GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Rand Capital Corp (NAS:RAND) » Definitions » ROE %

RAND (Rand Capital) ROE % : 15.18% (As of Sep. 2024)


View and export this data going back to 1995. Start your Free Trial

What is Rand Capital ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rand Capital's annualized net income for the quarter that ended in Sep. 2024 was $10.55 Mil. Rand Capital's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $69.50 Mil. Therefore, Rand Capital's annualized ROE % for the quarter that ended in Sep. 2024 was 15.18%.

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

RAND' s ROE % Range Over the Past 10 Years
Min: -5.38   Med: 0.13   Max: 29.57
Current: 19.93

During the past 13 years, Rand Capital's highest ROE % was 29.57%. The lowest was -5.38%. And the median was 0.13%.

RAND's ROE % is ranked better than
86.18% of 1671 companies
in the Asset Management industry
Industry Median: 6.43 vs RAND: 19.93

Rand Capital ROE % Historical Data

The historical data trend for Rand Capital'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.

Rand Capital ROE % Chart

Rand Capital Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.38 1.49 29.57 -1.49 11.01

Rand Capital Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 3.88 7.13 9.14 47.57 15.18

Competitive Comparison of Rand Capital's ROE %

For the Asset Management subindustry, Rand Capital'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.


Rand Capital's ROE % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Rand Capital's ROE % distribution charts can be found below:

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



Rand Capital ROE % Calculation

Rand Capital's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=6.527/( (57.721+60.815)/ 2 )
=6.527/59.268
=11.01 %

Rand Capital's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=10.548/( (68.559+70.447)/ 2 )
=10.548/69.503
=15.18 %

* 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. 2024) net income data. ROE % is displayed in the 30-year financial page.


Rand Capital  (NAS:RAND) 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. 2024 )
=Net Income/Total Stockholders Equity
=10.548/69.503
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(10.548 / 10.952)*(10.952 / 85.2935)*(85.2935 / 69.503)
=Net Margin %*Asset Turnover*Equity Multiplier
=96.31 %*0.1284*1.2272
=ROA %*Equity Multiplier
=12.37 %*1.2272
=15.18 %

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. 2024 )
=Net Income/Total Stockholders Equity
=10.548/69.503
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (10.548 / 9.796) * (9.796 / 10.952) * (10.952 / 85.2935) * (85.2935 / 69.503)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1.0768 * 89.44 % * 0.1284 * 1.2272
=15.18 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) 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.


Rand Capital ROE % Related Terms

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


Rand Capital Business Description

Traded in Other Exchanges
N/A
Address
1405 Rand Building, Buffalo, NY, USA, 14203
Rand Capital Corp is a closed-end, diversified management company. The firm's investment objectives is to maximize the total return to the shareholders with current income combined with capital appreciation. Some of its portfolios include lumious, and GiveGab among others.
Executives
Adam Samuel Gusky director RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 2200, BUFFALO NY 14203
Benjamin E Godley director RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 2200, BUFFALO NY 14203
Cari L Jaroslawsky director C/O HARTER SECREST & EMERY LLP, 1600 BAUSCH & LOMB PLACE, ROCHESTER NY 14604
Daniel P Penberthy officer: EVP and CFO C/O RAND CAPITAL CORP, 2200 RAND BLDG, BUFFALO NY 14203
Robert M Zak director 250 MAIN STREET, BUFFALO NY 14202
Erland E Kailbourne director C/O RAND CAPITAL CORP, 2200 RAND BUILDING, BUFFFALO NY 14203
Heather Eastgate officer: Chief Compliance Officer C/O RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 1405, BUFFALO NY 14203
East Asset Management, Llc 10 percent owner 777 NW BEACON SQUARE BLVD., BOCA RATON FL 33487
Nancy Marie Stone officer: Chief Compliance Officer C/O RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 1405, BUFFALO NY 14203
Margaret Brechtel officer: EVP, Treas., CFO & Sec. C/O RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 1405, BUFFALO NY 14203
User-friendly Holding, Llc 10 percent owner 10200 GROGANS MILL RD., SUITE 440, THE WOODLANDS TX 77380
User-friendly Phone Book, Llc 10 percent owner 10200 GROGANS MILL RD., SUITE 440, THE WOODLANDS TX 77380
Newman Reginald B Ii director PRIOR AVIATION SERVICE INC., 50 NORTH AIRPORT DRIVE, BUFFALO NY 14225
Utility Service Holding Co., Inc. 10 percent owner P.O. BOX 240, WARTHEN GA 31094
Colmac Holdings Ltd 10 percent owner 8 KING STREET EAST, SUITE 1901, TORONTO A6 M5C 1B5