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Tribune Media Co (Tribune Media Co) ROE % : 6.99% (As of Jun. 2019)


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What is Tribune Media Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tribune Media Co's annualized net income for the quarter that ended in Jun. 2019 was $255 Mil. Tribune Media Co's average Total Stockholders Equity over the quarter that ended in Jun. 2019 was $3,641 Mil. Therefore, Tribune Media Co's annualized ROE % for the quarter that ended in Jun. 2019 was 6.99%.

The historical rank and industry rank for Tribune Media Co's ROE % or its related term are showing as below:

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

Tribune Media Co ROE % Historical Data

The historical data trend for Tribune Media Co'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.

Tribune Media Co ROE % Chart

Tribune Media Co Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.42 -7.09 0.39 5.75 12.25

Tribune Media Co Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 10.00 6.30 15.24 12.69 6.99

Competitive Comparison of Tribune Media Co's ROE %

For the Broadcasting subindustry, Tribune Media Co'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.


Tribune Media Co's ROE % Distribution in the Media - Diversified Industry

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

* The bar in red indicates where Tribune Media Co's ROE % falls into.



Tribune Media Co ROE % Calculation

Tribune Media Co's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=412.571/( (3217.136+3517.908)/ 2 )
=412.571/3367.522
=12.25 %

Tribune Media Co's annualized ROE % for the quarter that ended in Jun. 2019 is calculated as

ROE %=Net Income (Q: Jun. 2019 )/( (Total Stockholders Equity (Q: Mar. 2019 )+Total Stockholders Equity (Q: Jun. 2019 ))/ count )
=254.628/( (3620.39+3661.094)/ 2 )
=254.628/3640.742
=6.99 %

* 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 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. 2019) net income data. ROE % is displayed in the 30-year financial page.


Tribune Media Co  (NYSE:TRCO) 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. 2019 )
=Net Income/Total Stockholders Equity
=254.628/3640.742
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(254.628 / 1936.144)*(1936.144 / 8441.457)*(8441.457 / 3640.742)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.15 %*0.2294*2.3186
=ROA %*Equity Multiplier
=3.02 %*2.3186
=6.99 %

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. 2019 )
=Net Income/Total Stockholders Equity
=254.628/3640.742
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (254.628 / 349.94) * (349.94 / 311.22) * (311.22 / 1936.144) * (1936.144 / 8441.457) * (8441.457 / 3640.742)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7276 * 1.1244 * 16.07 % * 0.2294 * 2.3186
=6.99 %

Note: The net income data used here is four times the quarterly (Jun. 2019) net income data. The Revenue data used here is four times the quarterly (Jun. 2019) 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.


Tribune Media Co ROE % Related Terms

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


Tribune Media Co (Tribune Media Co) Business Description

Traded in Other Exchanges
N/A
Address
515 North State Street, Chicago, IL, USA, 60654
Tribune is one of the country's largest media companies. It reaches more than 80% of U.S. households and is the only media organization with newspapers, TV stations, and Web sites in the nation's top three markets. Tribune's newspapers include the Los Angeles Times, Chicago Tribune, and Newsday. Its broadcasting group operates more than 20 television stations, superstation WGN on national cable, an AM radio station, and the Chicago Cubs baseball team.
Executives
Peter M Kern director, officer: CEO C/O EXPEDIA, INC., 333 108TH AVENUE NE, BELLEVUE WA 98004
Ross Levinsohn director 701 FIRST AVENUE, SUNNYVALE CA 94089
Peter E Murphy director ONE CAESARS PALACE DRIVE, LAS VEGAS NV 89109
Craig A Jacobson director C/O EXPEDIA, INC., 333 108TH AVENUE NE, BELLEVUE WA 98004
Edward P Lazarus officer: EVP, General Counsel & CSO C/O TRIBUNE COMPANY, 435 NORTH MICHIGAN AVENUE, CHICAGO IL 60611
Oaktree Capital Group Holdings Gp, Llc other: Former director and 10% owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital Group Holdings, L.p. other: Former director and 10% owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Tribune, L.p. other: Former director and 10% owner C/O OAKTREE CAPITAL MANAGEMENT, L.P. 333 S. GRAND AVENUE, 28TH FLOOR LOS ANGELES CA 90071
Oaktree Aif Investments, L.p. other: Former director and 10% owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Aif Investment Gp, Llc other: Former director and 10% owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Peter Liguori director, officer: President and CEO 1 DISCOVERY PLACE, SILVER SPRING MD 20910
Melanie Hughes officer: EVP, Human Resources 7 WORLD TRADE CENTER, 250 GREENWICH STREET, NEW YORK NY 10007
Steven Berns officer: EVP & CFO TRADEWEB MARKETS INC., 1177 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Kenneth Liang director C/O 77 BEALE ST., SAN FRANCISCO CA 94177
Bruce A Karsh director C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 S. GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071

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