GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » RLJ Entertainment Inc (NAS:RLJE) » Definitions » ROE %

RLJ Entertainment (RLJ Entertainment) ROE % : -74.35% (As of Jun. 2018)


View and export this data going back to 2011. Start your Free Trial

What is RLJ Entertainment ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. RLJ Entertainment's annualized net income for the quarter that ended in Jun. 2018 was $-8.06 Mil. RLJ Entertainment's average Total Stockholders Equity over the quarter that ended in Jun. 2018 was $10.84 Mil. Therefore, RLJ Entertainment's annualized ROE % for the quarter that ended in Jun. 2018 was -74.35%.

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

RLJE's ROE % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.38
* Ranked among companies with meaningful ROE % only.

RLJ Entertainment ROE % Historical Data

The historical data trend for RLJ Entertainment'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.

RLJ Entertainment ROE % Chart

RLJ Entertainment Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial -42.58 -44.92 -719.30 - -43.40

RLJ Entertainment Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 539.79 -197.83 -74.35

Competitive Comparison of RLJ Entertainment's ROE %

For the Broadcasting subindustry, RLJ Entertainment'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.


RLJ Entertainment's ROE % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, RLJ Entertainment's ROE % distribution charts can be found below:

* The bar in red indicates where RLJ Entertainment's ROE % falls into.



RLJ Entertainment ROE % Calculation

RLJ Entertainment's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=-6.126/( (12.688+15.543)/ 2 )
=-6.126/14.1155
=-43.40 %

RLJ Entertainment's annualized ROE % for the quarter that ended in Jun. 2018 is calculated as

ROE %=Net Income (Q: Jun. 2018 )/( (Total Stockholders Equity (Q: Mar. 2018 )+Total Stockholders Equity (Q: Jun. 2018 ))/ count )
=-8.056/( (10.843+10.828)/ 2 )
=-8.056/10.8355
=-74.35 %

* 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. 2018) net income data. ROE % is displayed in the 30-year financial page.


RLJ Entertainment  (NAS:RLJE) 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. 2018 )
=Net Income/Total Stockholders Equity
=-8.056/10.8355
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-8.056 / 85.896)*(85.896 / 147.3305)*(147.3305 / 10.8355)
=Net Margin %*Asset Turnover*Equity Multiplier
=-9.38 %*0.583*13.597
=ROA %*Equity Multiplier
=-5.47 %*13.597
=-74.35 %

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. 2018 )
=Net Income/Total Stockholders Equity
=-8.056/10.8355
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-8.056 / -9.196) * (-9.196 / 2.64) * (2.64 / 85.896) * (85.896 / 147.3305) * (147.3305 / 10.8355)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.876 * -3.4833 * 3.07 % * 0.583 * 13.597
=-74.35 %

Note: The net income data used here is four times the quarterly (Jun. 2018) net income data. The Revenue data used here is four times the quarterly (Jun. 2018) 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.


RLJ Entertainment ROE % Related Terms

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


RLJ Entertainment (RLJ Entertainment) Business Description

Traded in Other Exchanges
N/A
Address
RLJ Entertainment Inc is a global entertainment content distribution company. It is a film and television licensee focusing on action, thriller, and horror independent feature films. RLJE operates through three segments: The Digital Channels segment, the IP Licensing segment and the Wholesale Distribution segment. It generates a majority of its revenue from the Wholesale Distribution segment.
Executives
H. Van Sinclair director 780 THIRD AVENUE, 15TH FLOOR, NEW YORK NY 10017
Judd Dayton director 878 S. DENTON TAP RD., SUITE 220, COPPELL TX 75019
Scott R Royster director 5900 PRINCESS GARDEN PARKWAY, 7TH FL, LANHAM MD 20706
Wolverine Asset Management Llc director 175 WEST JACKSON, SUITE 340, CHICAGO IL 60604
Wolverine Holdings, L.p. director 175 W. JACKSON BLVD. SUITE 200 CHICAGO IL 60604
Wolverine Trading Partners, Inc. director 175 WEST JACKSON BLVD SUITE 200 CHICAGO IL 60604
Robert Bellick director 175 W. JACKSON BLVD. SUITE 200 CHICAGO IL 60604
Christopher Gust director 175 W. JACKSON BLVD. SUITE 200 CHICAGO IL 60604
Robert L Johnson director, officer: Chairman of the Board C/O RLJ COMPANIES, 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Morris Goldfarb director C/O G-III APPAREL GROUP, 345 W 37TH ST, NY NY 10018
Charles E Davidson 10 percent owner C/O WEXFORD CAPITAL LP, 777 SOUTH FLAGLER DRIVE, SUITE 602, WEST PALM BEACH FL 33401
Wexford Capital Lp 10 percent owner 777 WEST PUTNAM AVENUE, 1ST FLOOR, GREENWICH CT 06830
Joseph Jacobs 10 percent owner C/O WEXFORD CAPITAL LP, 777 SOUTH FLAGLER DRIVE, SUITE 602 EAST, WEST PALM BEACH FL 33401
Wexford Gp Llc 10 percent owner C/O WEXFORD CAPITAL LP, 777 SOUTH FLAGLER DRIVE, SUITE 602 EAST, WEST PALM BEACH CT 33401
Wexford Spectrum Investors Llc 10 percent owner 411 W PUTNAM AVENUE, GREENWICH CT 06830