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RMG Networks Holding (RMG Networks Holding) ROE % : -455.23% (As of Jun. 2018)


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What is RMG Networks Holding ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. RMG Networks Holding's annualized net income for the quarter that ended in Jun. 2018 was $-8.57 Mil. RMG Networks Holding's average Total Stockholders Equity over the quarter that ended in Jun. 2018 was $1.88 Mil. Therefore, RMG Networks Holding's annualized ROE % for the quarter that ended in Jun. 2018 was -455.23%.

The historical rank and industry rank for RMG Networks Holding's ROE % or its related term are showing as below:

RMGN's ROE % is not ranked *
in the Business Services industry.
Industry Median: 8.58
* Ranked among companies with meaningful ROE % only.

RMG Networks Holding ROE % Historical Data

The historical data trend for RMG Networks Holding'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.

RMG Networks Holding ROE % Chart

RMG Networks Holding Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial - -238.25 -364.26 -46.73 -65.78

RMG Networks Holding Quarterly Data
Mar13 Sep13 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 -55.27 -105.05 -53.20 -261.66 -455.23

Competitive Comparison of RMG Networks Holding's ROE %

For the Specialty Business Services subindustry, RMG Networks Holding'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.


RMG Networks Holding's ROE % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, RMG Networks Holding's ROE % distribution charts can be found below:

* The bar in red indicates where RMG Networks Holding's ROE % falls into.



RMG Networks Holding ROE % Calculation

RMG Networks Holding'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 )
=-5.193/( (10.085+5.705)/ 2 )
=-5.193/7.895
=-65.78 %

RMG Networks Holding'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 )
=-8.572/( (3.036+0.73)/ 2 )
=-8.572/1.883
=-455.23 %

* 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.


RMG Networks Holding  (NAS:RMGN) 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
=-8.572/1.883
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-8.572 / 34.38)*(34.38 / 19.7615)*(19.7615 / 1.883)
=Net Margin %*Asset Turnover*Equity Multiplier
=-24.93 %*1.7397*10.4947
=ROA %*Equity Multiplier
=-43.37 %*10.4947
=-455.23 %

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
=-8.572/1.883
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-8.572 / -8.572) * (-8.572 / -5.408) * (-5.408 / 34.38) * (34.38 / 19.7615) * (19.7615 / 1.883)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 1.5851 * -15.73 % * 1.7397 * 10.4947
=-455.23 %

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.


RMG Networks Holding ROE % Related Terms

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RMG Networks Holding (RMG Networks Holding) Business Description

Traded in Other Exchanges
N/A
Address
RMG Networks Holding Corp is a United States based company. It provides enterprise-class digital signage solutions that are relied upon by a majority of Fortune 100 companies and thousands of overall customers in locations worldwide. Its products are proprietary software, software-embedded hardware, maintenance and support services, content and creative services, installation services and third-party displays. The company delivers complete end-to-end intelligent visual communication solutions to its clients for critical contact center, supply chain, internal communications, hospitality, retail and other applications with a large concentration of customers in the financial services, telecommunications, manufacturing, healthcare, pharmaceutical, and in federal, state and local governments.
Executives
Gregory H Sachs director, 10 percent owner, officer: Executive Chairman SACHS CAPITAL GROUP, 2132 DEEP WATER LANE, SUITE 232, NAPERVILLE IL 60564
Par Capital Management Inc 10 percent owner 200 CLARENDON STREET, FL 48, BOSTON MA 02116
Par Investment Partners Lp 10 percent owner 200 CLARENDON STREET, FL 48, BOSTON MA 02116
Par Group, L.p. 10 percent owner ONE INTERNATIONAL PLACE, SUITE 2401, BOSTON MA 02110
Donna L Parlapiano director 200 SW 1ST AVE, SUITE 1600, FORT LAUDERDALE FL 33301