GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Cia Energetica DE Minas Gerais - Cemig (NYSE:CIG.C) » Definitions » ROE %

CIG.C (Cia Energetica DE Minas Gerais - Cemig) ROE % : 24.94% (As of Jun. 2024)


View and export this data going back to 2009. Start your Free Trial

What is Cia Energetica DE Minas Gerais - Cemig ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cia Energetica DE Minas Gerais - Cemig's annualized net income for the quarter that ended in Jun. 2024 was $1,254 Mil. Cia Energetica DE Minas Gerais - Cemig's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $5,028 Mil. Therefore, Cia Energetica DE Minas Gerais - Cemig's annualized ROE % for the quarter that ended in Jun. 2024 was 24.94%.

The historical rank and industry rank for Cia Energetica DE Minas Gerais - Cemig's ROE % or its related term are showing as below:

CIG.C' s ROE % Range Over the Past 10 Years
Min: 2.58   Med: 20.08   Max: 26.23
Current: 23.9

During the past 13 years, Cia Energetica DE Minas Gerais - Cemig's highest ROE % was 26.23%. The lowest was 2.58%. And the median was 20.08%.

CIG.C's ROE % is ranked better than
91.78% of 511 companies
in the Utilities - Regulated industry
Industry Median: 8.57 vs CIG.C: 23.90

Cia Energetica DE Minas Gerais - Cemig ROE % Historical Data

The historical data trend for Cia Energetica DE Minas Gerais - Cemig'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.

Cia Energetica DE Minas Gerais - Cemig ROE % Chart

Cia Energetica DE Minas Gerais - Cemig Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.18 15.21 19.40 20.55 25.62

Cia Energetica DE Minas Gerais - Cemig Quarterly Data
Jun19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 22.22 20.43 30.84 18.28 24.94

Competitive Comparison of Cia Energetica DE Minas Gerais - Cemig's ROE %

For the Utilities - Diversified subindustry, Cia Energetica DE Minas Gerais - Cemig'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.


Cia Energetica DE Minas Gerais - Cemig's ROE % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Cia Energetica DE Minas Gerais - Cemig's ROE % distribution charts can be found below:

* The bar in red indicates where Cia Energetica DE Minas Gerais - Cemig's ROE % falls into.



Cia Energetica DE Minas Gerais - Cemig ROE % Calculation

Cia Energetica DE Minas Gerais - Cemig's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=1176.375/( (4151.828+5030.818)/ 2 )
=1176.375/4591.323
=25.62 %

Cia Energetica DE Minas Gerais - Cemig's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=1254.032/( (5103.619+4952.192)/ 2 )
=1254.032/5027.9055
=24.94 %

* 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. 2024) net income data. ROE % is displayed in the 30-year financial page.


Cia Energetica DE Minas Gerais - Cemig  (NYSE:CIG.C) 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. 2024 )
=Net Income/Total Stockholders Equity
=1254.032/5027.9055
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1254.032 / 7007.66)*(7007.66 / 11034.8555)*(11034.8555 / 5027.9055)
=Net Margin %*Asset Turnover*Equity Multiplier
=17.9 %*0.635*2.1947
=ROA %*Equity Multiplier
=11.37 %*2.1947
=24.94 %

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. 2024 )
=Net Income/Total Stockholders Equity
=1254.032/5027.9055
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1254.032 / 1597.388) * (1597.388 / 1484.212) * (1484.212 / 7007.66) * (7007.66 / 11034.8555) * (11034.8555 / 5027.9055)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7851 * 1.0763 * 21.18 % * 0.635 * 2.1947
=24.94 %

Note: The net income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) 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.


Cia Energetica DE Minas Gerais - Cemig ROE % Related Terms

Thank you for viewing the detailed overview of Cia Energetica DE Minas Gerais - Cemig's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Cia Energetica DE Minas Gerais - Cemig Business Description

Address
Avenida Barbacena, 1200, Belo Horizonte, MG, BRA, 30190-131
Cia Energetica DE Minas Gerais - Cemig Formerly Energy Company of Minas Gerais is a Brazilian power company that generates, transmits, and distributes electricity. As one of the largest power companies in Brazil, the firm operates across most Brazilian states and Chile. The company has various subsidiaries and operates chiefly through its generation, transmission, distribution, and gas segments. The majority of the company's revenue is derived from electricity sales to consumers. The company generates power primarily through hydroelectric resources and secondarily through thermal and wind resources.