median: 9.66
* Ranked among companies with meaningful ROE % only.

Henry County Bancshares ROE % Historical Data

The historical data trend for Henry County Bancshares'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.

Henry County Bancshares ROE % Chart

Henry County Bancshares Annual Data
Trend Dec05 Dec06 Dec07 Dec09 Dec10
ROE %
16.38 18.53 11.87 -74.15 -34.75

Henry County Bancshares Quarterly Data
Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11
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 71.49 -104.31 -46.17 -69.45 -23.17

Competitive Comparison of Henry County Bancshares's ROE %

For the Banks - Regional subindustry, Henry County Bancshares'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.


Henry County Bancshares's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Henry County Bancshares's ROE % distribution charts can be found below:

* The bar in red indicates where Henry County Bancshares's ROE % falls into.



Henry County Bancshares ROE % Calculation

Henry County Bancshares's annualized ROE % for the fiscal year that ended in Dec. 2010 is calculated as

ROE %=Net Income (A: Dec. 2010 )/( (Total Stockholders Equity (A: Dec. 2009 )+Total Stockholders Equity (A: Dec. 2010 ))/ count )
=-6.709/( (23.327+15.281)/ 2 )
=-6.709/19.304
=-34.75 %

Henry County Bancshares's annualized ROE % for the quarter that ended in Mar. 2011 is calculated as

ROE %=Net Income (Q: Mar. 2011 )/( (Total Stockholders Equity (Q: Dec. 2010 )+Total Stockholders Equity (Q: Mar. 2011 ))/ count )
=-3.48/( (15.281+14.761)/ 2 )
=-3.48/15.021
=-23.17 %

* 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. 2011) net income data. ROE % is displayed in the 30-year financial page.


Henry County Bancshares  (OTCPK:HYCY) 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. 2011 )
=Net Income/Total Stockholders Equity
=-3.48/15.021
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-3.48 / 11.688)*(11.688 / 569.3745)*(569.3745 / 15.021)
=Net Margin %*Asset Turnover*Equity Multiplier
=-29.77 %*0.0205*37.9052
=ROA %*Equity Multiplier
=-0.61 %*37.9052
=-23.17 %

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. 2011 )
=Net Income/Total Stockholders Equity
=-3.48/15.021
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-3.48 / -3.48) * (-3.48 / 11.688) * (11.688 / 569.3745) * (569.3745 / 15.021)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1 * -29.77 % * 0.0205 * 37.9052
=-23.17 %

Note: The net income data used here is four times the quarterly (Mar. 2011) net income data. The Revenue data used here is four times the quarterly (Mar. 2011) 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.


Henry County Bancshares ROE % Related Terms

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Henry County Bancshares (Henry County Bancshares) Business Description

Traded in Other Exchanges
N/A
Address
Henry County Bancshares, Inc was incoporated in gerogia, operates as the holding company for The First State Bank that provides various commercial and consumer banking services to individuals and small businesses in Georgia. The company's deposit products include checking, passbook savings, and money market accounts; time deposits; and interest-bearing and non-interest-bearing demand deposits. Its lending portfolio comprises commercial real estate loans; residential construction and development loans; commercial construction loans; loans secured by first or second mortgages on residential real estate; commercial loans to small and medium sized businesses for purposes, such as new or upgrades to plant and equipment, inventory acquisition, and various working capital purposes; home equity loans; loans secured by savings accounts; and consumer loans consisting of installment loans to individuals for personal, family, and household purposes. The company serves customers in Henry and adjacent counties through its main office and six full service branches located in Stockbridge, Ellenwood, McDonough, and Locust Grove, Georgia.

Henry County Bancshares (Henry County Bancshares) Headlines

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