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Chime Communications (Chime Communications) ROE % : -1.59% (As of Jun. 2015)


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What is Chime Communications ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Chime Communications's annualized net income for the quarter that ended in Jun. 2015 was $-4.5 Mil. Chime Communications's average Total Stockholders Equity over the quarter that ended in Jun. 2015 was $286.2 Mil. Therefore, Chime Communications's annualized ROE % for the quarter that ended in Jun. 2015 was -1.59%.

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

CICPF's ROE % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.57
* Ranked among companies with meaningful ROE % only.

Chime Communications ROE % Historical Data

The historical data trend for Chime Communications'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.

Chime Communications ROE % Chart

Chime Communications Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.15 8.49 -0.83 -6.47 4.97

Chime Communications Semi-Annual Data
Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15
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 -3.43 -9.82 5.82 4.44 -1.59

Competitive Comparison of Chime Communications's ROE %

For the Advertising Agencies subindustry, Chime Communications'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.


Chime Communications's ROE % Distribution in the Media - Diversified Industry

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

* The bar in red indicates where Chime Communications's ROE % falls into.



Chime Communications ROE % Calculation

Chime Communications's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=14.801/( (298.218+297.358)/ 2 )
=14.801/297.788
=4.97 %

Chime Communications's annualized ROE % for the quarter that ended in Jun. 2015 is calculated as

ROE %=Net Income (Q: Jun. 2015 )/( (Total Stockholders Equity (Q: Dec. 2014 )+Total Stockholders Equity (Q: Jun. 2015 ))/ count )
=-4.538/( (297.358+275.12)/ 2 )
=-4.538/286.239
=-1.59 %

* 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 two times the semi-annual (Jun. 2015) net income data. ROE % is displayed in the 30-year financial page.


Chime Communications  (OTCPK:CICPF) 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. 2015 )
=Net Income/Total Stockholders Equity
=-4.538/286.239
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.538 / 574.722)*(574.722 / 612.904)*(612.904 / 286.239)
=Net Margin %*Asset Turnover*Equity Multiplier
=-0.79 %*0.9377*2.1412
=ROA %*Equity Multiplier
=-0.74 %*2.1412
=-1.59 %

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. 2015 )
=Net Income/Total Stockholders Equity
=-4.538/286.239
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-4.538 / 4.386) * (4.386 / 8.85) * (8.85 / 574.722) * (574.722 / 612.904) * (612.904 / 286.239)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -1.0347 * 0.4956 * 1.54 % * 0.9377 * 2.1412
=-1.59 %

Note: The net income data used here is two times the semi-annual (Jun. 2015) net income data. The Revenue data used here is two times the semi-annual (Jun. 2015) 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.


Chime Communications ROE % Related Terms

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


Chime Communications (Chime Communications) Business Description

Traded in Other Exchanges
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Address
Chime Communications PLC was incorporated in the United Kingdom on January 29, 1986. The Company provides advertising, sports marketing, market research, direct marketing, design and event management consultancy. Its business segments are Sport & Entertainment, Advertising and Marketing Services (AMS), Healthcare, and Insight & Engagement. In sport & entertainment segment CSM Sport & Entertainment works with brands, rights holders, governing bodies, governments and athletes across the globe, CSM specialises in strategic consultancy, rights sales, sponsorship activation, hospitality, branding and wayfinding, athlete management and communications across sporting events. The advertising and marketing services division includes the VCCP Partnership and the Chime Specialist Group. VCCP operates in advertising and marketing services, direct marketing, digital communication, search relations, point of sale, sales promotion, data consultancy and technical design, multimedia content, youth marketing and experiential, marketing consulting, retail and shopper marketing and specialist media planning and buying. The Specialist Group includes agencies operating in niche markets; corporate responsibility and sustainability consultancy; for technology brands; providing customer reference and advocacy and; in professional and financial services. The insight and engagement division brings together researchers, technologists and insight specialists who deliver to clients, in real time, actionable solutions. The division has particular expertise in delivering clients in FMCG, financial services, utilities and retail with experience performance improvement plans, mystery shopping programmes and advertising and brand tracking. The Insight & Engagement division includes specialist brands such as Watermelon - a specialist digital agency, Cherry Picked - a specialist recruitment agency, Facts International - a specialist fieldwork agency and full service agencies Opinion Leader and CIE. In healthcare segment OPEN Health is a healthcare communications and market access group. It comprises ten different specialist businesses that bring a breadth of expertise focused principally on pharma, health device and diagnostic clients. OPEN Health's companies cover aspects of the communications mix including advertising, PR, medical communications, market access consulting, real world data collection, market research and patient engagement programmes.

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