GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Albemarle & Bond Holdings PLC (LSE:ABM) » Definitions » ROE %

Albemarle & Bond Holdings (LSE:ABM) ROE % : 4.50% (As of Jun. 2013)


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

What is Albemarle & Bond Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Albemarle & Bond Holdings's annualized net income for the quarter that ended in Jun. 2013 was £3.5 Mil. Albemarle & Bond Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2013 was £78.6 Mil. Therefore, Albemarle & Bond Holdings's annualized ROE % for the quarter that ended in Jun. 2013 was 4.50%.

The historical rank and industry rank for Albemarle & Bond Holdings's ROE % or its related term are showing as below:

LSE:ABM's ROE % is not ranked *
in the Credit Services industry.
Industry Median: 6.215
* Ranked among companies with meaningful ROE % only.

Albemarle & Bond Holdings ROE % Historical Data

The historical data trend for Albemarle & Bond Holdings'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.

Albemarle & Bond Holdings ROE % Chart

Albemarle & Bond Holdings Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.27 25.94 23.33 20.65 4.50

Albemarle & Bond Holdings Semi-Annual Data
Jun92 Jun93 Jun94 Jun95 Jun96 Jun97 Jun98 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
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 22.27 25.94 23.33 20.65 4.50

Competitive Comparison of Albemarle & Bond Holdings's ROE %

For the Credit Services subindustry, Albemarle & Bond Holdings'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.


Albemarle & Bond Holdings's ROE % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Albemarle & Bond Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Albemarle & Bond Holdings's ROE % falls into.



Albemarle & Bond Holdings ROE % Calculation

Albemarle & Bond Holdings's annualized ROE % for the fiscal year that ended in Jun. 2013 is calculated as

ROE %=Net Income (A: Jun. 2013 )/( (Total Stockholders Equity (A: Jun. 2012 )+Total Stockholders Equity (A: Jun. 2013 ))/ count )
=3.536/( (80.291+76.958)/ 2 )
=3.536/78.6245
=4.50 %

Albemarle & Bond Holdings's annualized ROE % for the quarter that ended in Jun. 2013 is calculated as

ROE %=Net Income (Q: Jun. 2013 )/( (Total Stockholders Equity (Q: Jun. 2012 )+Total Stockholders Equity (Q: Jun. 2013 ))/ count )
=3.536/( (80.291+76.958)/ 2 )
=3.536/78.6245
=4.50 %

* 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 one times the annual (Jun. 2013) net income data. ROE % is displayed in the 30-year financial page.


Albemarle & Bond Holdings  (LSE:ABM) 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. 2013 )
=Net Income/Total Stockholders Equity
=3.536/78.6245
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3.536 / 107.069)*(107.069 / 137.9295)*(137.9295 / 78.6245)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.3 %*0.7763*1.7543
=ROA %*Equity Multiplier
=2.56 %*1.7543
=4.50 %

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. 2013 )
=Net Income/Total Stockholders Equity
=3.536/78.6245
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (3.536 / 4.943) * (4.943 / 6.73) * (6.73 / 107.069) * (107.069 / 137.9295) * (137.9295 / 78.6245)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7154 * 0.7345 * 6.29 % * 0.7763 * 1.7543
=4.50 %

Note: The net income data used here is one times the annual (Jun. 2013) net income data. The Revenue data used here is one times the annual (Jun. 2013) 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.


Albemarle & Bond Holdings ROE % Related Terms

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


Albemarle & Bond Holdings (LSE:ABM) Business Description

Traded in Other Exchanges
N/A
Address
Albemarle & Bond Holdings PLC was incorporated on January 17, 1986. The Company is a holding company engaged in pawnbroking, retail jewellery sales, gold purchasing, unsecured lending, including cheque cashing and other financial services. It has approximately 230 stores and 1,000 employees. Operating under the two brands, Albemarle Bond and Herbert Brown, it provides its customers with a range of services including jewellery retailing, pawnbroking loans, gold purchasing and a range of unsecured loan products. The pawn loan is secured against jewellery for a maximum of six months. The customer can redeem their jewellery by repaying the loan and interest owing at any time without incurring penalties for early redemption. The Company provides short-term loans through three products, PayDay Advances, Speedloans, and Cheque Cashing. PayDay Advances offer customers short-term unsecured loans to meet their cash flow requirements until wages are received. Speedloans provide customers with immediately available installment loans over a longer term of between six and 18 months and Cheque Cashing provides access to their cash for customers who have received cheques. The Company offers a range of new and second hand jewellery. Herbert Brown offers a range of new, second hand and antique jewellery.