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Rocky Mountain Chocolate Factory (Rocky Mountain Chocolate Factory) ROE % : -24.08% (As of Nov. 2023)


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What is Rocky Mountain Chocolate Factory ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rocky Mountain Chocolate Factory's annualized net income for the quarter that ended in Nov. 2023 was $-3.03 Mil. Rocky Mountain Chocolate Factory's average Total Stockholders Equity over the quarter that ended in Nov. 2023 was $12.58 Mil. Therefore, Rocky Mountain Chocolate Factory's annualized ROE % for the quarter that ended in Nov. 2023 was -24.08%.

The historical rank and industry rank for Rocky Mountain Chocolate Factory's ROE % or its related term are showing as below:

RMCF' s ROE % Range Over the Past 10 Years
Min: -33.65   Med: 13.33   Max: 24.51
Current: -31.02

During the past 13 years, Rocky Mountain Chocolate Factory's highest ROE % was 24.51%. The lowest was -33.65%. And the median was 13.33%.

RMCF's ROE % is ranked worse than
92.14% of 1820 companies
in the Consumer Packaged Goods industry
Industry Median: 6.375 vs RMCF: -31.02

Rocky Mountain Chocolate Factory ROE % Historical Data

The historical data trend for Rocky Mountain Chocolate Factory'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.

Rocky Mountain Chocolate Factory ROE % Chart

Rocky Mountain Chocolate Factory Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.21 5.20 -4.70 -1.78 -33.65

Rocky Mountain Chocolate Factory Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
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 -5.33 -45.27 -23.42 -30.02 -24.08

Competitive Comparison of Rocky Mountain Chocolate Factory's ROE %

For the Confectioners subindustry, Rocky Mountain Chocolate Factory'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.


Rocky Mountain Chocolate Factory's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Rocky Mountain Chocolate Factory's ROE % distribution charts can be found below:

* The bar in red indicates where Rocky Mountain Chocolate Factory's ROE % falls into.



Rocky Mountain Chocolate Factory ROE % Calculation

Rocky Mountain Chocolate Factory's annualized ROE % for the fiscal year that ended in Feb. 2023 is calculated as

ROE %=Net Income (A: Feb. 2023 )/( (Total Stockholders Equity (A: Feb. 2022 )+Total Stockholders Equity (A: Feb. 2023 ))/ count )
=-5.681/( (19.4+14.37)/ 2 )
=-5.681/16.885
=-33.65 %

Rocky Mountain Chocolate Factory's annualized ROE % for the quarter that ended in Nov. 2023 is calculated as

ROE %=Net Income (Q: Nov. 2023 )/( (Total Stockholders Equity (Q: Aug. 2023 )+Total Stockholders Equity (Q: Nov. 2023 ))/ count )
=-3.028/( (12.872+12.282)/ 2 )
=-3.028/12.577
=-24.08 %

* 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 (Nov. 2023) net income data. ROE % is displayed in the 30-year financial page.


Rocky Mountain Chocolate Factory  (NAS:RMCF) 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: Nov. 2023 )
=Net Income/Total Stockholders Equity
=-3.028/12.577
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-3.028 / 30.788)*(30.788 / 20.9075)*(20.9075 / 12.577)
=Net Margin %*Asset Turnover*Equity Multiplier
=-9.84 %*1.4726*1.6624
=ROA %*Equity Multiplier
=-14.49 %*1.6624
=-24.08 %

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: Nov. 2023 )
=Net Income/Total Stockholders Equity
=-3.028/12.577
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-3.028 / -3.028) * (-3.028 / -3.1) * (-3.1 / 30.788) * (30.788 / 20.9075) * (20.9075 / 12.577)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.9768 * -10.07 % * 1.4726 * 1.6624
=-24.08 %

Note: The net income data used here is four times the quarterly (Nov. 2023) net income data. The Revenue data used here is four times the quarterly (Nov. 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.


Rocky Mountain Chocolate Factory ROE % Related Terms

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


Rocky Mountain Chocolate Factory (Rocky Mountain Chocolate Factory) Business Description

Traded in Other Exchanges
Address
265 Turner Drive, Durango, CO, USA, 81303
Rocky Mountain Chocolate Factory Inc operates as a manufacturer of chocolate candies and confectionery products. The business activity of the firm functions through Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other segments. Its products include varieties of Clusters, Caramels, Creams, Toffees, Mints, and Truffles. Geographically, the company and its subsidiaries have stores in Canada, South Korea, Panama, the Philippines, Qatar, and other countries.
Executives
Robert J Sarlls director, officer: Chief Executive Officer 1703 N. RANDALL ROAD, ELGIN IL 60123-7820
Global Value Investment Corp. 10 percent owner 1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Geygan Jeffrey Richart Geygan director 1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Brett P Seabert director 265 TURNER DRIVE, DURANGO CO 81303
A Allen Arroyo officer: CFO C/O ROCKY MOUNTAIN CHOCOLATE FACTORY, 265 TURNER DRIVE, DURANGO CO 81303
Gvp 2021-a, Llc other: GVIC-Controlled Entity 1433 N WATER STREET, SUITE 400, MILWAUKEE WI 53202
Gvp 2021-a, L.p. other: GVIC-Controlled Entity 1433 N WATER STREET, SUITE 400, MILWAUKEE WI 53202
Kathleen Geygan other: Director of GVIC 1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Stacy Wilke other: Officer of GVIC 1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
James Geygan other: Officer of GVIC 1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Mark O Riegel director 265 TURNER DRIVE, DURANGO CO 81303
Andrew Berger other: See Explanation of Responses 84 ELM STREET, WESTFIELD NJ 07090
Richard Degnan other: See footnote 1 2101 FREDRICK DOUGLAS BLVD, NEW YORK NY 10026
Suchit Majmudar other: See footnote 1 1200 SOUTH GARFIELD STREET, DENVER CO 80210
Mary Bradley other: See footnote 1 103 ST ANDREWS PLACE, NEWTOWN PA 18940

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