GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Discover Wellness Solutions Inc (XCNQ:WLNS) » Definitions » ROE %

Discover Wellness Solutions (XCNQ:WLNS) ROE % : -453.03% (As of Sep. 2021)


View and export this data going back to 2018. Start your Free Trial

What is Discover Wellness Solutions ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Discover Wellness Solutions's annualized net income for the quarter that ended in Sep. 2021 was C$-31.10 Mil. Discover Wellness Solutions's average Total Stockholders Equity over the quarter that ended in Sep. 2021 was C$6.86 Mil. Therefore, Discover Wellness Solutions's annualized ROE % for the quarter that ended in Sep. 2021 was -453.03%.

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

XCNQ:WLNS's ROE % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 4.2
* Ranked among companies with meaningful ROE % only.

Discover Wellness Solutions ROE % Historical Data

The historical data trend for Discover Wellness Solutions'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.

Discover Wellness Solutions ROE % Chart

Discover Wellness Solutions Annual Data
Trend Dec17 Dec18 Dec19 Dec20
ROE %
-22.55 -34.31 -20.22 -34.30

Discover Wellness Solutions Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 -99.56 -27.19 -26.63 -65.01 -453.03

Competitive Comparison of Discover Wellness Solutions's ROE %

For the Drug Manufacturers - Specialty & Generic subindustry, Discover Wellness Solutions'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.


Discover Wellness Solutions's ROE % Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Discover Wellness Solutions's ROE % falls into.



Discover Wellness Solutions ROE % Calculation

Discover Wellness Solutions's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=-3.311/( (6.218+13.088)/ 2 )
=-3.311/9.653
=-34.30 %

Discover Wellness Solutions's annualized ROE % for the quarter that ended in Sep. 2021 is calculated as

ROE %=Net Income (Q: Sep. 2021 )/( (Total Stockholders Equity (Q: Jun. 2021 )+Total Stockholders Equity (Q: Sep. 2021 ))/ count )
=-31.096/( (10.691+3.037)/ 2 )
=-31.096/6.864
=-453.03 %

* 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 (Sep. 2021) net income data. ROE % is displayed in the 30-year financial page.


Discover Wellness Solutions  (XCNQ:WLNS) 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: Sep. 2021 )
=Net Income/Total Stockholders Equity
=-31.096/6.864
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-31.096 / 0.008)*(0.008 / 8.7355)*(8.7355 / 6.864)
=Net Margin %*Asset Turnover*Equity Multiplier
=-388700 %*0.0009*1.2727
=ROA %*Equity Multiplier
=-349.83 %*1.2727
=-453.03 %

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: Sep. 2021 )
=Net Income/Total Stockholders Equity
=-31.096/6.864
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-31.096 / -31.096) * (-31.096 / -1.468) * (-1.468 / 0.008) * (0.008 / 8.7355) * (8.7355 / 6.864)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 21.1826 * -18350 % * 0.0009 * 1.2727
=-453.03 %

Note: The net income data used here is four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) 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.


Discover Wellness Solutions ROE % Related Terms

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


Discover Wellness Solutions (XCNQ:WLNS) Business Description

Traded in Other Exchanges
N/A
Address
707 5th Street SW, Suite 500, Calgary, AB, CAN, T2P 0Y3
Discover Wellness Solutions Inc is focused on the production, cultivation and sale of cannabis in various forms. The company through its wholly-owned subsidiary, Rocky Mountain Marijuana Inc, a late-stage applicant under the Cannabis Act. Rocky Mountain blends science with nature using aeroponic cultivation and CO2 extraction to produce high-purity, organic-quality cannabis products.

Discover Wellness Solutions (XCNQ:WLNS) Headlines

No Headlines