Altera (FRA:ALR) ROE % : 7.38% (As of Sep. 2015)

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What is Altera ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Altera's annualized net income for the quarter that ended in Sep. 2015 was €219 Mil. Altera's average Total Stockholders Equity over the quarter that ended in Sep. 2015 was €2,972 Mil. Therefore, Altera's annualized ROE % for the quarter that ended in Sep. 2015 was 7.38%.

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

FRA:ALR' s ROE % Range Over the Past 10 Years
Min: 10.18 Med: 23.02 Max: 45.93
Current: 10.18

During the past 13 years, Altera's highest ROE % was 45.93%. The lowest was 10.18%. And the median was 23.02%.

FRA:ALR's ROE % is not ranked
in the Semiconductors industry.
Industry Median: 4.4 vs FRA:ALR: 10.18

Altera ROE % Historical Data

The historical data trend for Altera'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.

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Altera ROE % Chart

Altera Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROE %

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47.33

29.05

17.62

12.59

14.66

Altera Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
ROE %	Get a 7-Day Free Trial															14.43	13.74	12.27	8.34	7.38

Competitive Comparison of Altera's ROE %

For the Semiconductors subindustry, Altera'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.

Altera's ROE % Distribution in the Semiconductors Industry

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

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

Altera ROE % Calculation

Altera's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %	=	Net Income (A: Dec. 2014 )	/	( (Total Stockholders Equity (A: Dec. 2013 )	+	Total Stockholders Equity (A: Dec. 2014 ))	/ count )
	=	383.326	/	( (2563.809	+	2664.805)	/ 2 )
	=	383.326	/	2614.307
	=	14.66 %

Altera's annualized ROE % for the quarter that ended in Sep. 2015 is calculated as

ROE %	=	Net Income (Q: Sep. 2015 )	/	( (Total Stockholders Equity (Q: Jun. 2015 )	+	Total Stockholders Equity (Q: Sep. 2015 ))	/ count )
	=	219.252	/	( (2957.936	+	2987.043)	/ 2 )
	=	219.252	/	2972.4895
	=	7.38 %

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

Altera (FRA:ALR) 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. 2015 )
=	Net Income	/	Total Stockholders Equity
=	219.252	/	2972.4895
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(219.252 / 1424.056)	*	(1424.056 / 5198.825)	*	(5198.825 / 2972.4895)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	15.4 %	*	0.2739	*	1.749
=	ROA %	*	Equity Multiplier
=	4.22 %	*	1.749
=	7.38 %

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. 2015 )
=	Net Income	/	Total Stockholders Equity
=	219.252	/	2972.4895
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(219.252 / 278.792)	*	(278.792 / 314.284)	*	(314.284 / 1424.056)	*	(1424.056 / 5198.825)	*	(5198.825 / 2972.4895)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.7864	*	0.8871	*	22.07 %	*	0.2739	*	1.749
=	7.38 %

Note: The net income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 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.

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.

Altera ROE % Related Terms

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Altera (FRA:ALR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Altera Corp (FRA:ALR) » Definitions » ROE %

Comparable Companies

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Address

Website

http://www.altera.com

Altera Corp was founded in 1983 and reincorporated in the State of Delaware in 1997. It designs and sells programmable logic devices, HardCopy application-specific integrated circuit devices, power system-on-chip devices, pre-defined design building blocks known as intellectual property cores, and associated development tools. Its PLDs, which consist of field-programmable gate arrays, including those referred to as systems-on-chip FPGAs which incorporate hard embedded processor cores, and complex programmable logic devices. FPGAs and CPLDs are standard semiconductor integrated circuits that are manufactured as standard chips that its customers program to perform desired logic and processing functions within their electronic systems. With its HardCopy devices it offers its customers a migration path from a PLD to a low-cost, high-volume, non-programmable implementation of their designs. Its customers can license IP cores for implementation of standard functions in their PLD designs. Customers develop, compile, and verify their PLD designs, and then program their designs into its PLDs using its proprietary development software, which operates on personal computers and engineering workstations. Its products serve a range of customers within the Telecom and Wireless, Industrial Automation, Military and Automotive, Networking, Computer and Storage and Other vertical markets. Its geographical segments include US, Japan, China, Europe and Other. Its customers design electronic systems that typically use three types of digital integrated circuits: Processors, which include microprocessors, microcontrollers, graphics processors, and digital signal processors, control central computing tasks and signal processing; Memory stores programming instructions and data; and Logic manages the interchange and manipulation of digital signals within a system. It classifies its products into three categories: New, Mainstream, and Mature and Other Products. New Products include the Stratix V, Stratix IV, Arria 10, Arria V, Arria II, Cyclone V, Cyclone IV, MAX 10 FPGAs, MAX V CPLDs, HardCopy IV devices and Enpirion PowerSoCs. Mainstream Products include the Stratix III, Cyclone III, MAX II and HardCopy III devices. Mature and Other Products include the Stratix II, Stratix, Arria GX, Cyclone II, Cyclone, Classic, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEXseries, APEX series, Mercury, Excalibur devices, configuration and other devices, intellectual property cores, and software and other tools. The Company competes with PLD vendors such as Lattice Semiconductor Corporation, Microsemi Corporation, and Xilinx Inc. Other semiconductor companies with whom it may compete includes Analog Devices Inc., Atmel Corporation, Avago Technologies, Broadcom Corporation, Cavium, Inc., Freescale Semiconductor Inc., GlobalFoundries Inc., HiSilicon Technologies Company, Intel Corporation ("Intel"), Linear Technology Corporation