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Precicion Trim (Precicion Trim) ROE % : 23.20% (As of Sep. 2011)


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What is Precicion Trim ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Precicion Trim's annualized net income for the quarter that ended in Sep. 2011 was $5.07 Mil. Precicion Trim's average Total Stockholders Equity over the quarter that ended in Sep. 2011 was $21.86 Mil. Therefore, Precicion Trim's annualized ROE % for the quarter that ended in Sep. 2011 was 23.20%.

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

PRTR's ROE % is not ranked *
in the Industrial Products industry.
Industry Median: 6.77
* Ranked among companies with meaningful ROE % only.

Precicion Trim ROE % Historical Data

The historical data trend for Precicion Trim'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.

Precicion Trim ROE % Chart

Precicion Trim Annual Data
Trend Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 76.23 18.84 8.68 6.04 44.26

Precicion Trim Quarterly Data
Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11
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 45.96 35.75 23.55 21.57 23.20

Competitive Comparison of Precicion Trim's ROE %

For the Tools & Accessories subindustry, Precicion Trim'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.


Precicion Trim's ROE % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Precicion Trim's ROE % distribution charts can be found below:

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



Precicion Trim ROE % Calculation

Precicion Trim'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 )
=6.577/( (11.232+18.491)/ 2 )
=6.577/14.8615
=44.26 %

Precicion Trim's annualized ROE % for the quarter that ended in Sep. 2011 is calculated as

ROE %=Net Income (Q: Sep. 2011 )/( (Total Stockholders Equity (Q: Jun. 2011 )+Total Stockholders Equity (Q: Sep. 2011 ))/ count )
=5.072/( (21.114+22.612)/ 2 )
=5.072/21.863
=23.20 %

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


Precicion Trim  (OTCPK:PRTR) 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: Sep. 2011 )
=Net Income/Total Stockholders Equity
=5.072/21.863
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(5.072 / 8.696)*(8.696 / 22.695)*(22.695 / 21.863)
=Net Margin %*Asset Turnover*Equity Multiplier
=58.33 %*0.3832*1.0381
=ROA %*Equity Multiplier
=22.35 %*1.0381
=23.20 %

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: Sep. 2011 )
=Net Income/Total Stockholders Equity
=5.072/21.863
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (5.072 / 5.824) * (5.824 / 5.564) * (5.564 / 8.696) * (8.696 / 22.695) * (22.695 / 21.863)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8709 * 1.0467 * 63.98 % * 0.3832 * 1.0381
=23.20 %

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


Precicion Trim ROE % Related Terms

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Precicion Trim (Precicion Trim) Business Description

Traded in Other Exchanges
N/A
Address
17011 Beach Boulevard, 9th Floor, Huntington Beach, CA, USA, 92647
Precicion Trim Inc is a United States based company operating in the machine automation and development field. It designs, manufactures and distributes robotic and non-robotic machines in a wide variety of industries. The company is focused on the development and design of its flower trimming equipment. The equipment will be able to trim the head off of flowering plants at a distance that is programmable by the user. In addition, the company also owns medical devices.
Executives
Kenneth Leung director 257 GOLD STREET APT. 14B BROOKLYN NY 11201
Joseph Charles Passalaqua 10 percent owner 106 GLENWOOD DR SOUTH, LIVERPOOL NY 13090
Craig Burton director, officer: President 104 DUNLAP DRIVE, DEWITT NY 13214

Precicion Trim (Precicion Trim) Headlines

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