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Mercer International (Mercer International) ROE %

: -53.64% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Mercer International's annualized net income for the quarter that ended in Dec. 2023 was $-349 Mil. Mercer International's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $650 Mil. Therefore, Mercer International's annualized ROE % for the quarter that ended in Dec. 2023 was -53.64%.

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

MERC' s ROE % Range Over the Past 10 Years
Min: -32.84   Med: 16.77   Max: 32.23
Current: -32.75

During the past 13 years, Mercer International's highest ROE % was 32.23%. The lowest was -32.84%. And the median was 16.77%.

MERC's ROE % is ranked worse than
95.82% of 287 companies
in the Forest Products industry
Industry Median: 4.11 vs MERC: -32.75

Mercer International ROE % Historical Data

The historical data trend for Mercer 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.

Mercer International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.70 -2.99 26.41 32.23 -32.84

Mercer International Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only 10.27 -14.72 -50.53 -14.84 -53.64

Competitive Comparison

For the Paper & Paper Products subindustry, Mercer 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.


Mercer International ROE % Distribution

For the Forest Products industry and Basic Materials sector, Mercer International's ROE % distribution charts can be found below:

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



Mercer International ROE % Calculation

Mercer 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 )
=-242.056/( (838.784+635.41)/ 2 )
=-242.056/737.097
=-32.84 %

Mercer 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 )
=-348.864/( (665.452+635.41)/ 2 )
=-348.864/650.431
=-53.64 %

* 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.


Mercer International  (NAS:MERC) 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
=-348.864/650.431
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-348.864 / 1881.976)*(1881.976 / 2658.7895)*(2658.7895 / 650.431)
=Net Margin %*Asset Turnover*Equity Multiplier
=-18.54 %*0.7078*4.0877
=ROA %*Equity Multiplier
=-13.12 %*4.0877
=-53.64 %

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
=-348.864/650.431
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-348.864 / -344.528) * (-344.528 / -90.644) * (-90.644 / 1881.976) * (1881.976 / 2658.7895) * (2658.7895 / 650.431)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0126 * 3.8009 * -4.82 % * 0.7078 * 4.0877
=-53.64 %

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.


Mercer International ROE % Related Terms

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


Mercer International (Mercer International) Business Description

Traded in Other Exchanges
Address
700 West Pender Street, Suite 1120, Vancouver, BC, CAN, V6C 1G8
Mercer International Inc is a forest products company with two reportable operating segments in pulp and solid wood. Pulp segment consists of the manufacture, sale and distribution of pulp, electricity and chemicals. Solid wood segment consists of the manufacture, sale and distribution of lumber, manufactured products wood pallets, electricity, biofuels and wood residuals from sawmills and other facilities located in Germany and the United States. The company has its geographical presence in USA, Germany, China and Other countries. Majority of the revenue is generated from the Pulp segment.
Executives
Janine North director SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8
Alice Laberge director SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8
Torbjoern Loeoef director SUITE 1120-700 WEST PENDER STREET, VANCOUVER A1 V6C1G8
Thomas Kevin Corrick director C/O BOISE CASCADE, L.L.C., 1111 W. JEFFERSON ST., STE 300, BOISE ID 83702-5389
Cynthia Margaret Alekson officer: VP, Controller SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8
Wolfgang Beck officer: Senior VP,Global Product SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8
Carsten Merforth officer: COO, Wood Products SUITE 1120 - 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8
Rainer Rettig director SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8
Keith Purchase director SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8
Peter R Kellogg 10 percent owner 48 WALL STREET, C/O IAT REINSURANCE CO LTD, NEW YORK NY 10005
Bueno Estrada Juan Carlos officer: Chief Executive Officer & Pres SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8
Guy Arguin officer: Chief Human Resources Officer SUITE 1120 - 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8
Eric Xavier Heine officer: VP Sales & Marketing NA & Asia 650 WEST GEORGIA STREET, VANCOUVER A1 V6B 4N8
Wolfram Ridder officer: VP of Business Development AM EISENBUHL 7, SELBITZ 2M D-95152
Alan C. Wallace director SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8