RMG Acquisition (RMG Acquisition) ROE % : -0.87% (As of Sep. 2020)

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What is RMG Acquisition ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. RMG Acquisition's annualized net income for the quarter that ended in Sep. 2020 was $-1.97 Mil. RMG Acquisition's average Total Stockholders Equity over the quarter that ended in Sep. 2020 was $225.98 Mil. Therefore, RMG Acquisition's annualized ROE % for the quarter that ended in Sep. 2020 was -0.87%.

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

RMG.U' s ROE % Range Over the Past 10 Years
Min: 0.17 Med: 1.85 Max: 1.85
Current: 0.17

During the past 2 years, RMG Acquisition's highest ROE % was 1.85%. The lowest was 0.17%. And the median was 1.85%.

RMG.U's ROE % is not ranked
in the Diversified Financial Services industry.
Industry Median: 0.66 vs RMG.U: 0.17

RMG Acquisition ROE % Historical Data

The historical data trend for RMG Acquisition'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 Acquisition ROE % Chart

RMG Acquisition Annual Data

Trend

Dec18

Dec19

ROE %

1.85

RMG Acquisition Quarterly Data
	Oct18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20
ROE %	Get a 7-Day Free Trial			1.17	0.44	1.10	-0.01	-0.87

Competitive Comparison of RMG Acquisition's ROE %

For the Shell Companies subindustry, RMG Acquisition'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 Acquisition's ROE % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, RMG Acquisition's ROE % distribution charts can be found below:

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

RMG Acquisition ROE % Calculation

RMG Acquisition's annualized ROE % for the fiscal year that ended in Dec. 2019 is calculated as

ROE %	=	Net Income (A: Dec. 2019 )	/	( (Total Stockholders Equity (A: Dec. 2018 )	+	Total Stockholders Equity (A: Dec. 2019 ))	/ count )
	=	2.086	/	( (0.022	+	225.613)	/ 2 )
	=	2.086	/	112.8175
	=	1.85 %

RMG Acquisition's annualized ROE % for the quarter that ended in Sep. 2020 is calculated as

ROE %	=	Net Income (Q: Sep. 2020 )	/	( (Total Stockholders Equity (Q: Jun. 2020 )	+	Total Stockholders Equity (Q: Sep. 2020 ))	/ count )
	=	-1.968	/	( (226.23	+	225.739)	/ 2 )
	=	-1.968	/	225.9845
	=	-0.87 %

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. 2020) net income data. ROE % is displayed in the 30-year financial page.

RMG Acquisition (NYSE:RMG.U) 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. 2020 )
=	Net Income	/	Total Stockholders Equity
=	-1.968	/	225.9845
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-1.968 / 0)	*	(0 / 234.8195)	*	(234.8195 / 225.9845)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	N/A %	*	0	*	1.0391
=	ROA %	*	Equity Multiplier
=	N/A %	*	1.0391
=	-0.87 %

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. 2020 )
=	Net Income	/	Total Stockholders Equity
=	-1.968	/	225.9845
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-1.968 / -2.444)	*	(-2.444 / -2.556)	*	(-2.556 / 0)	*	(0 / 234.8195)	*	(234.8195 / 225.9845)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.8052	*	0.9562	*	N/A %	*	0	*	1.0391
=	-0.87 %

Note: The net income data used here is four times the quarterly (Sep. 2020) net income data. The Revenue data used here is four times the quarterly (Sep. 2020) 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.

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 Acquisition ROE % Related Terms

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RMG Acquisition (RMG Acquisition) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » RMG Acquisition Corp (NYSE:RMG.U) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1411 Broadway, 16th Floor, New York, NY, USA, 10018

Website

http://www.rmgacquisition.com

RMG Acquisition Corp is a shell company.

Executives

Glazer Capital, Llc	10 percent owner	250 WEST 55TH STREET, SUITE 30A, NEW YORK NY 10019
Paul J Glazer	10 percent owner	250 WEST 55TH ST, SUITE 30A, NEW YORK NY 10019
Philip Kassin	director, 10 percent owner, officer: President and COO	3 COLUMBUS CIRCLE, NEW YORK NY 10019
Robert S. Mancini	director, 10 percent owner, officer: Chief Executive Officer	C/O RMG ACQUISITION CORP., 50 WEST STREET, SUITE 40C, NEW YORK NY 10006
David James Carpenter	director, 10 percent owner, officer: Chairman	C/O RMG ACQUISITION CORP., 50 WEST STREET, SUITE 40C, NEW YORK NY 10006
Rmg Sponsor, Llc	10 percent owner	C/O RMG ACQUISITION CORP. 50 WEST STREET, SUITE 40C NEW YORK NY 10006
Mkc Investments Llc	10 percent owner	C/O RMG ACQUISITION CORP., 50 WEST STREET, SUITE 40C, NEW YORK NY 10006
Steven Buffone	director	C/O RMG ACQUISITION CORP. 50 WEST STREET, SUITE 40C NEW YORK NY 10006
W. Thaddeus Miller	director	717 TEXAS AVENUE, SUITE 1000, HOUSTON TX 77002
Craig W. Broderick	director	C/O RMG ACQUISITION CORP., SUITE 40C, 50 WEST STREET, NEW YORK NY 10006
W Grant Gregory	director	C/O AMBAC FINANCIAL GROUP INC, 1 STATE STREET PLAZA, NEW YORK NY 10004
Heinz C Schimmelbusch	director