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Liberty Latin America (Liberty Latin America) ROE %

: -22.65% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Liberty Latin America's annualized net income for the quarter that ended in Dec. 2023 was $-411 Mil. Liberty Latin America's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,816 Mil. Therefore, Liberty Latin America's annualized ROE % for the quarter that ended in Dec. 2023 was -22.65%.

The historical rank and industry rank for Liberty Latin America's ROE % or its related term are showing as below:

LILA' s ROE % Range Over the Past 10 Years
Min: -23.85   Med: -9.49   Max: 59.41
Current: -2.94

During the past 11 years, Liberty Latin America's highest ROE % was 59.41%. The lowest was -23.85%. And the median was -9.49%.

LILA's ROE % is ranked worse than
76.15% of 369 companies
in the Telecommunication Services industry
Industry Median: 6.98 vs LILA: -2.94

Liberty Latin America ROE % Historical Data

The historical data trend for Liberty Latin America'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.

Liberty Latin America Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.41 -23.85 -18.24 -8.25 -4.00

Liberty Latin America Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 29.22 -10.42 8.21 12.93 -22.65

Competitive Comparison

For the Telecom Services subindustry, Liberty Latin America'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.


Liberty Latin America ROE % Distribution

For the Telecommunication Services industry and Communication Services sector, Liberty Latin America's ROE % distribution charts can be found below:

* The bar in red indicates where Liberty Latin America's ROE % falls into.



Liberty Latin America ROE % Calculation

Liberty Latin America'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 )
=-73.6/( (1918.8+1763.5)/ 2 )
=-73.6/1841.15
=-4.00 %

Liberty Latin America'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 )
=-411.2/( (1867.6+1763.5)/ 2 )
=-411.2/1815.55
=-22.65 %

* 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.


Liberty Latin America  (NAS:LILA) 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
=-411.2/1815.55
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-411.2 / 4654.4)*(4654.4 / 13451.55)*(13451.55 / 1815.55)
=Net Margin %*Asset Turnover*Equity Multiplier
=-8.83 %*0.346*7.4091
=ROA %*Equity Multiplier
=-3.06 %*7.4091
=-22.65 %

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
=-411.2/1815.55
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-411.2 / -440.8) * (-440.8 / 510.4) * (510.4 / 4654.4) * (4654.4 / 13451.55) * (13451.55 / 1815.55)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9328 * -0.8636 * 10.97 % * 0.346 * 7.4091
=-22.65 %

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.


Liberty Latin America ROE % Related Terms

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


Liberty Latin America (Liberty Latin America) Business Description

Traded in Other Exchanges
Address
2 Church Street, Hamilton, BMU, HM 11
Liberty Latin America Ltd is a telecommunications company. It is a provider of video, broadband internet, fixed-line telephony and mobile services to residential and business customers. The company's reportable segments include C&W Caribbean and Networks, C&W Panama, VTR, Liberty Puerto Rico and Costa Rica.
Executives
John M Winter officer: SVP, CLO AND SECRETARY 1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Eric Louis Zinterhofer director C/O SEARCHLIGHT CAPITAL PARTNERS GP, LP, 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Balan Nair director, officer: President and CEO 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806
John C Malone 10 percent owner 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Paul A Gould director 711 FIFTH AVENUE, 9TH FLOOR, NEW YORK NY 10022
Christopher J Noyes officer: SVP, CHIEF FINANCIAL OFFICER 1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Brian D Zook officer: MD, CHIEF ACCOUNTING OFFICER 1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Daniel E. Sanchez director C/O DISCOVERY, INC., 8403 COLESVILLE ROAD, SILVER SPRING MD 20910
Vivek Khemka officer: SVP, CT&PO C/O DISH NETWORK CORPORATION, 9601 S MERIDIAN BLVD, ENGLEWOOD CO 80112
Michael T Fries director, officer: Executive Chairman C/O LIBERTY GLOBAL, INC., 1550 WEWATTA STREET STE 1000, DENVER CO 80202
Bracken Charles H R director 161 HAMMERSMITH ROAD, LONDON ENGLAND X0 W6 8BS
Betzalel Kenigsztein officer: SVP, CHIEF OPERATING OFFICER 1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Miranda Curtis director C/O LIBERTY GLOBAL, INC., 1550 WEWATTA STREET STE 1000, DENVER CO 80202
Brendan J Paddick director 1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Angoitia Alfonso De director 1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202

Liberty Latin America (Liberty Latin America) Headlines