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Power Solutions International (Power Solutions International) ROE % : Negative Equity% (As of Dec. 2023)


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What is Power Solutions International ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Power Solutions International's annualized net income for the quarter that ended in Dec. 2023 was $33.5 Mil. Power Solutions International's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $-8.1 Mil. Therefore, Power Solutions International's annualized ROE % for the quarter that ended in Dec. 2023 was Negative Equity%.

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

PSIX' s ROE % Range Over the Past 10 Years
Min: -805.15   Med: -3.37   Max: Negative Equity
Current: Negative Equity

During the past 13 years, Power Solutions International's highest ROE % was Negative Equity%. The lowest was -805.15%. And the median was -3.37%.

PSIX's ROE % is ranked better than
99.97% of 2953 companies
in the Industrial Products industry
Industry Median: 6.9 vs PSIX: Negative Equity

Power Solutions International ROE % Historical Data

The historical data trend for Power Solutions International'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.

Power Solutions International ROE % Chart

Power Solutions International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 166.31 -132.87 - Negative Equity Negative Equity

Power Solutions International Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 Negative Equity Negative Equity Negative Equity Negative Equity Negative Equity

Competitive Comparison of Power Solutions International's ROE %

For the Specialty Industrial Machinery subindustry, Power Solutions International'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.


Power Solutions International's ROE % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Power Solutions International's ROE % distribution charts can be found below:

* The bar in red indicates where Power Solutions International's ROE % falls into.



Power Solutions International ROE % Calculation

Power Solutions International'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 )
=26.306/( (-30.372+-3.917)/ 2 )
=26.306/-17.1445
=Negative Equity %

Power Solutions International's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=33.48/( (-12.304+-3.917)/ 2 )
=33.48/-8.1105
=Negative Equity %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.


Power Solutions International  (OTCPK:PSIX) 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
=33.48/-8.1105
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(33.48 / 419.02)*(419.02 / 294.893)*(294.893 / -8.1105)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.99 %*1.4209*N/A
=ROA %*Equity Multiplier
=11.35 %*N/A
=Negative Equity %

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
=33.48/-8.1105
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (33.48 / 34.956) * (34.956 / 49.336) * (49.336 / 419.02) * (419.02 / 294.893) * (294.893 / -8.1105)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9578 * 0.7085 * 11.77 % * 1.4209 * N/A
=Negative Equity %

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


Power Solutions International ROE % Related Terms

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


Power Solutions International (Power Solutions International) Business Description

Traded in Other Exchanges
N/A
Address
201 Mittel Drive, Wood Dale, IL, USA, 60191
Power Solutions International Inc is an America-based company that manufactures, distributes, and services power systems that primarily run on nondiesel fuels, including natural gas, propane, and gasoline. The company's products are designed to meet emission standards imposed by environmental regulatory bodies like the Environmental Protection Agency. Its products are distributed to a wide range of industrial original equipment manufacturers that supply equipment to sectors including power generation, oil and gas, material handling, airport ground support, agricultural, turf, construction, and irrigation. The company generates most of its sales from United States.
Executives
Gary S Winemaster director, 10 percent owner, officer: See Remarks 231 EAST COLONIAL DRIVE, VERNON HILLS IL 60061
Fuzhang Yu director 201 MITTEL DRIVE, WOOD DALE IL 60191
Neil Gagnon 10 percent owner 1370 AVENUE OF THE AMERICAS, 24TH FLOOR, NEW YORK NY 10019
Jiwen Zhang director 201 MITTEL DRIVE, WOOD DALE IL 60191
Gengsheng Zhang director 201 MITTEL DRIVE, WOOD DALE IL 60191
Xun Li officer: Chief Financial Officer 201 MITTEL DRIVE, WOOD DALE IL 60191
Junhua Gu officer: See Remarks 201 MITTEL DRIVE, WOOD DALE IL 60191
Matthew Joseph Thomas officer: See Remarks 201 MITTEL DRIVE, WOOD DALE IL 60191
Fabrizio Mozzi director 201 MITTEL DRIVE, WOOD DALE IL 60191
Lei Lei director 201 MITTEL DRIVE, WOOD DALE IL 60191
Xykis Constantine officer: Chief Technology Officer 201 MITTEL DRIVE, WOOD DALE IL 60191
Sidong Shao director C/O 200 WEST MITTEL DRIVE, WOOD DALE IL 60191
Xinghao Li director C/O 200 WEST MITTEL DRIVE, WOOD DALE IL 60191
Hong He director 201 MITTEL DRIVE, WOOD DALE IL 60191
Lance Michael Arnett officer: Chief Commercial Officer 201 MITTEL DRIVE, WOOD DALE IL 60191