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Metro Global Media (Metro Global Media) ROE % : -21.78% (As of Nov. 2001)


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What is Metro Global Media ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Metro Global Media's annualized net income for the quarter that ended in Nov. 2001 was $-0.85 Mil. Metro Global Media's average Total Stockholders Equity over the quarter that ended in Nov. 2001 was $3.89 Mil. Therefore, Metro Global Media's annualized ROE % for the quarter that ended in Nov. 2001 was -21.78%.

The historical rank and industry rank for Metro Global Media's ROE % or its related term are showing as below:

MGMA's ROE % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.54
* Ranked among companies with meaningful ROE % only.

Metro Global Media ROE % Historical Data

The historical data trend for Metro Global Media'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.

Metro Global Media ROE % Chart

Metro Global Media Annual Data
Trend May92 May93 May94 May95 May96 May97 May98 May99 May00 May01
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.92 -8.75 -44.44 -10.25 -76.42

Metro Global Media Quarterly Data
Feb97 May97 Aug97 Nov97 Feb98 May98 Aug98 Nov98 Feb99 May99 Aug99 Nov99 Feb00 May00 Aug00 Nov00 Feb01 May01 Aug01 Nov01
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 -43.57 -6.67 -271.37 -42.41 -21.78

Competitive Comparison of Metro Global Media's ROE %

For the Entertainment subindustry, Metro Global Media'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.


Metro Global Media's ROE % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Metro Global Media's ROE % distribution charts can be found below:

* The bar in red indicates where Metro Global Media's ROE % falls into.



Metro Global Media ROE % Calculation

Metro Global Media's annualized ROE % for the fiscal year that ended in May. 2001 is calculated as

ROE %=Net Income (A: May. 2001 )/( (Total Stockholders Equity (A: May. 2000 )+Total Stockholders Equity (A: May. 2001 ))/ count )
=-5.171/( (9.177+4.356)/ 2 )
=-5.171/6.7665
=-76.42 %

Metro Global Media's annualized ROE % for the quarter that ended in Nov. 2001 is calculated as

ROE %=Net Income (Q: Nov. 2001 )/( (Total Stockholders Equity (Q: Aug. 2001 )+Total Stockholders Equity (Q: Nov. 2001 ))/ count )
=-0.848/( (3.926+3.862)/ 2 )
=-0.848/3.894
=-21.78 %

* 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. 2001) net income data. ROE % is displayed in the 30-year financial page.


Metro Global Media  (GREY:MGMA) 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. 2001 )
=Net Income/Total Stockholders Equity
=-0.848/3.894
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-0.848 / 22.604)*(22.604 / 16.9945)*(16.9945 / 3.894)
=Net Margin %*Asset Turnover*Equity Multiplier
=-3.75 %*1.3301*4.3643
=ROA %*Equity Multiplier
=-4.99 %*4.3643
=-21.78 %

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. 2001 )
=Net Income/Total Stockholders Equity
=-0.848/3.894
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-0.848 / -0.848) * (-0.848 / -0.288) * (-0.288 / 22.604) * (22.604 / 16.9945) * (16.9945 / 3.894)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 2.9444 * -1.27 % * 1.3301 * 4.3643
=-21.78 %

Note: The net income data used here is four times the quarterly (Nov. 2001) net income data. The Revenue data used here is four times the quarterly (Nov. 2001) 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.


Metro Global Media ROE % Related Terms

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Metro Global Media (Metro Global Media) Business Description

Traded in Other Exchanges
N/A
Address
1060 Park Avenue, Cranston, RI, USA, 02910
Metro Global Media Inc operates in the media industry in United States. The company is a multimedia, mass marketing company that produces adult film, video, and internet entertainment. The firm also publishes and distributes magazines.

Metro Global Media (Metro Global Media) Headlines

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