Energy Developments (ASX:ENE) ROE % : 20.54% (As of Jun. 2015)

Energy Developments ROE % Chart

Energy Developments Annual Data
	Trend	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14	Jun15
ROE %		Get a 7-Day Free Trial					-10.50	3.49	18.85	12.96	15.12

Energy Developments Semi-Annual Data
	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
ROE %	Get a 7-Day Free Trial															21.96	13.05	14.14	10.45	20.54

Competitive Comparison of Energy Developments's ROE %

For the Utilities - Regulated Electric subindustry, Energy Developments'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.

Energy Developments's ROE % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Energy Developments's ROE % distribution charts can be found below:

* The bar in red indicates where Energy Developments's ROE % falls into.

Energy Developments ROE % Calculation

Energy Developments's annualized ROE % for the fiscal year that ended in Jun. 2015 is calculated as

Energy Developments's annualized ROE % for the quarter that ended in Jun. 2015 is calculated as

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

Energy Developments  (ASX:ENE) 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:

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:

Note: The net income data used here is two times the semi-annual (Jun. 2015) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.

Energy Developments ROE % Related Terms

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Energy Developments (ASX:ENE) Business Description