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Rivian Automotive ROE %

: -38.99% (As of Jun. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Rivian Automotive's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $-6,848.0 Mil. Rivian Automotive's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $17,564.0 Mil. Therefore, Rivian Automotive's annualized ROE % for the quarter that ended in Jun. 2022 was -38.99%.

The historical rank and industry rank for Rivian Automotive's ROE % or its related term are showing as below:

RIVN' s ROE % Range Over the Past 10 Years
Min: -71.92   Med: -51.72   Max: -51.72
Current: -71.92

During the past 3 years, Rivian Automotive's highest ROE % was -51.72%. The lowest was -71.92%. And the median was -51.72%.

RIVN's ROE % is ranked worse than
95.63% of 1214 companies
in the Vehicles & Parts industry
Industry Median: 5.67 vs RIVN: -71.92

Rivian Automotive ROE % Historical Data

The historical data trend for Rivian Automotive'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.

Rivian Automotive Annual Data
Trend Dec19 Dec20 Dec21
ROE %
- - -51.72

Rivian Automotive Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - -123.77 -33.74 -38.99

Competitive Comparison

For the Auto Manufacturers subindustry, Rivian Automotive'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.

   

Rivian Automotive ROE % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Rivian Automotive's ROE % distribution charts can be found below:

* The bar in red indicates where Rivian Automotive's ROE % falls into.



Rivian Automotive ROE % Calculation

Rivian Automotive's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=-4688/( (-1384+19514)/ 2 )
=-4688/9065
=-51.72 %

Rivian Automotive's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=-6848/( (18260+16868)/ 2 )
=-6848/17564
=-38.99 %

* 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 attributable to common stockholders 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 attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Rivian Automotive  (NAS:RIVN) 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: Jun. 2022 )
=Net Income/Total Stockholders Equity
=-6848/17564
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-6848 / 1456)*(1456 / 20734)*(20734 / 17564)
=Net Margin %*Asset Turnover*Equity Multiplier
=-470.33 %*0.0702*1.1805
=ROA %*Equity Multiplier
=-33.02 %*1.1805
=-38.99 %

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: Jun. 2022 )
=Net Income/Total Stockholders Equity
=-6848/17564
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (-6848 / -6836) * (-6836 / -6832) * (-6832 / 1456) * (1456 / 20734) * (20734 / 17564)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0018 * 1.0006 * -469.23 % * 0.0702 * 1.1805
=-38.99 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders 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.


Rivian Automotive ROE % Related Terms

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


Rivian Automotive Business Description

Rivian Automotive logo
Traded in Other Exchanges
Address
14600 Myford Road, Irvine, CA, USA, 92606
Rivian Automotive Inc designs, develops and manufactures category-defining electric vehicles and accessories.
Executives
Flatley Jay T director 9885 TOWNE CENTRE DR SAN DIEGO CA 92121
Thomas-graham Pamela director C/O IDENIX PHARMACEUTICALS, INC. 60 HAMPSHIRE STREET CAMBRIDGE MA 02139
Baker Jeff officer: Chief Accounting Officer 1221 BROADWAY OAKLAND CA 94612
Boone Karen director 15 KOCH ROAD SUITE J CORTE MADERA CA 94925
Amazon Com Inc director, 10 percent owner 410 TERRY AVENUE NORTH SEATTLE WA 98109
Ford Motor Co 10 percent owner ONE AMERICAN RD DEARBORN MI 48126
Marcario Rose M director 21101 OXNARD STREET WOODLAND HILLS CA 91367
Mcdonough Claire officer: Chief Financial Officer C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Krawiec Peter director C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Scaringe Robert J director, officer: Chief Executive Officer C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Behl Jiten officer: Chief Growth Officer C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Schwartz Sanford Harold director C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Global Oryx Group Holding Co Ltd 10 percent owner 15 ESPLANADE ST. HELIER Y9 JE1 1RB

Rivian Automotive Headlines

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