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Rose Rock Midstream LP (Rose Rock Midstream LP) ROE % : 18.31% (As of Jun. 2016)


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What is Rose Rock Midstream LP ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rose Rock Midstream LP's annualized net income for the quarter that ended in Jun. 2016 was $39.7 Mil. Rose Rock Midstream LP's average Total Stockholders Equity over the quarter that ended in Jun. 2016 was $216.7 Mil. Therefore, Rose Rock Midstream LP's annualized ROE % for the quarter that ended in Jun. 2016 was 18.31%.

The historical rank and industry rank for Rose Rock Midstream LP's ROE % or its related term are showing as below:

RRMS's ROE % is not ranked *
in the Oil & Gas industry.
Industry Median: 7.825
* Ranked among companies with meaningful ROE % only.

Rose Rock Midstream LP ROE % Historical Data

The historical data trend for Rose Rock Midstream LP'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.

Rose Rock Midstream LP ROE % Chart

Rose Rock Midstream LP Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial 0.33 7.81 12.31 18.73 18.44

Rose Rock Midstream LP Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 24.65 24.79 2.59 46.34 18.31

Competitive Comparison of Rose Rock Midstream LP's ROE %

For the Oil & Gas Integrated subindustry, Rose Rock Midstream LP'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.


Rose Rock Midstream LP's ROE % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Rose Rock Midstream LP's ROE % distribution charts can be found below:

* The bar in red indicates where Rose Rock Midstream LP's ROE % falls into.



Rose Rock Midstream LP ROE % Calculation

Rose Rock Midstream LP's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=49.673/( (308.489+230.205)/ 2 )
=49.673/269.347
=18.44 %

Rose Rock Midstream LP's annualized ROE % for the quarter that ended in Jun. 2016 is calculated as

ROE %=Net Income (Q: Jun. 2016 )/( (Total Stockholders Equity (Q: Mar. 2016 )+Total Stockholders Equity (Q: Jun. 2016 ))/ count )
=39.688/( (226.752+206.692)/ 2 )
=39.688/216.722
=18.31 %

* 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. 2016) net income data. ROE % is displayed in the 30-year financial page.


Rose Rock Midstream LP  (NYSE:RRMS) 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. 2016 )
=Net Income/Total Stockholders Equity
=39.688/216.722
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(39.688 / 676.576)*(676.576 / 1275.1325)*(1275.1325 / 216.722)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.87 %*0.5306*5.8837
=ROA %*Equity Multiplier
=3.11 %*5.8837
=18.31 %

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. 2016 )
=Net Income/Total Stockholders Equity
=39.688/216.722
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (39.688 / 39.688) * (39.688 / 89.424) * (89.424 / 676.576) * (676.576 / 1275.1325) * (1275.1325 / 216.722)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.4438 * 13.22 % * 0.5306 * 5.8837
=18.31 %

Note: The net income data used here is four times the quarterly (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 2016) 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.


Rose Rock Midstream LP ROE % Related Terms

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


Rose Rock Midstream LP (Rose Rock Midstream LP) Business Description

Traded in Other Exchanges
N/A
Address
Rose Rock Midstream LP is a Delaware limited partnership formed in 2011. The Company is engaged in the business of crude oil gathering, transportation, storage, distribution and marketing in Colorado, Kansas, Minnesota, Montana, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas and Wyoming. We operate in the Bakken Shale in North Dakota and Montana, the Denver-Julesburg Basin ("DJ Basin") and the Niobrara Shale in the Rocky Mountain region, and the Granite Wash and Mississippi Lime Play in the Mid-Continent region. The Company's operating business segments are Transportation, Facilities, and Supply & Logistics. The Transportation segment operates crude oil pipelines and truck transportation businesses. The Facilities segment operates crude oil storage and terminal businesses. The Supply and Logistics segment operates a crude oil marketing business which utilizes our Transportation and Facilities assets for marketing purposes. Its competitors include Cushing include Blueknight Energy Partners, L.P., Enbridge Energy Partners, L.P., Enterprise Products Partners L.P., Magellan Midstream Partners, L.P. and Plains All American Pipeline, L.P. The Company' operations are subject to extensive regulation.
Executives
Carlin G. Conner director, officer: President and CEO of GP 6120 SOUTH YALE AVE., SUITE 1500, TULSA OK 74136
Ronald A Ballschmiede director 1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380
Semgroup Corp director, 10 percent owner TWO WARREN PLACE, 6120 SOUTH YALE AVENUE, SUITE 1500, TULSA OK 74136-4231
Candice L Cheeseman officer: VP and General Counsel of GP 6120 SOUTH YALE AVE., SUITE 1500, TULSA OK 74136
Peter L Schwiering director, officer: COO of GP 6120 SOUTH YALE AVENUE, SUITE 700, TULSA OK 74136
Mark E Monroe director 7130 S LEWIS 10TH FL, TULSA OK 74136
Paul Largess officer: VP, CAO & Controller of GP 6120 S YALE STE 700, TULSA OK 74136
Norman J Szydlowski director, officer: Pres., CEO & Director of GP 6120 S. YALE, SUITE 700, TULSA OK 74136

Rose Rock Midstream LP (Rose Rock Midstream LP) Headlines

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