Ventura Cannabis and Wellness (Ventura Cannabis and Wellness) ROE % : -42.33% (As of May. 2020)

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What is Ventura Cannabis and Wellness ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ventura Cannabis and Wellness's annualized net income for the quarter that ended in May. 2020 was $-2.49 Mil. Ventura Cannabis and Wellness's average Total Stockholders Equity over the quarter that ended in May. 2020 was $5.88 Mil. Therefore, Ventura Cannabis and Wellness's annualized ROE % for the quarter that ended in May. 2020 was -42.33%.

The historical rank and industry rank for Ventura Cannabis and Wellness's ROE % or its related term are showing as below:

CVHIF's ROE % is not ranked ^*
in the Drug Manufacturers industry.
Industry Median: 4.26
* Ranked among companies with meaningful ROE % only.

Ventura Cannabis and Wellness ROE % Historical Data

The historical data trend for Ventura Cannabis and Wellness'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.

Ventura Cannabis and Wellness ROE % Chart

Ventura Cannabis and Wellness Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Nov14

Nov15

Feb17

Feb18

Feb19

Feb20

ROE %

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-2.23

-102.62

-23.99

-37.17

-26.24

Ventura Cannabis and Wellness Quarterly Data
	May15	Aug15	Nov15	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20
ROE %	Get a 7-Day Free Trial															-35.50	-35.39	-64.01	25.73	-42.33

Competitive Comparison of Ventura Cannabis and Wellness's ROE %

For the Drug Manufacturers - Specialty & Generic subindustry, Ventura Cannabis and Wellness'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.

Ventura Cannabis and Wellness's ROE % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Ventura Cannabis and Wellness's ROE % distribution charts can be found below:

* The bar in red indicates where Ventura Cannabis and Wellness's ROE % falls into.

Ventura Cannabis and Wellness ROE % Calculation

Ventura Cannabis and Wellness's annualized ROE % for the fiscal year that ended in Feb. 2020 is calculated as

ROE %	=	Net Income (A: Feb. 2020 )	/	( (Total Stockholders Equity (A: Feb. 2019 )	+	Total Stockholders Equity (A: Feb. 2020 ))	/ count )
	=	-1.745	/	( (7.085	+	6.213)	/ 2 )
	=	-1.745	/	6.649
	=	-26.24 %

Ventura Cannabis and Wellness's annualized ROE % for the quarter that ended in May. 2020 is calculated as

ROE %	=	Net Income (Q: May. 2020 )	/	( (Total Stockholders Equity (Q: Feb. 2020 )	+	Total Stockholders Equity (Q: May. 2020 ))	/ count )
	=	-2.488	/	( (6.213	+	5.542)	/ 2 )
	=	-2.488	/	5.8775
	=	-42.33 %

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 (May. 2020) net income data. ROE % is displayed in the 30-year financial page.

Ventura Cannabis and Wellness (OTCPK:CVHIF) 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: May. 2020 )
=	Net Income	/	Total Stockholders Equity
=	-2.488	/	5.8775
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-2.488 / 3.62)	*	(3.62 / 11.2915)	*	(11.2915 / 5.8775)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-68.73 %	*	0.3206	*	1.9211
=	ROA %	*	Equity Multiplier
=	-22.03 %	*	1.9211
=	-42.33 %

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: May. 2020 )
=	Net Income	/	Total Stockholders Equity
=	-2.488	/	5.8775
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-2.488 / -2.488)	*	(-2.488 / -0.468)	*	(-0.468 / 3.62)	*	(3.62 / 11.2915)	*	(11.2915 / 5.8775)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	1	*	5.3162	*	-12.93 %	*	0.3206	*	1.9211
=	-42.33 %

Note: The net income data used here is four times the quarterly (May. 2020) net income data. The Revenue data used here is four times the quarterly (May. 2020) 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.

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.

Ventura Cannabis and Wellness ROE % Related Terms

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Ventura Cannabis and Wellness (Ventura Cannabis and Wellness) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Ventura Cannabis and Wellness Corp (OTCPK:CVHIF) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

800 W. 6th St, Suite 1415, Los Angeles, CA, USA, 90017

Website

http://www.venturacanna.com

Ventura Cannabis and Wellness Corp is a vertically integrated, California-based products cannabis company. The company is currently building out its distribution channel through revenue-sharing agreements with owner-operator of cannabis dispensaries to ensure it's products get premium shelf space. The Company plans to target four segments in the U.S. cannabis and CBD market with products suited to their needs: senior citizens, upwardly mobile middle-aged female professionals, upwardly mobile middle-aged male professionals and individuals suffering from addiction. These segments desire discrete and well-designed products as well as the accurate dosage of THC.