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Resource America (Resource America) ROE % : -0.80% (As of Jun. 2016)


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What is Resource America ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Resource America's annualized net income for the quarter that ended in Jun. 2016 was $-1.09 Mil. Resource America's average Total Stockholders Equity over the quarter that ended in Jun. 2016 was $135.97 Mil. Therefore, Resource America's annualized ROE % for the quarter that ended in Jun. 2016 was -0.80%.

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

REXI's ROE % is not ranked *
in the Real Estate industry.
Industry Median: 2.88
* Ranked among companies with meaningful ROE % only.

Resource America ROE % Historical Data

The historical data trend for Resource America'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.

Resource America ROE % Chart

Resource America Annual Data
Trend Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.05 17.76 5.28 5.76 4.17

Resource America Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 0.51 -2.91 24.33 8.88 -0.80

Competitive Comparison of Resource America's ROE %

For the Real Estate Services subindustry, Resource America'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.


Resource America's ROE % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Resource America's ROE % distribution charts can be found below:

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



Resource America ROE % Calculation

Resource America'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 )
=6.188/( (159.261+137.763)/ 2 )
=6.188/148.512
=4.17 %

Resource America's annualized ROE % for the quarter that ended in Jun. 2016 is calculated as

ROE %=Net Income (Q: Jun. 2016 )/( (Total Stockholders Equity (Q: Mar. 2016 )+Total Stockholders Equity (Q: Jun. 2016 ))/ count )
=-1.088/( (135.94+136)/ 2 )
=-1.088/135.97
=-0.80 %

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


Resource America  (NAS:REXI) 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. 2016 )
=Net Income/Total Stockholders Equity
=-1.088/135.97
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1.088 / 104.556)*(104.556 / 207.9005)*(207.9005 / 135.97)
=Net Margin %*Asset Turnover*Equity Multiplier
=-1.04 %*0.5029*1.529
=ROA %*Equity Multiplier
=-0.52 %*1.529
=-0.80 %

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. 2016 )
=Net Income/Total Stockholders Equity
=-1.088/135.97
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1.088 / 4.32) * (4.32 / 7.256) * (7.256 / 104.556) * (104.556 / 207.9005) * (207.9005 / 135.97)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -0.2519 * 0.5954 * 6.94 % * 0.5029 * 1.529
=-0.80 %

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


Resource America ROE % Related Terms

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


Resource America (Resource America) Business Description

Traded in Other Exchanges
N/A
Address
Resource America Inc is Delaware Corporation. It is an asset management company that uses industry specific expertise to evaluate, originate, service and manage investment opportunities through its real estate, commercial finance and financial fund management subsidiaries. As a specialized asset manager, it develops investment funds for outside investors for which the Company provides asset management services, typically under long-term management arrangements either through a contract with, or as the manager or general partner of, its sponsored investment funds. In its real estate segment, it focuses on acquiring and managing a diversified portfolio of commercial real estate and real estate related debt that has been significantly discounted due to the effects of current economic conditions and high levels of leverage. In its financial fund management segment, it focuses on the he sponsorship and management of issuers of collateralized loan and debt obligations. The Company has operations in New York, Philadelphia, Los Angeles, London, Singapore and Sydney. In its real estate operations, the Company concentrates on the ownership, operation and management of multifamily and commercial real estate and real estate mortgage loans including whole mortgage loans, first priority interests in commercial mortgage loans, known as A notes, subordinated interests in first mortgage loans, known as B notes, mezzanine loans, investments in discounted and distressed real estate loans and investments in value-added properties. The Company faces competition from other asset holding companies in various areas.
Executives
Michael J Bradley director 1370 SOUTH LEOPARD ROAD, BERWYN PA 19312
Richard Jr Reiss director 1001 PARK AVE, NEW YORK NY 10028
Jeffrey F Brotman officer: Executive Vice President 1845 WALNUT STREET, 10TH FLOOR, PHILADELPHIA PA 19103
Jeffrey D Blomstrom officer: Senior Vice President C/O RESOURCE AMERICA, INC., 717 FIFTH AVENUE, 14TH FLOOR, NEW YORK NY 10022
Thomas C Elliott officer: SVP & CFO 1845 WALNUT STREET, 18TH FLOOR, PHILADELPHIA PA 19103
Hersh Kozlov director WOLF BLOCK SCHORR & SOLIS, 1940 RTE 70 E, CHERRY HILL NJ 08003
Carlos C Campbell director C/O 1845 WALNUT STREET 10TH FLOOR PHILADELPHIA PA 19103
Edward E Cohen director RESOURCE AMERICA INC, 1845 WALNUT ST, PHILADELPHIA PA 19103
Jonathan Z Cohen director, officer: CEO & President 1845 WALNUT STREET, 10TH FLOOR, PHILADELPHIA PA 19103
Leon G Cooperman 10 percent owner 7118 MELROSE CASTLE LANE, BOCA RATON FL 33496
Robert L Lerner director C/O DPT CAPITAL MANAGEMENT, LLC 213 NASSAU STREET PRINCETON NJ 08542
Raging Capital Management, Llc 10 percent owner TEN PRINCETON AVENUE, PO BOX 228, ROCKY HILL NJ 08553-0228
Raging Capital Master Fund, Ltd. 10 percent owner C/O OGIER FIDUCIARY SERVICES (CAYMAN), 89 NEXUS WAY, CAMANA BAY, GRAND CAYMAN E9 KY 1-9007
William C Martin 10 percent owner C/O RAGING CAPITAL MANAGEMENT, LLC, TEN PRINCETON AVENUE, PO BOX 228, ROCKY HILL NJ 08553
Raging Capital Fund (qp), Lp other: See explanation of responses TEN PRINCETON AVENUE, PO BOX 228, ROCKY HILL NJ 08853

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