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Educational Development (Educational Development) ROE %

: 17.11% (As of Nov. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Educational Development's annualized net income for the quarter that ended in Nov. 2023 was $7.89 Mil. Educational Development's average Total Stockholders Equity over the quarter that ended in Nov. 2023 was $46.10 Mil. Therefore, Educational Development's annualized ROE % for the quarter that ended in Nov. 2023 was 17.11%.

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

EDUC' s ROE % Range Over the Past 10 Years
Min: -5.45   Med: 19.6   Max: 36.25
Current: 0.53

During the past 13 years, Educational Development's highest ROE % was 36.25%. The lowest was -5.45%. And the median was 19.60%.

EDUC's ROE % is ranked worse than
56.55% of 985 companies
in the Media - Diversified industry
Industry Median: 2.37 vs EDUC: 0.53

Educational Development ROE % Historical Data

The historical data trend for Educational Development'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.

Educational Development Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.83 20.41 36.25 19.09 -5.45

Educational Development Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only 0.01 -16.67 -7.84 9.55 17.11

Competitive Comparison

For the Publishing subindustry, Educational Development'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.


Educational Development ROE % Distribution

For the Media - Diversified industry and Communication Services sector, Educational Development's ROE % distribution charts can be found below:

* The bar in red indicates where Educational Development's ROE % falls into.



Educational Development ROE % Calculation

Educational Development's annualized ROE % for the fiscal year that ended in Feb. 2023 is calculated as

ROE %=Net Income (A: Feb. 2023 )/( (Total Stockholders Equity (A: Feb. 2022 )+Total Stockholders Equity (A: Feb. 2023 ))/ count )
=-2.505/( (46.766+45.232)/ 2 )
=-2.505/45.999
=-5.45 %

Educational Development's annualized ROE % for the quarter that ended in Nov. 2023 is calculated as

ROE %=Net Income (Q: Nov. 2023 )/( (Total Stockholders Equity (Q: Aug. 2023 )+Total Stockholders Equity (Q: Nov. 2023 ))/ count )
=7.888/( (45.084+47.115)/ 2 )
=7.888/46.0995
=17.11 %

* 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 (Nov. 2023) net income data. ROE % is displayed in the 30-year financial page.


Educational Development  (NAS:EDUC) 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: Nov. 2023 )
=Net Income/Total Stockholders Equity
=7.888/46.0995
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(7.888 / 67.78)*(67.78 / 97.23)*(97.23 / 46.0995)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.64 %*0.6971*2.1091
=ROA %*Equity Multiplier
=8.11 %*2.1091
=17.11 %

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: Nov. 2023 )
=Net Income/Total Stockholders Equity
=7.888/46.0995
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (7.888 / 10.784) * (10.784 / -3.764) * (-3.764 / 67.78) * (67.78 / 97.23) * (97.23 / 46.0995)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7315 * -2.865 * -5.55 % * 0.6971 * 2.1091
=17.11 %

Note: The net income data used here is four times the quarterly (Nov. 2023) net income data. The Revenue data used here is four times the quarterly (Nov. 2023) 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.


Educational Development ROE % Related Terms

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Educational Development (Educational Development) Business Description

Traded in Other Exchanges
N/A
Address
5402 South 122nd East Avenue, Tulsa, OK, USA, 74146
Educational Development Corp is the United States trade publisher of the line of educational children's books produced in the United Kingdom. Its business activity functions with two reportable segments: Direct Sales Division segment and Publishing Division segment. The Publishing Division segment markets its products to retail accounts, which include the book, school supplies, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers and an internal telesales group. The Direct Sales Division segment sells their books and products through independent brand partners direct to the customer. It derives a majority of revenue from the Direct sales division segment.
Executives
O Keefe Daniel E officer: Chief Financial Officer 1221 E HOUSTON, BROKEN ARROW OK 74012
Heather N. Cobb officer: Chief Sales & Marketing Offcr 5402 S. 122ND ST. EAST AVE., TULSA OK 74137
Craig M White officer: VP, Operations 10302 E 55TH PL, TULSA OK 74146
Bradely Von Stoots director 5402 S. 122ND EAST AVE, TULSA OK 74146
Randall W White director, 10 percent owner, officer: President & CEO
Joshua J Peters director 5402 S. 122ND EAST AVE, TULSA OK 74146
Ronald T Mcdaniel officer: Vice President
Besty Richert director 5402 S. 122ND EAST AVE, TULSA OK 74146
Kara Gae Neal director 5402 S. 122ND EAST AVE, TULSA OK 74146
James F Lewis director
G Dean Cosgrove director
William C Fossett officer: Controller & Corporate Secreta
John A Clerico director 3132 S COLUMBIA CIRCLE, TULSA OK 74105
Robert D Berryhill director PO BOX 1120, BIXBY OK 74008
Kathy Slemp officer: Vice President