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InterOil (InterOil) ROE % : -14.04% (As of Sep. 2016)


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What is InterOil ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. InterOil's annualized net income for the quarter that ended in Sep. 2016 was $-102.73 Mil. InterOil's average Total Stockholders Equity over the quarter that ended in Sep. 2016 was $731.73 Mil. Therefore, InterOil's annualized ROE % for the quarter that ended in Sep. 2016 was -14.04%.

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

IOC's ROE % is not ranked *
in the Oil & Gas industry.
Industry Median: 7.11
* Ranked among companies with meaningful ROE % only.

InterOil ROE % Historical Data

The historical data trend for InterOil'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.

InterOil ROE % Chart

InterOil Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.41 0.21 -5.35 32.90 -26.47

InterOil Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 -44.70 -39.99 -8.57 -30.15 -14.04

Competitive Comparison of InterOil's ROE %

For the Oil & Gas Refining & Marketing subindustry, InterOil'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.


InterOil's ROE % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, InterOil's ROE % distribution charts can be found below:

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



InterOil ROE % Calculation

InterOil's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=-241.956/( (1028.653+799.673)/ 2 )
=-241.956/914.163
=-26.47 %

InterOil's annualized ROE % for the quarter that ended in Sep. 2016 is calculated as

ROE %=Net Income (Q: Sep. 2016 )/( (Total Stockholders Equity (Q: Jun. 2016 )+Total Stockholders Equity (Q: Sep. 2016 ))/ count )
=-102.728/( (741.651+721.808)/ 2 )
=-102.728/731.7295
=-14.04 %

* 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. 2016) net income data. ROE % is displayed in the 30-year financial page.


InterOil  (NYSE:IOC) 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. 2016 )
=Net Income/Total Stockholders Equity
=-102.728/731.7295
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-102.728 / 28.656)*(28.656 / 1164.2425)*(1164.2425 / 731.7295)
=Net Margin %*Asset Turnover*Equity Multiplier
=-358.49 %*0.0246*1.5911
=ROA %*Equity Multiplier
=-8.82 %*1.5911
=-14.04 %

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. 2016 )
=Net Income/Total Stockholders Equity
=-102.728/731.7295
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-102.728 / -102.232) * (-102.232 / -79.924) * (-79.924 / 28.656) * (28.656 / 1164.2425) * (1164.2425 / 731.7295)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0049 * 1.2791 * -278.91 % * 0.0246 * 1.5911
=-14.04 %

Note: The net income data used here is four times the quarterly (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) 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.


InterOil ROE % Related Terms

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


InterOil (InterOil) Business Description

Traded in Other Exchanges
N/A
Address
InterOil Corp is incorporated and domiciled in Canada and continued under the Business Corporations Act on August 24, 2007. The Company, together with its subsidiaries, is engaged in the exploration and production of oil and gas properties in Papua New Guinea and its surrounding region. Its operations are organized into four business segments: Upstream, Midstream, Downstream and Corporate. Upstream segment explores, appraises and develops hydrocarbon structures in Papua New Guinea with a view to commercializing, monetizing and developing oil and gas structures through production facilities. Midstream segment produces refined petroleum products at Napa Napa in Port Moresby, Papua New Guinea for the domestic market and for export markets. Downstream segment markets and distributes refined petroleum products domestically in Papua New Guinea on a wholesale and retail basis. Corporate segment provides support to the other business segments by engaging in business development and improvement activities and providing general and administrative services and management, undertakes financing and treasury activities, and is responsible for government affairs and investor relations. Corporate segment also manages Company's shipping business which operates two vessels transporting petroleum products within Papua New Guinea and South Pacific. The Company sells jet fuel, diesel and gasoline to domestic distributors in Papua New Guinea. The Company's main domestic customer is its Downstream distribution business segment, however the Company also distribute fuel products to Niugini Oil Company, Islands Petroleum, Exxon Mobil and Bige Petroleum. The Company's main competitor in the wholesale and retail distribution business in Papua New Guinea is ExxonMobil. The Company also competes with smaller local distributors of petroleum products. The Company is subject to an environmental law regime.

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