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Exar (EXAR) ROE % : 68.53% (As of Dec. 2016)


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What is Exar ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Exar's annualized net income for the quarter that ended in Dec. 2016 was $181.5 Mil. Exar's average Total Stockholders Equity over the quarter that ended in Dec. 2016 was $264.9 Mil. Therefore, Exar's annualized ROE % for the quarter that ended in Dec. 2016 was 68.53%.

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

EXAR's ROE % is not ranked *
in the Semiconductors industry.
Industry Median: 4.485
* Ranked among companies with meaningful ROE % only.

Exar ROE % Historical Data

The historical data trend for Exar'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.

Exar ROE % Chart

Exar Annual Data
Trend Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.24 2.35 -18.89 -7.33 22.08

Exar Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 -4.06 16.19 1.73 68.53 2.36

Competitive Comparison of Exar's ROE %

For the Semiconductors subindustry, Exar'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.


Exar's ROE % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Exar's ROE % distribution charts can be found below:

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



Exar ROE % Calculation

Exar's annualized ROE % for the fiscal year that ended in Mar. 2016 is calculated as

ROE %=Net Income (A: Mar. 2016 )/( (Total Stockholders Equity (A: Mar. 2015 )+Total Stockholders Equity (A: Mar. 2016 ))/ count )
=-16.026/( (222.832+214.549)/ 2 )
=-16.026/218.6905
=-7.33 %

Exar's annualized ROE % for the quarter that ended in Dec. 2016 is calculated as

ROE %=Net Income (Q: Dec. 2016 )/( (Total Stockholders Equity (Q: Sep. 2016 )+Total Stockholders Equity (Q: Dec. 2016 ))/ count )
=181.516/( (238.014+291.732)/ 2 )
=181.516/264.873
=68.53 %

* 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 (Dec. 2016) net income data. ROE % is displayed in the 30-year financial page.


Exar  (NYSE:EXAR) 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. 2016 )
=Net Income/Total Stockholders Equity
=181.516/264.873
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(181.516 / 108.888)*(108.888 / 300.818)*(300.818 / 264.873)
=Net Margin %*Asset Turnover*Equity Multiplier
=166.7 %*0.362*1.1357
=ROA %*Equity Multiplier
=60.35 %*1.1357
=68.53 %

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. 2016 )
=Net Income/Total Stockholders Equity
=181.516/264.873
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (181.516 / -1.94) * (-1.94 / -2.468) * (-2.468 / 108.888) * (108.888 / 300.818) * (300.818 / 264.873)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -93.5649 * 0.7861 * -2.27 % * 0.362 * 1.1357
=68.53 %

Note: The net income data used here is four times the quarterly (Dec. 2016) net income data. The Revenue data used here is four times the quarterly (Dec. 2016) 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.


Exar ROE % Related Terms

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


Exar (EXAR) Business Description

Traded in Other Exchanges
N/A
Address
Exar Corp was incorporated in California in April 1971 and was reincorporated in Delaware in 1991. The Company designs, develops and markets high performance analog mixed-signal integrated circuits (ICs) and sub-system solutions for the Industrial and Embedded Systems, High-End Consumer and Infrastructure markets. Applying both analog and digital technologies, its products are deployed in a applications such as industrial, instrumentation and medical equipment, networking and telecommunication systems, servers, enterprise storage systems, flat panel displays, LED lighting solutions, set top boxes and digital video recorders. It provides customers with a breadth of component products and sub-system solutions based on silicon integration. The Company's product portfolio includes Connectivity, Power Management, High Performance Analog, Processors, Flat Panel Display and LED lighting. The Company markets its products with sales offices and personnel located throughout the Americas, Europe, and Asia. Its products are also sold through channel partners, including distributors and manufacturers' representatives. These channel partners are assisted and managed by its regional sales teams. The Company sells products into three primary markets: Industrial and Embedded Systems, High-End Consumer and Infrastructure. Its products are organized into six primary product lines, which allow product definition based on market opportunities and trends. Its product lines include Connectivity, Power Management, High Performance Analog, Processors, Flat Panel Display and LED lighting. Competitors in its Industrial and Embedded Systems and Infrastructure markets include companies such as Analog Devices, Inc., Integrated Device Technology, Inc., Intersil Corporation, Linear Technology Corporation, Maxim Integrated Products, Inc., Monolithic Power Systems, NXP B.V., Silicon Labs, Texas Instruments Incorporated, Micrel Incorporated, Ambarella, Inc., HiSilicon Technologies Co., Ltd., Cavium Networks and Intel. Competitors in High-End Consumer products include companies such as Texas Instruments Incorporated, Intersil Corporation, Chipone, Novatek Microelectronics Corporation and Global Mixed-mode Technology, Inc.
Executives
Gary Meyers director
Ryan A Benton director, officer: Chief Executive Officer 48720 KATO ROAD, FREMONT CA 94538
Behrooz L. Abdi director 1875 CHARLESTON ROAD, MOUNTAIN VIEW CA 94043
James Lougheed officer: Sr. VP, Sales & Marketing 48720 KATO ROAD, FREMONT CA 94538
Jeffrey Jacobowitz director C/O ROBOTTI & COMPANY, 52 VANDERBILT AVENUE, 4TH FLOOR, NEW YORK NY 10017
Louis Dinardo officer: President and CEO 48720 KATO ROAD, FREMONT CA 94538
Parviz Ghaffaripour other: Sr VP & GM, Component Products
Soros Fund Management Llc 10 percent owner 250 WEST 55TH STREET, FLOOR 29, NEW YORK NY 10019
Robert Soros 10 percent owner C/O SOROS FUND MANAGEMENT LLC, 250 WEST 55TH STREET, FLOOR 38, NEW YORK NY 10019
George Soros 10 percent owner C/O SOROS FUND MANAGEMENT LLC, 250 WEST 55TH STREET, FLOOR 29, NEW YORK NY 10019
Kevin S Bauer officer: CFO 980 ROCK AVE., SAN JOSE CA 95131
Soros Jonathan T Allan 10 percent owner C/O JS CAPITAL MANAGEMENT LLC, 888 SEVENTH AVENUE, FLOOR 40, NEW YORK NY 10106
Juan Oscar Rodriguez director 5200 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
John S Mcfarlane director C/O PITNEY BOWES, 1 ELMCROFT RD, STAMFORD CT 06926
Guy W Adams director 433 N. CAMDEN DR., #810, BEVERLY HILLS CA 90210

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