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American Residential Properties (American Residential Properties) ROE % : -9.14% (As of Sep. 2015)


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What is American Residential Properties ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. American Residential Properties's annualized net income for the quarter that ended in Sep. 2015 was $-48.4 Mil. American Residential Properties's average Total Stockholders Equity over the quarter that ended in Sep. 2015 was $529.9 Mil. Therefore, American Residential Properties's annualized ROE % for the quarter that ended in Sep. 2015 was -9.14%.

The historical rank and industry rank for American Residential Properties's ROE % or its related term are showing as below:

ARPI's ROE % is not ranked *
in the REITs industry.
Industry Median: 4.305
* Ranked among companies with meaningful ROE % only.

American Residential Properties ROE % Historical Data

The historical data trend for American Residential Properties'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.

American Residential Properties ROE % Chart

American Residential Properties Annual Data
Trend Dec12 Dec13 Dec14
ROE %
- -5.33 -6.39

American Residential Properties Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.34 -8.85 -7.85 -6.86 -9.14

Competitive Comparison of American Residential Properties's ROE %

For the REIT - Residential subindustry, American Residential Properties'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.


American Residential Properties's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, American Residential Properties's ROE % distribution charts can be found below:

* The bar in red indicates where American Residential Properties's ROE % falls into.



American Residential Properties ROE % Calculation

American Residential Properties's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=-36.979/( (597.41+560.787)/ 2 )
=-36.979/579.0985
=-6.39 %

American Residential Properties's annualized ROE % for the quarter that ended in Sep. 2015 is calculated as

ROE %=Net Income (Q: Sep. 2015 )/( (Total Stockholders Equity (Q: Jun. 2015 )+Total Stockholders Equity (Q: Sep. 2015 ))/ count )
=-48.44/( (537.469+522.238)/ 2 )
=-48.44/529.8535
=-9.14 %

* 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. 2015) net income data. ROE % is displayed in the 30-year financial page.


American Residential Properties  (NYSE:ARPI) 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. 2015 )
=Net Income/Total Stockholders Equity
=-48.44/529.8535
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-48.44 / 127.868)*(127.868 / 1362.3855)*(1362.3855 / 529.8535)
=Net Margin %*Asset Turnover*Equity Multiplier
=-37.88 %*0.0939*2.5712
=ROA %*Equity Multiplier
=-3.56 %*2.5712
=-9.14 %

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. 2015 )
=Net Income/Total Stockholders Equity
=-48.44/529.8535
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-48.44 / -49.488) * (-49.488 / -49.488) * (-49.488 / 127.868) * (127.868 / 1362.3855) * (1362.3855 / 529.8535)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9788 * 1 * -38.7 % * 0.0939 * 2.5712
=-9.14 %

Note: The net income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) 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.


American Residential Properties ROE % Related Terms

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


American Residential Properties (American Residential Properties) Business Description

Traded in Other Exchanges
N/A
Address
American Residential Properties Inc was incorporated in Maryland in March 2012. The Company acquires, restores, leases and manages single-family homes as rental properties. As of December 31, 2012, it owned 1,775 properties in Arizona, California, Florida, Georgia, Illinois, Nevada and Texas with an aggregate investment of $220.6 million, and managed an additional 606 properties for Phoenix Fund in Arizona and Nevada.
Executives
Keith R Guericke director C/O ESSEX PROPERTY TRUST, 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Todd Mansfield director 3102 WEST END AVENUE,, SUITE 400, NASHVILLE TN 37203
Douglas N Benham director
David M. Brain director 909 WALNUT, SUITE 200, KANSAS CITY MO 64106
Laurie A. Hawkes director, officer: President and COO 7047 EAST GREENWAY PARKWAY, SUITE 350, SCOTTSDALE AZ 85254

American Residential Properties (American Residential Properties) Headlines

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