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GCI Liberty (GCI Liberty) ROE % : 49.87% (As of Sep. 2020)


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What is GCI Liberty ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. GCI Liberty's annualized net income for the quarter that ended in Sep. 2020 was $3,297.6 Mil. GCI Liberty's average Total Stockholders Equity over the quarter that ended in Sep. 2020 was $6,612.7 Mil. Therefore, GCI Liberty's annualized ROE % for the quarter that ended in Sep. 2020 was 49.87%.

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

LVNTB's ROE % is not ranked *
in the Telecommunication Services industry.
Industry Median: 6.98
* Ranked among companies with meaningful ROE % only.

GCI Liberty ROE % Historical Data

The historical data trend for GCI Liberty'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.

GCI Liberty ROE % Chart

GCI Liberty Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.34 46.84 23.63 -20.51 36.93

GCI Liberty Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 6.55 48.67 -42.81 41.37 49.87

Competitive Comparison of GCI Liberty's ROE %

For the Telecom Services subindustry, GCI Liberty'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.


GCI Liberty's ROE % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, GCI Liberty's ROE % distribution charts can be found below:

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



GCI Liberty ROE % Calculation

GCI Liberty's annualized ROE % for the fiscal year that ended in Dec. 2019 is calculated as

ROE %=Net Income (A: Dec. 2019 )/( (Total Stockholders Equity (A: Dec. 2018 )+Total Stockholders Equity (A: Dec. 2019 ))/ count )
=1938.698/( (4297.123+6201.484)/ 2 )
=1938.698/5249.3035
=36.93 %

GCI Liberty's annualized ROE % for the quarter that ended in Sep. 2020 is calculated as

ROE %=Net Income (Q: Sep. 2020 )/( (Total Stockholders Equity (Q: Jun. 2020 )+Total Stockholders Equity (Q: Sep. 2020 ))/ count )
=3297.648/( (6201.506+7023.967)/ 2 )
=3297.648/6612.7365
=49.87 %

* 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. 2020) net income data. ROE % is displayed in the 30-year financial page.


GCI Liberty  (NAS:LVNTB) 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. 2020 )
=Net Income/Total Stockholders Equity
=3297.648/6612.7365
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3297.648 / 987.568)*(987.568 / 12646.486)*(12646.486 / 6612.7365)
=Net Margin %*Asset Turnover*Equity Multiplier
=333.92 %*0.0781*1.9124
=ROA %*Equity Multiplier
=26.08 %*1.9124
=49.87 %

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. 2020 )
=Net Income/Total Stockholders Equity
=3297.648/6612.7365
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (3297.648 / 4651.328) * (4651.328 / 40.288) * (40.288 / 987.568) * (987.568 / 12646.486) * (12646.486 / 6612.7365)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.709 * 115.4519 * 4.08 % * 0.0781 * 1.9124
=49.87 %

Note: The net income data used here is four times the quarterly (Sep. 2020) net income data. The Revenue data used here is four times the quarterly (Sep. 2020) 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.


GCI Liberty ROE % Related Terms

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


GCI Liberty (GCI Liberty) Business Description

Traded in Other Exchanges
N/A
Address
12300 Liberty Boulevard, Englewood, CO, USA, 80112
GCI Liberty Inc is a holding company.Through its subsidiaries it provides various wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska under the GCI brand. The company mainly serves markets that bear harsh winter and are located in remote geographies in North America.