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RCI Hospitality Holdings (RCI Hospitality Holdings) ROE %

: 10.17% (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. RCI Hospitality Holdings's annualized net income for the quarter that ended in Dec. 2023 was USD28.9 Mil. RCI Hospitality Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was USD284.1 Mil. Therefore, RCI Hospitality Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 10.17%.

The historical rank and industry rank for RCI Hospitality Holdings's ROE % or its related term are showing as below:

RICK' s ROE % Range Over the Past 10 Years
Min: -3.78   Med: 11.11   Max: 21.87
Current: 9.52

During the past 13 years, RCI Hospitality Holdings's highest ROE % was 21.87%. The lowest was -3.78%. And the median was 11.11%.

RICK's ROE % is ranked better than
52.11% of 332 companies
in the Restaurants industry
Industry Median: 8.785 vs RICK: 9.52

RCI Hospitality Holdings ROE % Historical Data

The historical data trend for RCI Hospitality Holdings'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.

RCI Hospitality Holdings Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.57 -3.78 18.24 21.87 11.19

RCI Hospitality Holdings 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 16.61 11.72 13.03 3.11 10.17

Competitive Comparison

For the Restaurants subindustry, RCI Hospitality Holdings'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.


RCI Hospitality Holdings ROE % Distribution

For the Restaurants industry and Consumer Cyclical sector, RCI Hospitality Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where RCI Hospitality Holdings's ROE % falls into.



RCI Hospitality Holdings ROE % Calculation

RCI Hospitality Holdings's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=29.246/( (241.269+281.581)/ 2 )
=29.246/261.425
=11.19 %

RCI Hospitality Holdings'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 )
=28.904/( (281.581+286.623)/ 2 )
=28.904/284.102
=10.17 %

* 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.


RCI Hospitality Holdings  (NAS:RICK) 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
=28.904/284.102
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(28.904 / 295.628)*(295.628 / 615.0495)*(615.0495 / 284.102)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.78 %*0.4807*2.1649
=ROA %*Equity Multiplier
=4.7 %*2.1649
=10.17 %

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
=28.904/284.102
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (28.904 / 36.172) * (36.172 / 52.648) * (52.648 / 295.628) * (295.628 / 615.0495) * (615.0495 / 284.102)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7991 * 0.6871 * 17.81 % * 0.4807 * 2.1649
=10.17 %

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.


RCI Hospitality Holdings ROE % Related Terms

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RCI Hospitality Holdings (RCI Hospitality Holdings) Business Description

Traded in Other Exchanges
Address
10737 Cutten Road, Houston, TX, USA, 77066
RCI Hospitality Holdings Inc through its subsidiaries owns and operates establishments that offer live adult entertainment, restaurant, and or bar operations. It also owns and operates a communication company serving the adult nightclubs industry. The company's operating business segments are Nightclubs, Bombshells, and Others. It operates nightclubs through the following brand's Rick's Cabaret, Vivid Cabaret, Tootsie's Cabaret, Club Onyx, and Jaguars Club. In the Bombshells segment, the company is building a chain of Restaurants and Sports Bars in Dallas, Austin, and Houston, Texas. It derives majority revenue from the Nightclubs segment that engages in the sale of alcoholic beverages, food, and merchandise items; service in the form of cover charge, dance fees, and room rentals.
Executives
Adw Capital Management, Llc 10 percent owner 6431 ALLISON ROAD, MIAMI BEACH FL 33141
Johnson Martin Elaine director 10737 CUTTEN ROAD, HOUSTON TX 77066
Yura V Barabash director 10737 CUTTEN ROAD, HOUSTON TX 77066
Bradley Lim Chhay officer: Chief Financial Officer 10737 CUTTEN ROAD, HOUSTON TX 77066
Travis Reese director, officer: Vice-president 10959 CUTTEN ROAD, HOUSTON TX 77066
Eric Scott Langan director, 10 percent owner, officer: President 3113 BERING DR, HOUSTON TX 77057
Adam D Wyden 10 percent owner 1133 BROADWAY, SUITE 719, NEW YORK NY 10010
Adw Capital Partners, L.p. 10 percent owner 6431 ALLISON ROAD, MIAMI BEACH FL 33141
Allan Priaulx Arthur director 10737 CUTTEN ROAD, HOUSTON TX 77066
Phillip Kent Marshall officer: CFO 10959 CUTTEN ROAD, HOUSTON TX 77066
Luke Charles Lirot director 2240 BELLEAIR RD., SUITE 190, CLEARWATER FL 33764
Robert L Watter director 10959 CUTTEN ROAD, HOUSTON TX 77066
Steven L Jenkins director 16815 ROYAL CREST DRIVE SUITE 160, HOUSTON TX 77058
Nour-dean Anakar director 3978 SORRENTO VALLEY DRIVE, SUITE 100, SAN DIEGO CA 92121
Alan Bergstrom director 10959 CUTTEN ROAD, HOUSTON TX 77066