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JAVELIN Mortgage Investment (JAVELIN Mortgage Investment) ROE % : 17.89% (As of Dec. 2015)


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What is JAVELIN Mortgage Investment ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. JAVELIN Mortgage Investment's annualized net income for the quarter that ended in Dec. 2015 was $20.78 Mil. JAVELIN Mortgage Investment's average Total Stockholders Equity over the quarter that ended in Dec. 2015 was $116.17 Mil. Therefore, JAVELIN Mortgage Investment's annualized ROE % for the quarter that ended in Dec. 2015 was 17.89%.

The historical rank and industry rank for JAVELIN Mortgage Investment's ROE % or its related term are showing as below:

JMI's ROE % is not ranked *
in the REITs industry.
Industry Median: 4.28
* Ranked among companies with meaningful ROE % only.

JAVELIN Mortgage Investment ROE % Historical Data

The historical data trend for JAVELIN Mortgage Investment'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.

JAVELIN Mortgage Investment ROE % Chart

JAVELIN Mortgage Investment Annual Data
Trend Dec13 Dec14 Dec15
ROE %
-25.56 -14.00 -0.23

JAVELIN Mortgage Investment Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 -48.16 -18.14 51.77 -52.24 17.89

Competitive Comparison of JAVELIN Mortgage Investment's ROE %

For the REIT - Diversified subindustry, JAVELIN Mortgage Investment'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.


JAVELIN Mortgage Investment's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, JAVELIN Mortgage Investment's ROE % distribution charts can be found below:

* The bar in red indicates where JAVELIN Mortgage Investment's ROE % falls into.



JAVELIN Mortgage Investment ROE % Calculation

JAVELIN Mortgage Investment's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=-0.29/( (139.608+112.35)/ 2 )
=-0.29/125.979
=-0.23 %

JAVELIN Mortgage Investment's annualized ROE % for the quarter that ended in Dec. 2015 is calculated as

ROE %=Net Income (Q: Dec. 2015 )/( (Total Stockholders Equity (Q: Sep. 2015 )+Total Stockholders Equity (Q: Dec. 2015 ))/ count )
=20.784/( (119.994+112.35)/ 2 )
=20.784/116.172
=17.89 %

* 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. 2015) net income data. ROE % is displayed in the 30-year financial page.


JAVELIN Mortgage Investment  (NYSE:JMI) 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. 2015 )
=Net Income/Total Stockholders Equity
=20.784/116.172
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(20.784 / 27.86)*(27.86 / 905.075)*(905.075 / 116.172)
=Net Margin %*Asset Turnover*Equity Multiplier
=74.6 %*0.0308*7.7908
=ROA %*Equity Multiplier
=2.3 %*7.7908
=17.89 %

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. 2015 )
=Net Income/Total Stockholders Equity
=20.784/116.172
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (20.784 / 20.784) * (20.784 / 27.86) * (27.86 / 905.075) * (905.075 / 116.172)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1 * 74.6 % * 0.0308 * 7.7908
=17.89 %

Note: The net income data used here is four times the quarterly (Dec. 2015) net income data. The Revenue data used here is four times the quarterly (Dec. 2015) 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.


JAVELIN Mortgage Investment ROE % Related Terms

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


JAVELIN Mortgage Investment (JAVELIN Mortgage Investment) Business Description

Traded in Other Exchanges
N/A
Address
JAVELIN Mortgage Investment Corp was incorporated on June 18, 2012. The Company invest in and manage a leveraged portfolio of residential mortgage backed securities and mortgage loans. It is managed by ARRM, pursuant to the Management Agreement. The Company competes with mortgage REITs, mortgage finance and specialty finance companies, savings and loan associations, banks, mortgage bankers, insurance companies, mutual funds, institutional investors, investment banking firms, other lenders, governmental bodies and other entities.
Executives
Daniel C Staton director, officer: Chairman of the Board HOLLAND & KNIGHT LLP, 701 BRICKELL AVENUE, SUITE 3300, MIAMI FL 33131
Stewart J Paperin director HOLLAND & KNIGHT LLP, 701 BRICKELL AVENUE, SUITE 3300, MIAMI FL 33131
John C Chrystal director C/O BANCORP, INC., 409 SILVERSIDE ROAD, SUITE 105, WILMINGTON DE 19809
Hollihan John P Iii director HOLLAND & KNIGHT LLP, 701 BRICKELL AVENUE, SUITE 3300, MIAMI FL 33131
Marc H Bell director 6800 BROKEN SOUND PARKWAY, SUITE 200, BOCA RATON FL 33487
Jeffrey J Zimmer director, officer: Co-CEO and President 3001 OCEAN DRIVE, SUITE 201, VERO BEACH FL 32963
Robert C Hain director HOLLAND & KNIGHT LLP, 701 BRICKELL AVENUE, SUITE 3300, MIAMI FL 33131
Scott Ulm director, officer: Co-CEO and CIO 3005 HAMMOCK WAY, VERO BEACH FL 32963
Thomas K Guba director 3001 OCEAN DRIVE, SUITE 201, VERO BEACH FL 32963
James R Mountain officer: Chief Financial Officer ARMOUR RESIDENTIAL REIT, INC., 3001 OCEAN DRIVE, SUITE 201, VERO BEACH FL 32963
Mark Gruber officer: Chief Operating Officer 3001 OCEAN DRIVE, SUITE 201, VERO BEACH FL 32963

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