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Barka Desalination Co (MUS:BRDE) ROE % : 3.85% (As of Dec. 2023)


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What is Barka Desalination Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Barka Desalination Co's annualized net income for the quarter that ended in Dec. 2023 was ر.ع0.71 Mil. Barka Desalination Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was ر.ع18.33 Mil. Therefore, Barka Desalination Co's annualized ROE % for the quarter that ended in Dec. 2023 was 3.85%.

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

MUS:BRDE' s ROE % Range Over the Past 10 Years
Min: 3.85   Med: 9.98   Max: 9.99
Current: 3.85

During the past 3 years, Barka Desalination Co's highest ROE % was 9.99%. The lowest was 3.85%. And the median was 9.98%.

MUS:BRDE's ROE % is ranked worse than
75.1% of 514 companies
in the Utilities - Regulated industry
Industry Median: 8.495 vs MUS:BRDE: 3.85

Barka Desalination Co ROE % Historical Data

The historical data trend for Barka Desalination Co'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.

Barka Desalination Co ROE % Chart

Barka Desalination Co Annual Data
Trend Dec21 Dec22 Dec23
ROE %
9.98 9.99 3.85

Barka Desalination Co Semi-Annual Data
Dec21 Dec22 Dec23
ROE % 9.98 9.99 3.85

Competitive Comparison of Barka Desalination Co's ROE %

For the Utilities - Regulated Water subindustry, Barka Desalination Co'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.


Barka Desalination Co's ROE % Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where Barka Desalination Co's ROE % falls into.



Barka Desalination Co ROE % Calculation

Barka Desalination Co's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=0.706/( (18.651+18.005)/ 2 )
=0.706/18.328
=3.85 %

Barka Desalination Co's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Dec. 2022 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=0.706/( (18.651+18.005)/ 2 )
=0.706/18.328
=3.85 %

* 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 one times the annual (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Barka Desalination Co  (MUS:BRDE) 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. 2023 )
=Net Income/Total Stockholders Equity
=0.706/18.328
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.706 / 19.467)*(19.467 / 106.7055)*(106.7055 / 18.328)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.63 %*0.1824*5.822
=ROA %*Equity Multiplier
=0.66 %*5.822
=3.85 %

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. 2023 )
=Net Income/Total Stockholders Equity
=0.706/18.328
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.706 / 1.387) * (1.387 / 4.968) * (4.968 / 19.467) * (19.467 / 106.7055) * (106.7055 / 18.328)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.509 * 0.2792 * 25.52 % * 0.1824 * 5.822
=3.85 %

Note: The net income data used here is one times the annual (Dec. 2023) net income data. The Revenue data used here is one times the annual (Dec. 2023) 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.


Barka Desalination Co ROE % Related Terms

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Barka Desalination Co (MUS:BRDE) Business Description

Traded in Other Exchanges
N/A
Address
Al Wilaj Street, Way No 1013 Al Qurm, PO Box 252, Building No 1022, Office No 16, 1st Floor, Bousher, Muscat, OMN, 103
Barka Desalination Co is engaged in operation of seawater desalination plant in Oman. The objectives of the Company are to acquire, develop, finance, design, construct, operate, maintain a desalination facility at Barka Independent Water Project, a sea water reverse osmosis (SWRO) plant located in Barka, South Batinah Governorate, Sultanate of Oman.

Barka Desalination Co (MUS:BRDE) Headlines

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