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Safetek International (Safetek International) ROE % : Negative Equity% (As of Sep. 2006)


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What is Safetek International ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Safetek International's annualized net income for the quarter that ended in Sep. 2006 was $1.38 Mil. Safetek International's average Total Stockholders Equity over the quarter that ended in Sep. 2006 was $-1.91 Mil. Therefore, Safetek International's annualized ROE % for the quarter that ended in Sep. 2006 was Negative Equity%.

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

SFIN's ROE % is not ranked *
in the Diversified Financial Services industry.
Industry Median: 0.66
* Ranked among companies with meaningful ROE % only.

Safetek International ROE % Historical Data

The historical data trend for Safetek International'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.

Safetek International ROE % Chart

Safetek International Annual Data
Trend Dec03 Dec04 Dec05
ROE %
- - -

Safetek International Quarterly Data
Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - - - Negative Equity Negative Equity

Competitive Comparison of Safetek International's ROE %

For the Shell Companies subindustry, Safetek International'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.


Safetek International's ROE % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Safetek International's ROE % distribution charts can be found below:

* The bar in red indicates where Safetek International's ROE % falls into.



Safetek International ROE % Calculation

Safetek International's annualized ROE % for the fiscal year that ended in Dec. 2005 is calculated as

ROE %=Net Income (A: Dec. 2005 )/( (Total Stockholders Equity (A: Dec. 2004 )+Total Stockholders Equity (A: Dec. 2005 ))/ count )
=-2.929/( (-0.695+-3.103)/ 2 )
=-2.929/-1.899
=N/A %

Safetek International's annualized ROE % for the quarter that ended in Sep. 2006 is calculated as

ROE %=Net Income (Q: Sep. 2006 )/( (Total Stockholders Equity (Q: Jun. 2006 )+Total Stockholders Equity (Q: Sep. 2006 ))/ count )
=1.384/( (-2.179+-1.645)/ 2 )
=1.384/-1.912
=Negative Equity %

* 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. 2006) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.


Safetek International  (OTCPK:SFIN) 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. 2006 )
=Net Income/Total Stockholders Equity
=1.384/-1.912
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1.384 / 0)*(0 / 0.3565)*(0.3565 / -1.912)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*N/A
=ROA %*Equity Multiplier
=N/A %*N/A
=Negative Equity %

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. 2006 )
=Net Income/Total Stockholders Equity
=1.384/-1.912
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1.384 / 0) * (0 / -0.624) * (-0.624 / 0) * (0 / 0.3565) * (0.3565 / -1.912)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= N/A * 0 * N/A % * 0 * N/A
=Negative Equity %

Note: The net income data used here is four times the quarterly (Sep. 2006) net income data. The Revenue data used here is four times the quarterly (Sep. 2006) 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.


Safetek International ROE % Related Terms

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Safetek International (Safetek International) Business Description

Traded in Other Exchanges
N/A
Address
20 Chapel Street, Brentwood B, Liverpool, GBR, L39AG
Safetek International Inc currently has no operations. Previously, it was engaged in manufacturing prototypes and distributing the final product on behalf of technology developers.

Safetek International (Safetek International) Headlines

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