ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. LookSmart's annualized net income for the quarter that ended in Jun. 2015 was $-3.97 Mil. LookSmart's average Total Stockholders Equity over the quarter that ended in Jun. 2015 was $1.13 Mil. Therefore, LookSmart's annualized ROE % for the quarter that ended in Jun. 2015 was -353.07%.
The historical rank and industry rank for LookSmart's ROE % or its related term are showing as below:
LOOK's ROE % is not ranked *
in the Interactive Media industry.
Industry Median: 0.01 * Ranked among companies with meaningful ROE % only.
LookSmart ROE % Historical Data
The historical data trend for LookSmart'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.
For the Internet Content & Information subindustry, LookSmart'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.
LookSmart's ROE % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, LookSmart's ROE % distribution charts can be found below:
* The bar in red indicates where LookSmart's ROE % falls into.
LookSmart ROE % Calculation
LookSmart's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as
* 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 (Jun. 2015) net income data.
ROE % is displayed in the 30-year financial page.
LookSmart (NAS:LOOK) 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:
Note:
The net income data used here is four times the quarterly (Jun. 2015) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
LookSmart ROE % Related Terms
Thank you for viewing the detailed overview of LookSmart's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
LookSmart Ltd was organized in 1996 and is incorporated in the State of Delaware. The Company is a search advertising network solutions Company that provides relevant solutions for search advertising customers. It operates in a large online search advertising ecosystem serving ads that target user queries on partner sites. It operates in the middle of this ecosystem, acquiring search queries from a variety of sources and matching them with the keywords of its search advertising customers. The Companys largest category of customers has been intermediaries, the majority of which purchase clicks to sell into the affiliate networks of the large search engine providers. Another category of customers are direct advertisers and their agencies whose objective is to obtain conversions or sales from the clicks. The last category of customers is self-service advertisers that sign-up online and pays by credit card. It offers search advertising customers targeted, pay-per-click (PPC) search via a monitored search advertising distribution network using the Companys AdCenter platform technology. The Companys search advertising network includes publishers and search advertising customers, including intermediaries and direct advertising customers and their agencies as well as self-service customers in the United States and certain other countries. The Companys application programming interface (API) allows search advertising customers and their advertising agencies to connect any type of marketing or reporting software with minimal effort for easier access, management, and optimization of search advertising campaigns. It also offers publishers licensed private-label search advertiser network solutions based on its AdCenter platform technology (Publisher Solutions). Publisher Solutions consist of hosted auction-based ad serving with an ad backfill capability that allows publishers and portals to manage their advertiser relationships, distribution channels and accounts. The Companys trademarks include LookSmart. It is subject to a number of domestic state and federal laws that affect companies conducting business on the Internet.
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