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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. LMP Automotive Holdings's annualized net income for the quarter that ended in Sep. 2021 was $19.1 Mil. LMP Automotive Holdings's average Total Stockholders Equity over the quarter that ended in Sep. 2021 was $32.9 Mil. Therefore, LMP Automotive Holdings's annualized ROE % for the quarter that ended in Sep. 2021 was 57.95%.
The historical rank and industry rank for LMP Automotive Holdings's ROE % or its related term are showing as below:
The historical data trend for LMP Automotive Holdings'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.
LMP Automotive Holdings Annual Data | |||||||||
Trend | Dec17 | Dec18 | Dec19 | Dec20 | |||||
ROE % | -56.24 | -105.65 | -31.48 | -21.41 |
For the Auto & Truck Dealerships subindustry, LMP Automotive Holdings'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.
For the Vehicles & Parts industry and Consumer Cyclical sector, LMP Automotive Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where LMP Automotive Holdings's ROE % falls into.
LMP Automotive Holdings's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as
ROE % | = | Net Income (A: Dec. 2020 ) | / | ( (Total Stockholders Equity (A: Dec. 2019 ) | + | Total Stockholders Equity (A: Dec. 2020 )) | / count ) |
= | -4.816 | / | ( (15.847 | + | 29.144) | / 2 ) | |
= | -4.816 | / | 22.4955 | ||||
= | -21.41 % |
LMP Automotive Holdings's annualized ROE % for the quarter that ended in Sep. 2021 is calculated as
ROE % | = | Net Income (Q: Sep. 2021 ) | / | ( (Total Stockholders Equity (Q: Jun. 2021 ) | + | Total Stockholders Equity (Q: Sep. 2021 )) | / count ) |
= | 19.076 | / | ( (30.442 | + | 35.396) | / 2 ) | |
= | 19.076 | / | 32.919 | ||||
= | 57.95 % |
* 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 (Sep. 2021) net income data. ROE % is displayed in the 30-year financial page.
LMP Automotive Holdings (OTCPK:LMPX) 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: Sep. 2021 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | 19.076 | / | 32.919 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (19.076 / 565.732) | * | (565.732 / 218.5245) | * | (218.5245 / 32.919) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 3.37 % | * | 2.5889 | * | 6.6382 |
= | ROA % | * | Equity Multiplier | ||
= | 8.72 % | * | 6.6382 | ||
= | 57.95 % |
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: Sep. 2021 ) | ||||||||
= | Net Income | / | Total Stockholders Equity | ||||||
= | 19.076 | / | 32.919 | ||||||
= | (Net Income / Pre-Tax Income) | * | (Pre-Tax Income / Operating Income) | * | (Operating Income / Revenue) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (19.076 / 23.848) | * | (23.848 / 24.684) | * | (24.684 / 565.732) | * | (565.732 / 218.5245) | * | (218.5245 / 32.919) |
= | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 0.7999 | * | 0.9661 | * | 4.36 % | * | 2.5889 | * | 6.6382 |
= | 57.95 % |
Note: The net income data used here is four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) 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.
Thank you for viewing the detailed overview of LMP Automotive Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Samer Tawfik | director, 10 percent owner, officer: President and CEO | C/O HERRICK FEINSTEIN LLP 2 PARK AVE NEW YORK NY 10016 |
Svetlana Limburger | director | C/O LMP AUTOMOTIVE HOLDINGS, INC. 500 EAST BROWARD BLVD., SUITE 1900 FT. LAUDERDALE FL 33394 |
Richard Aldahan | officer: Chief Operating Officer | 500 EAST BROWARD BLVD. SUITE 1900 FL 33394 |
William G Cohen | director | 117 HARBOR ROAD WESTPORT CT 06880 |
Robert Bellaflores | officer: Chief Financial Officer | 500 EAST BROWARD BLVD. SUITE 1900 FT. LAUDERDALE FL 33394 |
Evan Bernstein | officer: Chief Financial Officer | 500 EAST BROWARD BLVD. SUITE 1900 FT. LAUDERDALE FL 33394 |
Keith Locker | director | C/O GLENBOROUGH REALTY TRUST, 400 SOUTH EL CAMINO REAL, SUITE 1100, SAN MATEO CA 94402 |
Morris Robert J. Jr. | director | 4145 COLONEL VANDERHORST CIRCLE MT. PLEASANT SC 29466 |
Elias Nadim Nader | director | 2295 LEIGH AVENUE SAN JOSE CA 95124 |
Bryan Silverstein | officer: Chief Financial Officer | 601 NORTH STATE ROAD 7 PLANTATION FL 33317 |
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