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Return on Equity
0.00% (As of . 20)

Return on equity is calculated as net income divided by its average shareholder equity. 's annualized net income for the quarter that ended in . 20 was \$ Mil. 's average shareholder equity for the quarter that ended in . 20 was \$ Mil. Therefore, 's annualized return on equity (ROE) for the quarter that ended in . 20 was 0.00%.

USMO' s 10-Year Return on Equity Range
Min: 0   Max: 0
Current: 0

During the past 0 years, 's highest Return on Equity (ROE) was %. The lowest was %. And the median was %.

USMO's Return on Equityis ranked lower than
100% of the Companies
in the Global industry.

( Industry Median: vs. USMO: )

Definition

's annualized Return on Equity (ROE) for the fiscal year that ended in . 20 is calculated as

 ROE = Net Income (A: . 20 ) / ( (Total Equity (A: . 20 ) + Total Equity (A: . 20 )) / 2 ) = / ( ( + ) / 2 ) = / = %

's annualized Return on Equity (ROE) for the quarter that ended in . 20 is calculated as

 ROE = Net Income (Q: . 20 ) / ( (Total Equity (Q: . 20 ) + Total Equity (Q: . 20 )) / 2 ) = / ( ( + ) / 2 ) = / = %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

In the calculation of annual return on equity, 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 two times the semi-annual (. 20) net income data. Return on Equity is displayed in the 10-year financial page.

Explanation

Return on Equity (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. ROEs between 15% and 20% are considered desirable.

The factors that affect a companys Return on Equity (ROE) can be illustrated with the Du Pont Formula:

 Return on Equity (ROE) (Q: . 20 ) = Net Income / Average Shareholder Equity = / = (Net Income / Revenue) * (Revenue / Average Total Assets) * (Average Total Assets / Average Equity) = ( / ) * ( / ) * ( / ) = Net Profit Margin * Asset Turnover * Leverage Ratio = % * * = Return on Assets * Leverage Ratio = % * = %

Note: The Net Income data used here is two times the semi-annual (. 20) net income data. The Revenue data used here is two times the semi-annual (. 20) revenue data.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

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 return on equity.

Be Aware

Because a company can increase its return on equity by having more financial leverage, it is important to watch the leverage ratio 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. ROA can be affected by events such as stock buyback or issuance, as well as by goodwill, the companys tax rate and its interest payment. Return on assets may not reflect the true earning power of the assets. A more accurate measurement is Return on Capital (ROC).

Asset light businesses require very few assets to generate very high earnings. Their ROEs can be extremely high.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Annual Data

 ROE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Semi-Annual Data

 ROE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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