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GFI Group (FRA:GDH1) ROE % : 17.76% (As of Sep. 2015)


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What is GFI Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. GFI Group's annualized net income for the quarter that ended in Sep. 2015 was €39.9 Mil. GFI Group's average Total Stockholders Equity over the quarter that ended in Sep. 2015 was €224.5 Mil. Therefore, GFI Group's annualized ROE % for the quarter that ended in Sep. 2015 was 17.76%.

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

FRA:GDH1' s ROE % Range Over the Past 10 Years
Min: -30.8   Med: 4.32   Max: 32.99
Current: -6.33

During the past 13 years, GFI Group's highest ROE % was 32.99%. The lowest was -30.80%. And the median was 4.32%.

FRA:GDH1's ROE % is not ranked
in the Capital Markets industry.
Industry Median: 5.32 vs FRA:GDH1: -6.33

GFI Group ROE % Historical Data

The historical data trend for GFI Group'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.

GFI Group ROE % Chart

GFI Group 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 5.49 -0.68 -2.29 -4.70 -32.70

GFI Group Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 -10.33 -9.01 -31.45 -2.81 17.76

Competitive Comparison of GFI Group's ROE %

For the Capital Markets subindustry, GFI Group'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.


GFI Group's ROE % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, GFI Group's ROE % distribution charts can be found below:

* The bar in red indicates where GFI Group's ROE % falls into.



GFI Group ROE % Calculation

GFI Group'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 )
=-87.623/( (297.311+238.619)/ 2 )
=-87.623/267.965
=-32.70 %

GFI Group's annualized ROE % for the quarter that ended in Sep. 2015 is calculated as

ROE %=Net Income (Q: Sep. 2015 )/( (Total Stockholders Equity (Q: Jun. 2015 )+Total Stockholders Equity (Q: Sep. 2015 ))/ count )
=39.876/( (221.13+227.948)/ 2 )
=39.876/224.539
=17.76 %

* 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. 2015) net income data. ROE % is displayed in the 30-year financial page.


GFI Group  (FRA:GDH1) 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. 2015 )
=Net Income/Total Stockholders Equity
=39.876/224.539
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(39.876 / 603.244)*(603.244 / 1019.6105)*(1019.6105 / 224.539)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.61 %*0.5916*4.5409
=ROA %*Equity Multiplier
=3.91 %*4.5409
=17.76 %

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. 2015 )
=Net Income/Total Stockholders Equity
=39.876/224.539
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (39.876 / 40.584) * (40.584 / 61.76) * (61.76 / 603.244) * (603.244 / 1019.6105) * (1019.6105 / 224.539)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9826 * 0.6571 * 10.24 % * 0.5916 * 4.5409
=17.76 %

Note: The net income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 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.


GFI Group ROE % Related Terms

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


GFI Group (FRA:GDH1) Business Description

Traded in Other Exchanges
N/A
Address
GFI Group Inc was incorporated under the laws of the State of Delaware in 2001. The Company provides wholesale brokerage services, clearing services and electronic execution and trading support products for financial markets. It provide brokerage and trade execution services, clearing services, market data and trading platform and other software products to institutional customers in markets for a range of fixed income, financial, equity and commodity instruments. The Company provides execution services for its institutional wholesale customers by either matching their trading needs with counterparties having reciprocal interests or directing their orders to an exchange or other trading venue. The Company offers its customers a hybrid brokerage approach, combining a range of telephonic and electronic trade execution services, depending on the nature of the products and the specific needs of its customers. The Company operates in five business segments: Americas Brokerage; Europe, the Middle East and Africa Brokerage; Asia Brokerage, Clearing and Backed Trading and All Other. Its brokerage operations provide brokerage services in four product categories: fixed income, financial, equity and commodity. It's Clearing and Backed Trading segment encompasses its clearing, risk management, settlement and other back-office services, as well as the capital the Company provide to start-up trading groups, small hedge funds, market-makers and individual traders. The All Other segment captures revenues and costs that are not directly assignable to the brokerage or clearing and backed trading operating business segments, consisting of Company's corporate business activities and operations and commercial revenues from sales and licensing of trading systems software, analytic and market data. The Company offers products and services including Fixed Income Products, Financial Products, Equity Products, Commodity Products, Clearing and Settlement Services, and Software, Analytic and Market Data. The Company's competitors include ICAP Plc, Tullett Prebon Plc, CME, the Chicago Board Options Exchange, and Eurex and Euronext. The Company's businesses are subject to extensive regulation by government and self-regulatory organizations both in the United States and abroad.

GFI Group (FRA:GDH1) Headlines

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