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Life Technologies (FRA:IVN) ROE % : 9.59% (As of Sep. 2013)


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What is Life Technologies ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Life Technologies's annualized net income for the quarter that ended in Sep. 2013 was €354 Mil. Life Technologies's average Total Stockholders Equity over the quarter that ended in Sep. 2013 was €3,688 Mil. Therefore, Life Technologies's annualized ROE % for the quarter that ended in Sep. 2013 was 9.59%.

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

FRA:IVN's ROE % is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: -6.34
* Ranked among companies with meaningful ROE % only.

Life Technologies ROE % Historical Data

The historical data trend for Life Technologies'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.

Life Technologies ROE % Chart

Life Technologies Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.22 3.73 9.35 8.40 9.33

Life Technologies Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
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 5.59 9.41 10.45 10.56 9.59

Competitive Comparison of Life Technologies's ROE %

For the Diagnostics & Research subindustry, Life Technologies'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.


Life Technologies's ROE % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Life Technologies's ROE % distribution charts can be found below:

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



Life Technologies ROE % Calculation

Life Technologies's annualized ROE % for the fiscal year that ended in Dec. 2012 is calculated as

ROE %=Net Income (A: Dec. 2012 )/( (Total Stockholders Equity (A: Dec. 2011 )+Total Stockholders Equity (A: Dec. 2012 ))/ count )
=328.312/( (3495.412+3545.343)/ 2 )
=328.312/3520.3775
=9.33 %

Life Technologies's annualized ROE % for the quarter that ended in Sep. 2013 is calculated as

ROE %=Net Income (Q: Sep. 2013 )/( (Total Stockholders Equity (Q: Jun. 2013 )+Total Stockholders Equity (Q: Sep. 2013 ))/ count )
=353.792/( (3653.464+3722.468)/ 2 )
=353.792/3687.966
=9.59 %

* 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. 2013) net income data. ROE % is displayed in the 30-year financial page.


Life Technologies  (FRA:IVN) 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. 2013 )
=Net Income/Total Stockholders Equity
=353.792/3687.966
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(353.792 / 2797.788)*(2797.788 / 6389.9405)*(6389.9405 / 3687.966)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.65 %*0.4378*1.7326
=ROA %*Equity Multiplier
=5.54 %*1.7326
=9.59 %

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. 2013 )
=Net Income/Total Stockholders Equity
=353.792/3687.966
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (353.792 / 401.796) * (401.796 / 497.164) * (497.164 / 2797.788) * (2797.788 / 6389.9405) * (6389.9405 / 3687.966)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8805 * 0.8082 * 17.77 % * 0.4378 * 1.7326
=9.59 %

Note: The net income data used here is four times the quarterly (Sep. 2013) net income data. The Revenue data used here is four times the quarterly (Sep. 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.


Life Technologies ROE % Related Terms

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


Life Technologies (FRA:IVN) Business Description

Traded in Other Exchanges
N/A
Address
Life Technologies Corp began operations as a California partnership in 1987 and incorporated in California in 1989. In 1997, the Company reincorporated as a Delaware corporation. On November 21, 2008, Invitrogen Corporation, a predecessor company to Life Technologies, completed the acquisition of Applied Biosystems, Inc. to form a new company called Life Technologies Corporation. The Company is a global life sciences company dedicated to improving the human condition. The Company's systems, consumables and services enable researchers and commercial markets to accelerate scientific exploration, to discoveries and developments that better the quality of life. The Company's products are also used in forensics, food and water testing and other industrial applications. The Company delivers a range of products and services, including systems, instruments, reagents, software, and custom services. Its growing portfolio of products includes innovative technologies for capillary electrophoresis-based sequencing, next generation sequencing, PCR, sample preparation, cell culture, RNA interference analysis, functional genomics research, proteomics and cell biology applications, as well as clinical diagnostic applications, forensics and animal, food, pharmaceutical and water testing analysis. The Company also provides its customers convenient and value-added purchasing options through thousands of sales and service professionals, e-commerce capabilities and onsite supply center solutions. The Company operates is business under three divisions: Molecular Biology Systems ('MBS'), Cell Systems ('CS'), and Genetic Systems ('GS'). The MBS division includes the molecular biology-based technologies, including basic and real-time PCR, RNAi, DNA synthesis, sample prep, transfection, cloning and protein expression profiling, protein analysis and thermo-cycler instrumentation. The CS division includes all product lines used in the study of cell function, including cell culture media and sera, stem cells and related tools, cellular imaging products, antibodies, drug discovery services and cell therapy related products. The GS division includes capillary electrophoresis systems and reagents and next generation sequencing systems and reagents, including the SOLiDTM and Ion TorrentTM systems, as well as reagent kits developed specifically for applied markets, such as forensics and food safety, animal health and pharmaceutical quality monitoring. The Company offers many different products and services and is continually developing and/or acquiring others. Some of its specific product categories include the following: 'High-throughput' gene cloning and expression technology; Pre-cast electrophoresis products; Antibodies; Magnetic beads; Molecular Probes fluorescence-based technologies; Transfection reagents; PCR and Real Time PCR systems and reagents; and RNA Interference reagents. The Company's manufacturing operations require a variety of raw materials, elec

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