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RCMT (RCM Technologies) ROE % : 37.56% (As of Sep. 2024)


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What is RCM Technologies ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. RCM Technologies's annualized net income for the quarter that ended in Sep. 2024 was $11.0 Mil. RCM Technologies's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $29.2 Mil. Therefore, RCM Technologies's annualized ROE % for the quarter that ended in Sep. 2024 was 37.56%.

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

RCMT' s ROE % Range Over the Past 10 Years
Min: -32.46   Med: 13.35   Max: 72.12
Current: 58.18

During the past 13 years, RCM Technologies's highest ROE % was 72.12%. The lowest was -32.46%. And the median was 13.35%.

RCMT's ROE % is ranked better than
97.6% of 542 companies
in the Conglomerates industry
Industry Median: 5.85 vs RCMT: 58.18

RCM Technologies ROE % Historical Data

The historical data trend for RCM Technologies'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.

RCM Technologies ROE % Chart

RCM Technologies 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 13.62 -32.46 45.59 72.12 58.29

RCM Technologies 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 72.31 89.13 57.29 52.03 37.56

Competitive Comparison of RCM Technologies's ROE %

For the Conglomerates subindustry, RCM Technologies'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.


RCM Technologies's ROE % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, RCM Technologies's ROE % distribution charts can be found below:

* The bar in red indicates where RCM Technologies's ROE % falls into.



RCM Technologies ROE % Calculation

RCM Technologies'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 )
=16.831/( (31.962+25.79)/ 2 )
=16.831/28.876
=58.29 %

RCM Technologies'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 )
=10.984/( (28.452+30.04)/ 2 )
=10.984/29.246
=37.56 %

* 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.


RCM Technologies  (NAS:RCMT) 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
=10.984/29.246
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(10.984 / 241.46)*(241.46 / 121.9115)*(121.9115 / 29.246)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.55 %*1.9806*4.1685
=ROA %*Equity Multiplier
=9.01 %*4.1685
=37.56 %

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
=10.984/29.246
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (10.984 / 15.064) * (15.064 / 17.54) * (17.54 / 241.46) * (241.46 / 121.9115) * (121.9115 / 29.246)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7292 * 0.8588 * 7.26 % * 1.9806 * 4.1685
=37.56 %

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.


RCM Technologies ROE % Related Terms

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


RCM Technologies Business Description

Traded in Other Exchanges
N/A
Address
2500 McClellan Avenue, Suite 350, Pennsauken, NJ, USA, 08109-4613
RCM Technologies Inc is a provider of business and technology solutions designed to enhance and maximize the operational performance of its customers. It operates in three segments: Engineering, which provides a comprehensive portfolio of engineering and design services across three verticals: Energy Services, Process & Industrial, and Aerospace, Life Sciences and Information Technology and Specialty Health Care Services, engaged in providing the staffing of health care professionals, primarily health information management professionals, nurses, paraprofessionals, physicians. The company generates maximum revenue from the Specialty Health Care segment. Geographically, it derives a majority of revenue from the United States and also has a presence in Canada, Puerto Rico, and Serbia.
Executives
Michael Saks other: Sr. Vice President 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Kevin D Miller officer: Chief Financial Officer 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Bradley Vizi 10 percent owner 10390 WILSHIRE BLVD, SUITE 406, LOS ANGELES CA 90024
Chigozie Obinna Amadi director 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Roger H Ballou 10 percent owner, other: See Explanation C/O CDI CORP, 1717 ARCH ST 35TH FL, PHILADELPHIA PA 19103
Richard A. Genovese director 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Jayanth Sree Komarneni director 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Swarna Srinivas Kakodkar director 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Michael Edward Boyle officer: Division President, IT Srvs. 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Harvest Financial Corporation other: See Explanation 1055 LPL WAY, 223 FOURTH AVENUE, FORT MILL SC 29715
Petraglia Frank William Jr officer: Sr. Vice President 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Irs Partnership No. 19, L.p. 10 percent owner 515 S. FIGUEROA STREET, SUITE 1050, LOS ANGELES CA 90071
Danny A. White officer: Sr. Vice President 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Maier O Fein director 2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Michael O'connell 10 percent owner 515 S. FIGUEROA STREET, SUITE 1050, LOS ANGELES CA 90071