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MER Telemanagement Solutions (MER Telemanagement Solutions) ROE % : -81.89% (As of Jun. 2020)


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What is MER Telemanagement Solutions ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MER Telemanagement Solutions's annualized net income for the quarter that ended in Jun. 2020 was $-2.56 Mil. MER Telemanagement Solutions's average Total Stockholders Equity over the quarter that ended in Jun. 2020 was $3.13 Mil. Therefore, MER Telemanagement Solutions's annualized ROE % for the quarter that ended in Jun. 2020 was -81.89%.

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

MTSL's ROE % is not ranked *
in the Telecommunication Services industry.
Industry Median: 6.855
* Ranked among companies with meaningful ROE % only.

MER Telemanagement Solutions ROE % Historical Data

The historical data trend for MER Telemanagement Solutions'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.

MER Telemanagement Solutions ROE % Chart

MER Telemanagement Solutions Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -130.38 -98.99 -56.87 -4.90 -70.82

MER Telemanagement Solutions Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Dec20
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 -1.98 13.34 -2.58 -81.89 -

Competitive Comparison of MER Telemanagement Solutions's ROE %

For the Telecom Services subindustry, MER Telemanagement Solutions'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.


MER Telemanagement Solutions's ROE % Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where MER Telemanagement Solutions's ROE % falls into.



MER Telemanagement Solutions ROE % Calculation

MER Telemanagement Solutions's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=-1.815/( (3.105+2.021)/ 2 )
=-1.815/2.563
=-70.82 %

MER Telemanagement Solutions's annualized ROE % for the quarter that ended in Jun. 2020 is calculated as

ROE %=Net Income (Q: Jun. 2020 )/( (Total Stockholders Equity (Q: Mar. 2020 )+Total Stockholders Equity (Q: Jun. 2020 ))/ count )
=-2.564/( (3.093+3.169)/ 2 )
=-2.564/3.131
=-81.89 %

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


MER Telemanagement Solutions  (NAS:MTSL) 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: Jun. 2020 )
=Net Income/Total Stockholders Equity
=-2.564/3.131
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-2.564 / 3.792)*(3.792 / 6.6205)*(6.6205 / 3.131)
=Net Margin %*Asset Turnover*Equity Multiplier
=-67.62 %*0.5728*2.1145
=ROA %*Equity Multiplier
=-38.73 %*2.1145
=-81.89 %

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: Jun. 2020 )
=Net Income/Total Stockholders Equity
=-2.564/3.131
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-2.564 / -2.944) * (-2.944 / -0.516) * (-0.516 / 3.792) * (3.792 / 6.6205) * (6.6205 / 3.131)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8709 * 5.7054 * -13.61 % * 0.5728 * 2.1145
=-81.89 %

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


MER Telemanagement Solutions ROE % Related Terms

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


MER Telemanagement Solutions (MER Telemanagement Solutions) Business Description

Traded in Other Exchanges
N/A
Address
14 Hatidhar Street, Ra'anana, ISR, 4366517
MER Telemanagement Solutions Ltd is a provider of solutions for telecommunications expense management (TEM), CA, and contact center software. Its TEM suite helps organizations reduce operational expenses, improve productivity and optimize networks and services associated with communications networks and information technology.
Executives
Mintbroker International, Ltd. 10 percent owner ELIZABETH AVE. & BAY STREET, NASSAU C5 N-8340

MER Telemanagement Solutions (MER Telemanagement Solutions) Headlines

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