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Emergent Capital (Emergent Capital) ROE % : -7.00% (As of Aug. 2020)


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What is Emergent Capital ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Emergent Capital's annualized net income for the quarter that ended in Aug. 2020 was $-4.11 Mil. Emergent Capital's average Total Stockholders Equity over the quarter that ended in Aug. 2020 was $58.76 Mil. Therefore, Emergent Capital's annualized ROE % for the quarter that ended in Aug. 2020 was -7.00%.

The historical rank and industry rank for Emergent Capital's ROE % or its related term are showing as below:

EMGCQ's ROE % is not ranked *
in the Insurance industry.
Industry Median: 10.07
* Ranked among companies with meaningful ROE % only.

Emergent Capital ROE % Historical Data

The historical data trend for Emergent Capital'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.

Emergent Capital ROE % Chart

Emergent Capital Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Nov19
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.70 -14.25 -25.27 -1.90 12.14

Emergent Capital Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20
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 7,537.18 -22.32 102.91 32.76 -7.00

Competitive Comparison of Emergent Capital's ROE %

For the Insurance - Life subindustry, Emergent Capital'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.


Emergent Capital's ROE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Emergent Capital's ROE % distribution charts can be found below:

* The bar in red indicates where Emergent Capital's ROE % falls into.



Emergent Capital ROE % Calculation

Emergent Capital's annualized ROE % for the fiscal year that ended in Nov. 2019 is calculated as

ROE %=Net Income (A: Nov. 2019 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Nov. 2019 ))/ count )
=14.496/( (196.642+42.113)/ 2 )
=14.496/119.3775
=12.14 %

Emergent Capital's annualized ROE % for the quarter that ended in Aug. 2020 is calculated as

ROE %=Net Income (Q: Aug. 2020 )/( (Total Stockholders Equity (Q: May. 2020 )+Total Stockholders Equity (Q: Aug. 2020 ))/ count )
=-4.112/( (59.266+58.259)/ 2 )
=-4.112/58.7625
=-7.00 %

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


Emergent Capital  (OTCPK:EMGCQ) 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: Aug. 2020 )
=Net Income/Total Stockholders Equity
=-4.112/58.7625
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.112 / 17)*(17 / 174.7645)*(174.7645 / 58.7625)
=Net Margin %*Asset Turnover*Equity Multiplier
=-24.19 %*0.0973*2.9741
=ROA %*Equity Multiplier
=-2.35 %*2.9741
=-7.00 %

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: Aug. 2020 )
=Net Income/Total Stockholders Equity
=-4.112/58.7625
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-4.112 / -4.112) * (-4.112 / 6.86) * (6.86 / 17) * (17 / 174.7645) * (174.7645 / 58.7625)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 1 * -0.5994 * 40.35 % * 0.0973 * 2.9741
=-7.00 %

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

* 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.


Emergent Capital ROE % Related Terms

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


Emergent Capital (Emergent Capital) Business Description

Traded in Other Exchanges
N/A
Address
5355 Town Center Road, Suite 701, Boca Raton, FL, USA, 33486
Emergent Capital Inc operates as a life insurance company. The firm invests primarily in life settlements, which provide liquidity for the owners of life insurance policies that face a short-term cash need or can no longer afford their insurance premiums. It also focuses on providing portfolio management services. The company receives maximum revenue in the form of interest income. Geographically, the company operates only in the United States of America market region.
Executives
Patrick J Curry director, 10 percent owner, officer: CEO 5601 WEST WACO DRIVE WACO TX 76710
Pjc Investments, Llc director, 10 percent owner 204 WOODHEW DRIVE WACO TX 76712
Robert C Knapp director C/O IRONSIDES PARTNERS LLC, 100 SUMMER STREET, SUITE 2705, BOSTON MA 02110
Miriam Martinez officer: CFO and Secretary C/O IMPERIAL HOLDINGS, INC. 701 PARK OF COMMERCE BLVD., SUITE 301 BOCA RATON FL 33487
Jack Simony officer: VP and CIO C/O EMERGENT CAPITAL, INC. 5355 TOWN CENTER ROAD, SUITE 701 BOCA RATON FL 33486
Harvey Z. Werblowsky officer: VP, CLO and GC C/O EMERGENT CAPITAL, INC. 5355 TOWN CENTER ROAD, SUITE 701 BOCA RATON FL 33486
Matthew D Houk director 470 PARK AVENUE SOUTH 4TH FLOOR NEW YORK NY 10016
Roy Patterson director 17002 MARCY STREET OMAHA NE 68118
James G. Wolf director 105, FLYWAY DRIVE, KIAWAH ISLAND SC 29455
Patrick Thomas Brennan director 1 SEA BREEZE COURT NAPA CA 94559
Joseph E Sarachek director, 10 percent owner C/O TRIAX CAPITAL ADVISORS, LLC 620 FIFTH AVENUE, 2ND FLOOR NEW YORK NY 10020
Topco 1, Llc director, 10 percent owner C/O KELLEY DRYE & WARREN LLP 101 PARK AVENUE NEW YORK NY 10178
Jsarco, Llc director, 10 percent owner C/O KELLEY DRYE & WARREN LLP 101 PARK AVENUE NEW YORK NY 10178
Antony Mitchell other: Former CEO and Director 701 PARK OF COMMERCE BOULEVARD SUITE 301 BOCA RATON FL 33487
James Hua director 40 LAKE BELLEVUE DRIVE BELLEVUE WA 98108

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