ZTNO (Zoom Technologies) ROE %: -16.00% (As of Mar. 2014)


What is Zoom Technologies ROE %?

Zoom Technologies ZTNO -98.33% ROE % is -16.00% as of Mar. 2014.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zoom Technologies's annualized net income for the quarter that ended in Mar. 2014 was $-1.94 Mil. Zoom Technologies's average Total Stockholders Equity over the quarter that ended in Mar. 2014 was $12.15 Mil. Therefore, Zoom Technologies's annualized ROE % for the quarter that ended in Mar. 2014 was -16.00%.

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

ZTNO's ROE % is not ranked *
in the Hardware industry.
Industry Median: 4.61
* Ranked among companies with meaningful ROE % only.

Zoom Technologies  (OTCPK:ZTNO) 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: Mar. 2014 )
=Net Income/Total Stockholders Equity
=-1.944/12.1475
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1.944 / 0)*(0 / 169.5505)*(169.5505 / 12.1475)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*13.9576
=ROA %*Equity Multiplier
=N/A %*13.9576
=-16.00 %

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: Mar. 2014 )
=Net Income/Total Stockholders Equity
=-1.944/12.1475
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1.944 / -2.556) * (-2.556 / -1.66) * (-1.66 / 0) * (0 / 169.5505) * (169.5505 / 12.1475)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7606 * 1.5398 * N/A % * 0 * 13.9576
=-16.00 %

Note: The net income data used here is four times the quarterly (Mar. 2014) net income data. The Revenue data used here is four times the quarterly (Mar. 2014) 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.

Zoom Technologies ROE % Related Terms

Zoom Technologies ROE % Historical Data

* Premium members only.

The historical data trend for Zoom 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.

Zoom Technologies ROE % Chart

Zoom Technologies Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 48.15 31.97 8.63 -50.43 -119.49

Zoom Technologies Quarterly Data
Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14
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 -11.27 -21.74 -131.66 -338.66 -16.00

ZTNO vs OSAT, GTXO, DGDM: ROE % Comparison

For the Communication Equipment subindustry, Zoom 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.

Zoom Technologies ROE % vs Hardware Industry

For the Hardware industry and Technology sector, Zoom Technologies's ROE % distribution charts can be found below:

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


Zoom Technologies ROE % Calculation

Zoom Technologies's annualized ROE % for the fiscal year that ended in Dec. 2013 is calculated as

ROE %=Net Income (A: Dec. 2013 )/( (Total Stockholders Equity (A: Dec. 2012 )+Total Stockholders Equity (A: Dec. 2013 ))/ count )
=-38.862/( (52.768+12.281)/ 2 )
=-38.862/32.5245
=-119.49 %

Zoom Technologies's annualized ROE % for the quarter that ended in Mar. 2014 is calculated as

ROE %=Net Income (Q: Mar. 2014 )/( (Total Stockholders Equity (Q: Dec. 2013 )+Total Stockholders Equity (Q: Mar. 2014 ))/ count )
=-1.944/( (12.281+12.014)/ 2 )
=-1.944/12.1475
=-16.00 %

* 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 (Mar. 2014) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -16.00% mean?
Zoom Technologies (ZTNO) has a ROE % of -16.00% as of Mar. 2014. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zoom Technologies and its competitors.
Is Zoom Technologies' ROE % too high?
Zoom Technologies' current ROE % is -16.00%.
How does Zoom Technologies' ROE % compare to OSAT and GTXO?
Zoom Technologies' ROE % of -16.00% can be compared against companies in the Hardware industry. The industry median ROE % is 4.61. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Hardware company?
The median ROE % among Hardware companies is 4.61, based on 2,423 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zoom Technologies and its competitors. For the Hardware industry, the median ROE % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Technologies's current ROE % is -16.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoom Technologies stock overvalued right now?
Zoom Technologies (ZTNO) has a current ROE % of -16.00%. The current ROE % is -16.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Zoom Technologies (ZTNO), the current ROE % is -16.00% as of Mar. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Zoom Technologies Business Description

Address Sanlitun SOHO, Building A, 11th Floor, No. 8 Worker Stadium North Road, Chaoyang District, Beijing, CHN, 10027
Zoom Technologies Inc designs, produces, markets, sales and supports broadband and dial-up modems, Voice over Internet Protocol or VoIP products and services, Bluetooth wireless products, and other communication-related products. It is engaged in mobile platform video game development, manufacturing, research and development, and sales of electronic components for third generation mobile phones, wireless communication circuitry, GPS equipment, and related software products.