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Ruby Tuesday (Ruby Tuesday) ROE % : -13.01% (As of Aug. 2017)


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What is Ruby Tuesday ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ruby Tuesday's annualized net income for the quarter that ended in Aug. 2017 was $-39.4 Mil. Ruby Tuesday's average Total Stockholders Equity over the quarter that ended in Aug. 2017 was $302.6 Mil. Therefore, Ruby Tuesday's annualized ROE % for the quarter that ended in Aug. 2017 was -13.01%.

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

RT's ROE % is not ranked *
in the Restaurants industry.
Industry Median: 8.345
* Ranked among companies with meaningful ROE % only.

Ruby Tuesday ROE % Historical Data

The historical data trend for Ruby Tuesday'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.

Ruby Tuesday ROE % Chart

Ruby Tuesday Annual Data
Trend May08 May09 May10 May11 May12 May13 May14 May15 May16 May17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -7.21 -13.16 -0.69 -11.61 -29.68

Ruby Tuesday Quarterly Data
Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 -40.86 -43.22 -24.46 -11.18 -13.01

Competitive Comparison of Ruby Tuesday's ROE %

For the Restaurants subindustry, Ruby Tuesday'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.


Ruby Tuesday's ROE % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Ruby Tuesday's ROE % distribution charts can be found below:

* The bar in red indicates where Ruby Tuesday's ROE % falls into.



Ruby Tuesday ROE % Calculation

Ruby Tuesday's annualized ROE % for the fiscal year that ended in May. 2017 is calculated as

ROE %=Net Income (A: May. 2017 )/( (Total Stockholders Equity (A: May. 2016 )+Total Stockholders Equity (A: May. 2017 ))/ count )
=-106.14/( (407.78+307.366)/ 2 )
=-106.14/357.573
=-29.68 %

Ruby Tuesday's annualized ROE % for the quarter that ended in Aug. 2017 is calculated as

ROE %=Net Income (Q: Aug. 2017 )/( (Total Stockholders Equity (Q: May. 2017 )+Total Stockholders Equity (Q: Aug. 2017 ))/ count )
=-39.384/( (307.366+297.898)/ 2 )
=-39.384/302.632
=-13.01 %

* 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 (Aug. 2017) net income data. ROE % is displayed in the 30-year financial page.


Ruby Tuesday  (NYSE:RT) 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: Aug. 2017 )
=Net Income/Total Stockholders Equity
=-39.384/302.632
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-39.384 / 869.228)*(869.228 / 712.332)*(712.332 / 302.632)
=Net Margin %*Asset Turnover*Equity Multiplier
=-4.53 %*1.2203*2.3538
=ROA %*Equity Multiplier
=-5.53 %*2.3538
=-13.01 %

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: Aug. 2017 )
=Net Income/Total Stockholders Equity
=-39.384/302.632
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-39.384 / -39.18) * (-39.18 / -39.18) * (-39.18 / 869.228) * (869.228 / 712.332) * (712.332 / 302.632)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0052 * 1 * -4.51 % * 1.2203 * 2.3538
=-13.01 %

Note: The net income data used here is four times the quarterly (Aug. 2017) net income data. The Revenue data used here is four times the quarterly (Aug. 2017) 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.


Ruby Tuesday ROE % Related Terms

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


Ruby Tuesday (Ruby Tuesday) Business Description

Traded in Other Exchanges
N/A
Address
Ruby Tuesday Inc was incorporated in the state of Georgia. The first Ruby Tuesday(r) restaurant was opened in 1972 in Knoxville, Tennessee near the campus of the University of Tennessee. The Company owns, operates and franchises the Ruby Tuesday casual dining restaurant chain. The Company is subject to a variety of federal, state, and international laws governing franchise sales and the franchise relationship.
Executives
Rhonda J Parish officer: See Remarks 203 EAST MAINST P 12-02, SPARTANBURG SC 29319
Bernard Jr Lanigan director 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Cardwell F Lane Jr director C/O RUBY TUESDAY, INC., 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Stephen I Sadove director
James J Buettgen director, officer: President & Chief Exec Officer 150 WEST CHURCH AVE, MARYVILLE TN 37801
Jill Golder officer: EVP, Chief Financial Officer 305 HARTMANN DRIVE, LEBANON TN 37087
Scarlett May officer: SVP,Chief Legal Officer & Sec. 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Todd Burrowes officer: RT Concept Pres,Chief Ops Ofcr 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Matthew A Drapkin director 10 CORBIN DRIVE, 3RD FLOOR, DARIEN CT 06820
Michael O Moore officer: EVP - Chief Financial Officer 150 W CHURCH AVE, RUBY TUESDAY, INC., MARYVILLE TN 37801
Kimberly Grant officer: Pres.,Ruby Tuesday Concept 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Steven R Becker director 5525 NAKOMA DRIVE, DALLAS TX 75209
Beall Samuel E Iii director, officer: Chief Executive Officer RUBY TUESDAY INC 150 WEST CHURCH AVE MARYVILLE TN 37801
Donald R Ratajczak director THE HARTSFIELD COLONNADE, 4893 RIVERDALE RD STE 260, ATLANTA GA 30337
Haslam James A Iii director 165 MADISON AVENUE, MEMPHIS TN 38103

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