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Rithm Capital (Rithm Capital) ROE %

: -3.67% (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. Rithm Capital's annualized net income for the quarter that ended in Dec. 2023 was $-261 Mil. Rithm Capital's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $7,107 Mil. Therefore, Rithm Capital's annualized ROE % for the quarter that ended in Dec. 2023 was -3.67%.

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

RITM' s ROE % Range Over the Past 10 Years
Min: -22.6   Med: 13.52   Max: 24.66
Current: 8.84

During the past 12 years, Rithm Capital's highest ROE % was 24.66%. The lowest was -22.60%. And the median was 13.52%.

RITM's ROE % is ranked better than
74.62% of 800 companies
in the REITs industry
Industry Median: 4.305 vs RITM: 8.84

Rithm Capital ROE % Historical Data

The historical data trend for Rithm Capital'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.

Rithm Capital 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 8.56 -22.60 12.95 14.09 8.92

Rithm Capital 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 5.98 5.28 21.66 12.07 -3.67

Competitive Comparison

For the REIT - Mortgage subindustry, Rithm Capital'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.


Rithm Capital ROE % Distribution

For the REITs industry and Real Estate sector, Rithm Capital's ROE % distribution charts can be found below:

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



Rithm Capital ROE % Calculation

Rithm Capital'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 )
=622.257/( (6943.001+7006.942)/ 2 )
=622.257/6974.9715
=8.92 %

Rithm Capital'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 )
=-260.524/( (7208.056+7006.942)/ 2 )
=-260.524/7107.499
=-3.67 %

* 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.


Rithm Capital  (NYSE:RITM) 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
=-260.524/7107.499
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-260.524 / 1343.18)*(1343.18 / 35028.6565)*(35028.6565 / 7107.499)
=Net Margin %*Asset Turnover*Equity Multiplier
=-19.4 %*0.0383*4.9284
=ROA %*Equity Multiplier
=-0.74 %*4.9284
=-3.67 %

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
=-260.524/7107.499
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-260.524 / -149.204) * (-149.204 / 1343.18) * (1343.18 / 35028.6565) * (35028.6565 / 7107.499)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1.7461 * -11.11 % * 0.0383 * 4.9284
=-3.67 %

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.


Rithm Capital ROE % Related Terms

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


Rithm Capital (Rithm Capital) Business Description

Address
799 Broadway, New York, NY, USA, 10003
Rithm Capital Corp operates as a real estate investment trust that provides capital and services to the real estate and financial services industries. The company's mission is to generate attractive risk-adjusted returns in all interest rate environments through a complementary portfolio of investments and operating businesses. Rithm Capital's investment portfolio is composed of mortgage servicing related assets (full and excess MSRs and servicer advances), residential securities (and associated call rights) and loans (including single family rental), and consumer loans.
Executives
Peggy Hwan Hebard director 5201 INTERCHANGE WAY, LOUISVILLE KY 40229
Philip M Sivin officer: Chief Legal Officer RESURGENCE ASSET MANAGEMENT LLC, 10 NEW KING STREET, WHITE PLAINS NY 10604
Le Melle Patrice M director 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Alan L. Tyson director 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Andrew Sloves director 799 BROADWAY, NEW YORK NY 10003
Pamela F Lenehan director C/O AVID TECHNOLOGY, INC., ONE PARK WEST, TEWKSBURY MA 01876
Robert Mcginnis director 2002 SUMMIT BLVD., 6TH FLOOR, ATLANTA GA 30319
Nicola Jr Santoro officer: CFO and Treasurer C/O FXCM INC, 55 WATER STREET, NEW YORK NY 10041
David Saltzman director 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Michael Nierenberg director, officer: CEO and President 799 BROADWAY, NEW YORK NY 10003
David Schneider officer: Chief Accounting Officer 1345 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10105
Wesley R Edens director 1345 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10105
Home Loan Servicing Solutions, Ltd. 10 percent owner C/O INTERTRUST CORP SERVICES CAYMAN LTD, 190 ELGIN AVENUE, GEORGE TOWN, GRAND CAYMAN E9 KY1-9005
Kevin J Finnerty director 1345 AVENUE OF THE AMERICAS, 46TH FLOOR, NEW YORK NY 10105
Susan Givens officer: CFO and Treasurer 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105