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Marchex (Marchex) ROE % : -12.50% (As of Dec. 2023)


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What is Marchex ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Marchex's annualized net income for the quarter that ended in Dec. 2023 was $-4.57 Mil. Marchex's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $36.57 Mil. Therefore, Marchex's annualized ROE % for the quarter that ended in Dec. 2023 was -12.50%.

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

MCHX' s ROE % Range Over the Past 10 Years
Min: -55.91   Med: -10.78   Max: 15.55
Current: -25.27

During the past 13 years, Marchex's highest ROE % was 15.55%. The lowest was -55.91%. And the median was -10.78%.

MCHX's ROE % is ranked worse than
82.47% of 987 companies
in the Media - Diversified industry
Industry Median: 2.37 vs MCHX: -25.27

Marchex ROE % Historical Data

The historical data trend for Marchex'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.

Marchex ROE % Chart

Marchex 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 -4.15 -50.41 -8.43 -17.25 -24.78

Marchex 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 -30.74 -42.35 -27.84 -16.35 -12.50

Competitive Comparison of Marchex's ROE %

For the Advertising Agencies subindustry, Marchex'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.


Marchex's ROE % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Marchex's ROE % distribution charts can be found below:

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



Marchex ROE % Calculation

Marchex'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 )
=-9.91/( (44.112+35.87)/ 2 )
=-9.91/39.991
=-24.78 %

Marchex'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 )
=-4.572/( (37.274+35.87)/ 2 )
=-4.572/36.572
=-12.50 %

* 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.


Marchex  (NAS:MCHX) 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
=-4.572/36.572
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.572 / 49.576)*(49.576 / 48.279)*(48.279 / 36.572)
=Net Margin %*Asset Turnover*Equity Multiplier
=-9.22 %*1.0269*1.3201
=ROA %*Equity Multiplier
=-9.47 %*1.3201
=-12.50 %

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
=-4.572/36.572
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-4.572 / -4.408) * (-4.408 / -4.484) * (-4.484 / 49.576) * (49.576 / 48.279) * (48.279 / 36.572)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0372 * 0.9831 * -9.04 % * 1.0269 * 1.3201
=-12.50 %

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.


Marchex ROE % Related Terms

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


Marchex (Marchex) Business Description

Traded in Other Exchanges
N/A
Address
520 Pike Street, Suite 2000, Seattle, WA, USA, 98101
Marchex Inc is a conversational analytics and solutions company that helps businesses connect, drive, measure, convert callers into customers, and connect the voice of the customer to their business. It delivers data insights and incorporates artificial intelligence (AI)-powered functionality that drives insights and solutions to help companies find, engage, and support their customers across voice and text-based communication channels. The group enables sales and marketing teams to deliver the buying experiences that today's customers expect. The company generates the majority of its revenues from core analytics and solutions services. Company operates in United States, Canada and other countries.
Executives
Edenbrook Long Only Value Fund, Lp 10 percent owner EDENBROOK CAPITAL, LLC, 116 RADIO CIRCLE, SUITE 202, MT. KISCO NY 10549
Holly A Aglio officer: CFO C/O MARCHEX, INC., 1200 5TH AVE SUITE 1300, SEATTLE WA 98101
Troy Hartless officer: Chief Revenue Officer 20357 RIVER BANK STREET, STARLING VA 20165
Edwin A Miller officer: Chief Executive Officer C/O MARCHEX, INC., 520 PIKE STREET, SUITE 2000, SEATTLE WA 98101
Michael A Arends officer: Chief Financial Officer NONE, SEATTLE WA 98101
Leila Kirske officer: Chief Financial Officer C/O MARCHEX, INC., 520 PIKE STREET, SUITE 2000, SEATTLE WA 98101
John Roswech officer: Chief Revenue Officer C/O MARCHEX, INC., 520 PIKE STREET, SUITE 2000, SEATTLE WA 98101
Ryan Polley officer: Chief Product/Strategy Officer C/O MARCHEX, INC., 520 PIKE STREET, SUITE 2000, SEATTLE WA 98101
Don Cogsville director C/O MARCHEX, INC., 520 PIKE STREET, SUITE 2000, SEATTLE WA 98101
Edenbrook Capital, Llc 10 percent owner 116 RADIO CIRCLE, SUITE 202, MT. KISCO NY 10549
Jonathan Brolin 10 percent owner 2 DEPOT PLAZA, 4TH FLOOR, BEDFORD HILLS NY 10507
Prescott Group Capital Management, L.l.c. 10 percent owner 1924 SOUTH UTICA, SUITE 1120, TULSA OK 74104-6429
Ethan A Caldwell officer: General Counsel & CAO 413 PINE STREET, SEATTLE WA 98101
Phil Frohlich 10 percent owner 1924 SOUTH IRICA SUITE 1120, TULSA OK 741046529
Ziad Ismail officer: Chief Product Officer C/O MARCHEX, INC., 520 PIKE STREET, SUITE 2000, SEATTLE WA 98101