Return on Equity (ROE)
since 2005
Calculation
EMC Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to EMC Corporation1 | ÷ | Total EMC Corporation’s shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 9.41% | = | 100 | × | 1,990) | ÷ | 21,140) |
| Dec 31, 2014 | 12.39% | = | 100 | × | 2,714) | ÷ | 21,896) |
| Dec 31, 2013 | 12.95% | = | 100 | × | 2,889) | ÷ | 22,301) |
| Dec 31, 2012 | 12.22% | = | 100 | × | 2,733) | ÷ | 22,357) |
| Dec 31, 2011 | 12.98% | = | 100 | × | 2,461) | ÷ | 18,959) |
| Dec 31, 2010 | 10.92% | = | 100 | × | 1,900) | ÷ | 17,404) |
| Dec 31, 2009 | 7.00% | = | 100 | × | 1,088) | ÷ | 15,550) |
| Dec 31, 2008 | 10.32% | = | 100 | × | 1,346) | ÷ | 13,042) |
| Dec 31, 2007 | 13.30% | = | 100 | × | 1,666) | ÷ | 12,521) |
| Dec 31, 2006 | 11.85% | = | 100 | × | 1,224) | ÷ | 10,326) |
| Dec 31, 2005 | 9.39% | = | 100 | × | 1,133) | ÷ | 12,065) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The Return on Equity (ROE) exhibited notable volatility between 2005 and 2015, characterized by two distinct cycles of growth and contraction. An initial upward trajectory peaked in 2007, followed by a significant trough in 2009, and a subsequent recovery phase that lasted until 2013 before trending downward in the final two years of the observed period.
- Net Income Dynamics
- Net income showed an overall increase from 1,133 million USD in 2005 to a peak of 2,889 million USD in 2013. A marked contraction occurred between 2007 and 2009, during which income fell from 1,666 million USD to 1,088 million USD. This was followed by a period of sustained growth, with income rising steadily for four consecutive years before declining to 1,990 million USD by 2015.
- Shareholders' Equity Growth
- Total shareholders' equity expanded significantly over the decade, rising from 12,065 million USD in 2005 to a peak of 22,357 million USD in 2012. Following this peak, equity levels remained relatively stable, experiencing a slight contraction to 21,140 million USD by 2015. The substantial increase in the equity base suggests a long-term accumulation of capital and retained earnings.
- ROE Performance and Correlation
- ROE fluctuated between a low of 7.00% in 2009 and a high of 13.30% in 2007. The ROE trend correlates closely with net income movements, particularly during the sharp decline in 2009 and the recovery through 2013. The decrease in ROE to 9.41% in 2015 was primarily driven by the reduction in net income, as the shareholders' equity base remained relatively constant, indicating a decline in the efficiency of profit generation relative to equity investment in the final year.
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Comparison to Competitors
EMC Corp., ROE, long-term trends, comparison to competitors
| EMC Corp. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 9.41% | — | 13.74% | 18.09% | 28.94% | 18.70% | 86.88% | 12.85% | 8.46% | 23.57% | 14.27% | 16.78% | 30.02% |
| Dec 31, 2014 | 12.39% | -215.51% | 13.23% | 13.62% | 8.11% | 20.95% | 15.88% | 12.57% | 6.74% | 28.27% | 9.87% | 20.34% | 27.15% |
| Dec 31, 2013 | 12.95% | -15.26% | 14.21% | 3.61% | 19.13% | 16.51% | 15.60% | 2.54% | 6.84% | 13.02% | 11.65% | 18.99% | 20.01% |
| Dec 31, 2012 | 12.22% | -219.89% | 15.63% | 1.51% | 23.27% | 21.49% | 22.80% | 3.29% | 12.27% | -13.40% | 14.02% | 18.22% | 16.05% |
| Dec 31, 2011 | 12.98% | 30.88% | 22.85% | 21.89% | 27.52% | 28.19% | 27.77% | 29.30% | 16.37% | 1.97% | 7.96% | 15.81% | 20.42% |
| Dec 31, 2010 | 10.92% | 46.50% | 22.25% | 12.44% | 27.57% | 23.19% | 9.45% | 19.61% | 8.00% | 23.07% | -2.55% | 15.57% | 30.93% |
| Dec 31, 2009 | 7.00% | 46.91% | 9.80% | -4.30% | -4.23% | 10.48% | -23.96% | -20.79% | 3.85% | -39.43% | -1.25% | 7.84% | 15.12% |
| Dec 31, 2008 | 10.32% | — | 32.49% | 12.73% | — | 13.54% | 12.04% | 24.70% | -3.35% | -26.21% | 30.47% | 17.61% | 20.59% |
| Dec 31, 2007 | 13.30% | -113.01% | 21.25% | 21.87% | — | 16.31% | 14.88% | 58.30% | -0.37% | -4.13% | 22.36% | 20.86% | 26.64% |
| Dec 31, 2006 | 11.85% | -2.87% | 15.99% | 22.80% | — | 13.72% | 10.66% | 24.05% | 10.88% | 5.03% | 20.76% | 18.42% | 38.21% |
| Dec 31, 2005 | 9.39% | 4.94% | 11.24% | 13.55% | — | 23.95% | 15.33% | 28.06% | 5.67% | 3.22% | 8.52% | 19.27% | 19.47% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
EMC Corp., ROE, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| EMC Corp. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2015 | 9.41% | 18.69% |
| Dec 31, 2014 | 12.39% | 19.37% |
| Dec 31, 2013 | 12.95% | 15.49% |
| Dec 31, 2012 | 12.22% | 14.85% |
| Dec 31, 2011 | 12.98% | 21.32% |
| Dec 31, 2010 | 10.92% | 20.49% |
| Dec 31, 2009 | 7.00% | 5.22% |
| Dec 31, 2008 | 10.32% | 9.53% |
| Dec 31, 2007 | 13.30% | 13.17% |
| Dec 31, 2006 | 11.85% | 16.33% |
| Dec 31, 2005 | 9.39% | 18.14% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
EMC Corp., ROE, long-term trends, comparison to industry (information technology)
| EMC Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2015 | 9.41% | 25.97% |
| Dec 31, 2014 | 12.39% | 25.43% |
| Dec 31, 2013 | 12.95% | 24.73% |
| Dec 31, 2012 | 12.22% | 26.09% |
| Dec 31, 2011 | 12.98% | 29.03% |
| Dec 31, 2010 | 10.92% | 27.62% |
| Dec 31, 2009 | 7.00% | 20.05% |
| Dec 31, 2008 | 10.32% | 25.24% |
| Dec 31, 2007 | 13.30% | 23.67% |
| Dec 31, 2006 | 11.85% | 22.58% |
| Dec 31, 2005 | 9.39% | 21.92% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).