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American Realty Investors (American Realty Investors) ROE % : -1.37% (As of Dec. 2023)


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What is American Realty Investors ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. American Realty Investors's annualized net income for the quarter that ended in Dec. 2023 was $-8.49 Mil. American Realty Investors's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $618.29 Mil. Therefore, American Realty Investors's annualized ROE % for the quarter that ended in Dec. 2023 was -1.37%.

The historical rank and industry rank for American Realty Investors's ROE % or its related term are showing as below:

ARL' s ROE % Range Over the Past 10 Years
Min: -7.21   Med: 1.02   Max: 93.79
Current: 0.64

During the past 13 years, American Realty Investors's highest ROE % was 93.79%. The lowest was -7.21%. And the median was 1.02%.

ARL's ROE % is ranked worse than
62.13% of 1780 companies
in the Real Estate industry
Industry Median: 2.94 vs ARL: 0.64

American Realty Investors ROE % Historical Data

The historical data trend for American Realty Investors'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.

American Realty Investors ROE % Chart

American Realty Investors Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.41 3.79 1.40 87.47 0.64

American Realty Investors Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 29.36 1.94 0.08 1.93 -1.37

Competitive Comparison of American Realty Investors's ROE %

For the Real Estate - Development subindustry, American Realty Investors'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.


American Realty Investors's ROE % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, American Realty Investors's ROE % distribution charts can be found below:

* The bar in red indicates where American Realty Investors's ROE % falls into.



American Realty Investors ROE % Calculation

American Realty Investors's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=3.968/( (613.487+617.003)/ 2 )
=3.968/615.245
=0.64 %

American Realty Investors's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-8.492/( (619.578+617.003)/ 2 )
=-8.492/618.2905
=-1.37 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


American Realty Investors  (NYSE:ARL) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-8.492/618.2905
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-8.492 / 56.188)*(56.188 / 1042.881)*(1042.881 / 618.2905)
=Net Margin %*Asset Turnover*Equity Multiplier
=-15.11 %*0.0539*1.6867
=ROA %*Equity Multiplier
=-0.81 %*1.6867
=-1.37 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-8.492/618.2905
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-8.492 / -17.024) * (-17.024 / -8.764) * (-8.764 / 56.188) * (56.188 / 1042.881) * (1042.881 / 618.2905)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.4988 * 1.9425 * -15.6 % * 0.0539 * 1.6867
=-1.37 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


American Realty Investors ROE % Related Terms

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


American Realty Investors (American Realty Investors) Business Description

Traded in Other Exchanges
N/A
Address
1603 Lyndon B Johnson Freeway, Suite 800, One Hickory Centre, Dallas, TX, USA, 75234
American Realty Investors Inc is a real estate company. The company acquires, develops, and owns income-producing residential and commercial real estate properties. Its segment involves Residential segment and Commercial segment. Residential segment is engaged in the acquisition, development, ownership, and management of multifamily properties and Commercial segment is engaged in the acquisition, ownership, and management of commercial real estate properties. Its holdings include apartments, office buildings, retail centers, and parcels of land.
Executives
Bradford A. Phillips director 1605 LBJ FREEWAY, SUITE 700, FARMERS BRANCH TX 75234
Erik L Johnson officer: Ex. Vice President and CFO
Realty Advisors, Llc 10 percent owner 1603 LBJ FREEWAY, SUITE 300, DALLAS TX 75234
Realty Advisors Inc 10 percent owner 1603 LBJ FREEWAY, SUITE 300, DALLAS TX 75234
Daniel J Moos officer: President & COO 1603 LBJ FREEWAY, SUITE 800, DALLAS TX 75234
International Health Products, Inc. 10 percent owner 2010 VALLEY VIEW LANE, SUITE 250, DALLAS TX 75234
Martha C Stephens director 248 SIMMONS, DRIVE, COPPELL TX 75019
Gene S Bertcher officer: EVP & Chief Acctg. Officer 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
David R. Fletcher officer: EVP & CFO C/O SOC TELEMED, INC., 1768 BUSINESS CENTER DRIVE, SUITE 100, RESTON VA 20190
Reagan K Vidal officer: Ex VP Mg Dir Capital Markets 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Alfred Crozier officer: EVP 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Canon James D Iii officer: Exec. V.P.-Multi-Family Const. 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
American Realty Investors Inc officer: Exec. V.P.-Multi-Family Const 1603 LBJ FREEWAY, SUITE 800, DALLAS TX 75234
Prime Income Asset Management Inc 10 percent owner
Robert A Jakuszewski director 1800 VALLEY VIEW LANE, DALLAS TX 75234