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Fortress Investment Group LLC (Fortress Investment Group LLC) ROE % : 48.34% (As of Sep. 2017)


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What is Fortress Investment Group LLC ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Fortress Investment Group LLC's annualized net income for the quarter that ended in Sep. 2017 was $355 Mil. Fortress Investment Group LLC's average Total Stockholders Equity over the quarter that ended in Sep. 2017 was $735 Mil. Therefore, Fortress Investment Group LLC's annualized ROE % for the quarter that ended in Sep. 2017 was 48.34%.

The historical rank and industry rank for Fortress Investment Group LLC's ROE % or its related term are showing as below:

FIG's ROE % is not ranked *
in the Asset Management industry.
Industry Median: 4.06
* Ranked among companies with meaningful ROE % only.

Fortress Investment Group LLC ROE % Historical Data

The historical data trend for Fortress Investment Group LLC'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.

Fortress Investment Group LLC ROE % Chart

Fortress Investment Group LLC Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.06 27.62 9.58 8.47 16.64

Fortress Investment Group LLC Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 16.79 52.18 -1.84 15.16 48.34

Competitive Comparison of Fortress Investment Group LLC's ROE %

For the Asset Management subindustry, Fortress Investment Group LLC'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.


Fortress Investment Group LLC's ROE % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Fortress Investment Group LLC's ROE % distribution charts can be found below:

* The bar in red indicates where Fortress Investment Group LLC's ROE % falls into.



Fortress Investment Group LLC ROE % Calculation

Fortress Investment Group LLC's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=94.442/( (570.685+564.241)/ 2 )
=94.442/567.463
=16.64 %

Fortress Investment Group LLC's annualized ROE % for the quarter that ended in Sep. 2017 is calculated as

ROE %=Net Income (Q: Sep. 2017 )/( (Total Stockholders Equity (Q: Jun. 2017 )+Total Stockholders Equity (Q: Sep. 2017 ))/ count )
=355.28/( (832.57+637.346)/ 2 )
=355.28/734.958
=48.34 %

* 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. 2017) net income data. ROE % is displayed in the 30-year financial page.


Fortress Investment Group LLC  (NYSE:FIG) 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. 2017 )
=Net Income/Total Stockholders Equity
=355.28/734.958
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(355.28 / 1017.452)*(1017.452 / 2179.294)*(2179.294 / 734.958)
=Net Margin %*Asset Turnover*Equity Multiplier
=34.92 %*0.4669*2.9652
=ROA %*Equity Multiplier
=16.3 %*2.9652
=48.34 %

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. 2017 )
=Net Income/Total Stockholders Equity
=355.28/734.958
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (355.28 / 948.576) * (948.576 / 25.156) * (25.156 / 1017.452) * (1017.452 / 2179.294) * (2179.294 / 734.958)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.3745 * 37.7077 * 2.47 % * 0.4669 * 2.9652
=48.34 %

Note: The net income data used here is four times the quarterly (Sep. 2017) net income data. The Revenue data used here is four times the quarterly (Sep. 2017) 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.


Fortress Investment Group LLC ROE % Related Terms

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


Fortress Investment Group LLC (Fortress Investment Group LLC) Business Description

Traded in Other Exchanges
N/A
Address
Fortress Investment Group LLC is a diversified global investment management company. It operates as an alternative asset manager, which raises, invests and manages private equity funds and hedge funds. The firm's private equity funds are focused on control-oriented investments, real estate properties, and debt securities. Fortress' hedge fund offerings are composed of liquid hedge funds, which invest in more liquid capital markets, as well as credit-driven private equity and hedge funds, which focus on distressed and undervalued assets. Most of the revenue for the firm is derived from management fees, incentive income based on the performance of the funds and investment income from investments in funds.
Executives
Wesley R Edens director, 10 percent owner, officer: Principal 1345 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10105
Randal A Nardone director, 10 percent owner, officer: Principal and CEO 1345 AVENUE OF THE AMERICAS, 46TH FLOOR, NEW YORK NY 10105
Briger Peter L Jr director, 10 percent owner, officer: Principal 1345 AVENUE OF THE AMERICAS, 46TH FLOOR, NEW YORK NY 10105
Douglas L Jacobs director FLEETBOSTON FINANCIAL CORP, 100 FEDERAL STREET, BOSTON MA 02110
Daniel Bass officer: Chief Financial Officer 1345 AVENUE OF THE AMERICAS, 46TH FLOOR, NEW YORK NY 10105
Richard N Haass director
Robert I Kauffman director, 10 percent owner, officer: President-Europe and Director C/O FIG LLC 1345 AVENUE OF THE AMERICAS, NEW YORK, NY X1 10105
Daniel H Mudd director, officer: Chief Executive Officer 3900 WISCONSIN AVENUE, NW, WASHINGTON DC 20016
Jonathan Brown officer: Chief Accounting Officer 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Howard Rubin director 8401 N CENTRAL EXPRESSWAY, STE 800, DALLAS TX 75225
Takumi Shibata director NOMURA ASSET MANAGEMENT USA, INC., TWO WORLD FINANCIAL CENTER, BUILDING B, NEW YORK NY 10281

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