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CME Group (CME Group) Return-on-Tangible-Equity : Negative Tangible Equity% (As of Dec. 2023)


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What is CME Group Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. CME Group's annualized net income for the quarter that ended in Dec. 2023 was $3,258 Mil. CME Group's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $-3,290 Mil. Therefore, CME Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was Negative Tangible Equity%.

The historical rank and industry rank for CME Group's Return-on-Tangible-Equity or its related term are showing as below:

CME' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0   Med: 0   Max: 0
Current: Negative Tangible Equity

CME's Return-on-Tangible-Equity is ranked better than
99.87% of 767 companies
in the Capital Markets industry
Industry Median: 5.46 vs CME: Negative Tangible Equity

CME Group Return-on-Tangible-Equity Historical Data

The historical data trend for CME Group's Return-on-Tangible-Equity 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.

CME Group Return-on-Tangible-Equity Chart

CME Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

CME Group Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Return-on-Tangible-Equity 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 Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Competitive Comparison of CME Group's Return-on-Tangible-Equity

For the Financial Data & Stock Exchanges subindustry, CME Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.


CME Group's Return-on-Tangible-Equity Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, CME Group's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where CME Group's Return-on-Tangible-Equity falls into.



CME Group Return-on-Tangible-Equity Calculation

CME Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=3226.2/( (-4048.8+-3982.9 )/ 2 )
=3226.2/-4015.85
=Negative Tangible Equity %

CME Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=3258.4/( (-2596.7+-3982.9)/ 2 )
=3258.4/-3289.8
=Negative Tangible Equity %

* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible 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. Return-on-Tangible-Equity is displayed in the 10-year financial page.


CME Group  (NAS:CME) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.


CME Group Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of CME Group's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


CME Group (CME Group) Business Description

Address
20 South Wacker Drive, Chicago, IL, USA, 60606
Based in Chicago, CME Group operates exchanges giving investors, suppliers, and businesses the ability to trade futures and derivatives based on interest rates, equity indexes, foreign currencies, energy, metals, and commodities. The CME was founded in 1898 and in 2002 completed its initial public offering. Since then, CME Group has consolidated parts of the industry by merging with crosstown rival, CBOT Holdings in 2007 before acquiring Nymex Holdings in 2008 and NEX in 2018. In addition, the company has a 27% stake in S&P Dow Jones Indices, making the Chicago Mercantile Exchange the exclusive venue to trade and clear S&P futures contracts. Through CME's acquisition of NEX in 2018 it has also expanded into cash foreign exchange, fixed income trading, and collateral optimization.
Executives
William R Shepard director 20 S. WACKER DR, CHICAGO IL 60606
Bryan T Durkin officer: MD & COO 20 S. WACKER DRIVE, CHICAGO IL 60606
Derek Sammann officer: Managing Dir Financial Product 20 S. WACKER DRIVE, CHICAGO IL 60606
Dennis Suskind director ONE NORTH END AVENUE, WORLD FINANCIAL CENTER, NEW YORK NY 10282
Suzanne Sprague officer: Sr MD Global Head of Clearing 20 SOUTH WACKER DRIVE, 18S, CHICAGO IL 60606
Timothy Francis Mccourt officer: Sr MD Global Head Equity & FX 20 S WACKER DRIVE, CHICAGO IL 60606
Elizabeth A Cook director 20 S. WACKER DRIVE, CHICAGO IL 60606
Martin J Gepsman director 20 S. WACKER DR, CHICAGO IL 60606
Terrence A Duffy director 20 S. WACKER DR, CHICAGO IL 60606
Julie Holzrichter officer: MD Operations 20 S. WACKER DRIVE, CHICAGO IL 60606
Timothy S. Bitsberger director 20 S. WACKER DRIVE, CHICAGO IL 60606
Julie Winkler officer: Chief Commercial Officer 20 S. WACKER DR., CHICAGO IL 60606
Daniel R Glickman director 20 S. WACKER DR, CHICAGO IL 60606
Hilda Harris Piell officer: MD, Organizational Development 20 S. WACKER DRIVE, CHICAGO IL 60606
Sunil Cutinho officer: President, CME Clearing 20 S. WACKER DR., CHICAGO IL 60606

CME Group (CME Group) Headlines