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CME Group ROA %

: 1.39% (As of Jun. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. CME Group's annualized Net Income for the quarter that ended in Jun. 2022 was $2,650 Mil. CME Group's average Total Assets over the quarter that ended in Jun. 2022 was $191,295 Mil. Therefore, CME Group's annualized ROA % for the quarter that ended in Jun. 2022 was 1.39%.

The historical rank and industry rank for CME Group's ROA % or its related term are showing as below:

CME' s ROA % Range Over the Past 10 Years
Min: 1.55   Med: 2.18   Max: 5.6
Current: 1.55

During the past 13 years, CME Group's highest ROA % was 5.60%. The lowest was 1.55%. And the median was 2.18%.

CME's ROA % is ranked worse than
51.94% of 774 companies
in the Capital Markets industry
Industry Median: 1.69 vs CME: 1.55

CME Group ROA % Historical Data

The historical data trend for CME Group's ROA % 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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.60 2.56 2.77 2.11 1.64

CME Group Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROA % 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 Premium Member Only Premium Member Only Premium Member Only 1.20 2.03 1.30 1.41 1.39

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, CME Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % Distribution

For the Capital Markets industry and Financial Services sector, CME Group's ROA % distribution charts can be found below:

* The bar in red indicates where CME Group's ROA % falls into.



CME Group ROA % Calculation

CME Group's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=2636.4/( (124659.6+196780.3)/ 2 )
=2636.4/160719.95
=1.64 %

CME Group's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Jun. 2022 ))/ count )
=2650/( (205917.7+176671.3)/ 2 )
=2650/191294.5
=1.39 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2022) net income data. ROA % is displayed in the 30-year financial page.


CME Group  (NAS:CME) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2022 )
=Net Income/Total Assets
=2650/191294.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2650 / 4948.8)*(4948.8 / 191294.5)
=Net Margin %*Asset Turnover
=53.55 %*0.0259
=1.39 %

Note: The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.

* 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

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


CME Group ROA % Related Terms

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


CME Group Business Description

CME Group logo
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 LLC, 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
Mccourt Timothy Francis officer: Sr MD Global Head Equity & FX 20 S WACKER DRIVE CHICAGO IL 60606
Fitzpatrick Lynne officer: Sr MD Deputy CFO 20 S WACKER DRIVE CHICAGO IL 60606
Sprague Suzanne officer: Sr MD Global Head of Clearing 20 SOUTH WACKER DRIVE 18S CHICAGO IL 60606
Dennis Michael G. director 20 S. WACKER DR. CHICAGO IL 60606
Maloney Patrick W director 20 S. WACKER DR. CHICAGO IL 60201
Mulchrone Patrick J director 20 S. WACKER DR. CHICAGO IL 60606
Seifu Rahael director 20 S. WACKER CHICAGO IL 60606
Harris Yra G director 20 S. WACKER DR CHICAGO IL 60606
Lockett Phyllis M director 20 S. WACKER DR. CHICAGO IL 60606
Tierney Robert J Jr director 20 S. WACKER DR. CHICAGO IL 60606
Kaye Daniel G director 1742 APPLEBY ROAD INVERNESS IL 60067
Spencer Michael A director 20 S. WACKER DR. CHICAGO IL 60606
Lucas Deborah J director C/O ANTHRACITE CAPITAL, INC. 40 EAST 52ND STREET NEW YORK NY 10022
Hertshten Gedon director 20 S. WACKER DR. CHICAGO IL 60606
Winkler Julie officer: Chief Commercial Officer 20 S. WACKER DR. CHICAGO IL 60606

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