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EFC (Ellington Financial) ROE % : 5.82% (As of Sep. 2024)


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What is Ellington Financial ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ellington Financial's annualized net income for the quarter that ended in Sep. 2024 was $92.0 Mil. Ellington Financial's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $1,580.0 Mil. Therefore, Ellington Financial's annualized ROE % for the quarter that ended in Sep. 2024 was 5.82%.

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

EFC' s ROE % Range Over the Past 10 Years
Min: -5.63   Med: 5.85   Max: 12.26
Current: 8.93

During the past 13 years, Ellington Financial's highest ROE % was 12.26%. The lowest was -5.63%. And the median was 5.85%.

EFC's ROE % is ranked better than
73.97% of 922 companies
in the REITs industry
Industry Median: 5 vs EFC: 8.93

Ellington Financial ROE % Historical Data

The historical data trend for Ellington Financial'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.

Ellington Financial ROE % Chart

Ellington Financial 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 8.32 2.92 12.26 -5.63 6.20

Ellington Financial Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 3.82 5.26 8.80 15.34 5.82

Competitive Comparison of Ellington Financial's ROE %

For the REIT - Mortgage subindustry, Ellington Financial'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.


Ellington Financial's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ellington Financial's ROE % distribution charts can be found below:

* The bar in red indicates where Ellington Financial's ROE % falls into.



Ellington Financial ROE % Calculation

Ellington Financial'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 )
=84.084/( (1195.967+1517.071)/ 2 )
=84.084/1356.519
=6.20 %

Ellington Financial's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=92.032/( (1552.785+1607.236)/ 2 )
=92.032/1580.0105
=5.82 %

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


Ellington Financial  (NYSE:EFC) 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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=92.032/1580.0105
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(92.032 / 243.788)*(243.788 / 15522.9715)*(15522.9715 / 1580.0105)
=Net Margin %*Asset Turnover*Equity Multiplier
=37.75 %*0.0157*9.8246
=ROA %*Equity Multiplier
=0.59 %*9.8246
=5.82 %

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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=92.032/1580.0105
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (92.032 / 64.216) * (64.216 / 243.788) * (243.788 / 15522.9715) * (15522.9715 / 1580.0105)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1.4332 * 26.34 % * 0.0157 * 9.8246
=5.82 %

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


Ellington Financial ROE % Related Terms

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


Ellington Financial Business Description

Traded in Other Exchanges
Address
53 Forest Avenue, Old Greenwich, CT, USA, 06870
Ellington Financial Inc is a specialty finance company. Its primary investment objective is to generate attractive, risk-adjusted total returns for its shareholders by making investments. The company has two reportable segments; The Investment Portfolio Segment is focused on investing in a diverse array of financial assets, including residential and commercial mortgage loans, residential mortgage-backed securities, non-mortgage- and mortgage-related derivatives, debt and equity investments in loan origination companies, and other strategic investments, and The Longbridge Segment is focused on the origination and servicing of reverse mortgage loans. it acquires reverse mortgage loans both through its origination activities and through secondary market purchases.
Executives
Michael W Vranos director, 10 percent owner, officer: Co-Chief Investment Officer 52 FOREST AVENUE, OLD GREENWICH CT 06870
Lisa Mumford officer: Chief Financial Officer 6 BEACHWOOD COURT, DIX HILLS NY 11746
Stephen J Dannhauser director 122 WEST 55TH STREET, NEW YORK NY 10019
Laurence Penn director, officer: CEO and President 52 FOREST AVENUE, OLD GREENWICH CT 06870
Ronald I Simon director 485 MADISON AVENUE, 14TH FLOOR, NEW YORK NY 10022
Chris Smernoff officer: Chief Accounting Officer 53 FOREST AVENUE, OLD GREENWICH CT 06870
John Herlihy officer: Chief Financial Officer 53 FOREST AVENUE, OLD GREENWICH CT 06870
Mark Tecotzky officer: Co-Chief Investment Officer 53 FOREST AVENUE, OLD GREENWICH CT 06870
Thomas F Robards director 666 THIRD AVENUE, 5TH FLOOR, NEW YORK NY 10017
Daniel R. Margolis officer: Secretary 53 FOREST AVENUE, OLD GREENWICH CT 06870
Edward Resendez director 52 FOREST AVENUE, OLD GREENWICH CT 06870
Vc Investments Llc 10 percent owner 53 FOREST AVENUE, 2ND FLOOR, OLD GREENWICH CT 06870
Emg Holdings, L.p. 10 percent owner 53 FOREST AVENUE, OLD GREENWICH CT 06870
Fbr Capital Markets Pt Inc 10 percent owner 1001 NINETEENTH STREET NORTH, ARLINGTON VA 22302