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Aveo Healthcare (ASX:AEH) ROE % : -2.90% (As of Dec. 2013)


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What is Aveo Healthcare ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Aveo Healthcare's annualized net income for the quarter that ended in Dec. 2013 was A$-5.58 Mil. Aveo Healthcare's average Total Stockholders Equity over the quarter that ended in Dec. 2013 was A$192.21 Mil. Therefore, Aveo Healthcare's annualized ROE % for the quarter that ended in Dec. 2013 was -2.90%.

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

ASX:AEH's ROE % is not ranked *
in the Real Estate industry.
Industry Median: 2.73
* Ranked among companies with meaningful ROE % only.

Aveo Healthcare ROE % Historical Data

The historical data trend for Aveo Healthcare'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.

Aveo Healthcare ROE % Chart

Aveo Healthcare Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.84 8.55 15.38 -19.37 -1.66

Aveo Healthcare Semi-Annual Data
Jun04 Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13
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 11.01 -49.52 -4.72 1.43 -2.90

Competitive Comparison of Aveo Healthcare's ROE %

For the Real Estate Services subindustry, Aveo Healthcare'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.


Aveo Healthcare's ROE % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Aveo Healthcare's ROE % distribution charts can be found below:

* The bar in red indicates where Aveo Healthcare's ROE % falls into.



Aveo Healthcare ROE % Calculation

Aveo Healthcare's annualized ROE % for the fiscal year that ended in Jun. 2013 is calculated as

ROE %=Net Income (A: Jun. 2013 )/( (Total Stockholders Equity (A: Jun. 2012 )+Total Stockholders Equity (A: Jun. 2013 ))/ count )
=-3.264/( (200.701+193.08)/ 2 )
=-3.264/196.8905
=-1.66 %

Aveo Healthcare's annualized ROE % for the quarter that ended in Dec. 2013 is calculated as

ROE %=Net Income (Q: Dec. 2013 )/( (Total Stockholders Equity (Q: Jun. 2013 )+Total Stockholders Equity (Q: Dec. 2013 ))/ count )
=-5.576/( (193.08+191.347)/ 2 )
=-5.576/192.2135
=-2.90 %

* 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 two times the semi-annual (Dec. 2013) net income data. ROE % is displayed in the 30-year financial page.


Aveo Healthcare  (ASX:AEH) 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: Dec. 2013 )
=Net Income/Total Stockholders Equity
=-5.576/192.2135
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-5.576 / 10.626)*(10.626 / 611.581)*(611.581 / 192.2135)
=Net Margin %*Asset Turnover*Equity Multiplier
=-52.48 %*0.0174*3.1818
=ROA %*Equity Multiplier
=-0.91 %*3.1818
=-2.90 %

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: Dec. 2013 )
=Net Income/Total Stockholders Equity
=-5.576/192.2135
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-5.576 / -11.452) * (-11.452 / -9.606) * (-9.606 / 10.626) * (10.626 / 611.581) * (611.581 / 192.2135)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.4869 * 1.1922 * -90.4 % * 0.0174 * 3.1818
=-2.90 %

Note: The net income data used here is two times the semi-annual (Dec. 2013) net income data. The Revenue data used here is two times the semi-annual (Dec. 2013) 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.


Aveo Healthcare ROE % Related Terms

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


Aveo Healthcare (ASX:AEH) Business Description

Traded in Other Exchanges
N/A
Address
Aveo Healthcare Ltd provides retirement communities in South-East Queensland. The Company's healthcare's portfolio comprises five retirement villages, located in Albany Creet, Clayfield, Cleveland, Durack and Taringa.

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