ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. GMX Resources's annualized net income for the quarter that ended in Sep. 2012 was €-180.40 Mil. GMX Resources's average Total Stockholders Equity over the quarter that ended in Sep. 2012 was €-83.44 Mil. Therefore, GMX Resources's annualized ROE % for the quarter that ended in Sep. 2012 was N/A%.
The historical rank and industry rank for GMX Resources's ROE % or its related term are showing as below:
FRA:HJ8A's ROE % is not ranked *
in the Oil & Gas industry.
Industry Median: 6.7 * Ranked among companies with meaningful ROE % only.
GMX Resources ROE % Historical Data
The historical data trend for GMX Resources'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.
For the Oil & Gas E&P subindustry, GMX Resources'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.
GMX Resources's ROE % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, GMX Resources's ROE % distribution charts can be found below:
* The bar in red indicates where GMX Resources's ROE % falls into.
GMX Resources ROE % Calculation
GMX Resources's annualized ROE % for the fiscal year that ended in Dec. 2012 is calculated as
* 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. 2012) net income data.
ROE % is displayed in the 30-year financial page.
* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.
GMX Resources (FRA:HJ8A) 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:
Note:
The net income data used here is four times the quarterly (Sep. 2012) net income data. The Revenue data used here is four times the quarterly (Sep. 2012) 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.
GMX Resources ROE % Related Terms
Thank you for viewing the detailed overview of GMX Resources's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
GMX Resources Inc. is an oil and gas company, which is engaged in the exploration, development and production of oil and natural gas from the Haynesville/Bossier Shale and Cotton Valley Sands in its core area, the Sabine Uplift of the Carthage, North Field of Harrison and Panola counties of East Texas. It also has properties located in Lea and Roosevelt counties, and New Mexico. During the first half of 2011, the company acquired all of the working interest and an average greater than 80% net revenue interest in approximately 35,000 undeveloped net acres of oil and gas leases located in Billings, Stark, McKenzie and Dunn Counties of North Dakota, and Richland, Sheridan and Wibaux Counties of Montana. The company holds Williston Basin leases in approximately 150 1,280-acre units and expects to be the operator in approximately 31 of those units, providing a minimum of 172 operated locations. At the same time it acquired all of the working interest and an 80% net revenue interest in approximately 40,000 undeveloped net acres of oil and gas leases located in Platte, Goshen and Laramie Counties of Wyoming. During 2011, it acquired approximately 35,000 net acres in the Bakken/Three Forks oil resource play, which provides it with over 400 potential horizontal locations. The company intends to continue its multi-year drilling program in 2012, expanding to a multi-rig program based on available liquidity and capital resources. It has three subsidiaries: Diamond Blue Drilling Co. (Diamond Blue), which previously owned three drilling rigs, Endeavor Pipeline Inc. (Endeavor Pipeline), which operates its water supply and salt water disposal systems in its East Texas area, and Endeavor Gathering, LLC (Endeavor Gathering), which owns the natural gas gathering system and related equipment operated by Endeavor Pipeline. Kinder Morgan Endeavor LLC (KME) owns 40% membership interest in Endeavor Gathering. During 2011 and the first two months of 2012, the company successfully drilled and completed five Bakken Petroleum System wells, all in North Dakota. The Wock 21-2-1H, Frank 31-4-1H and the Marsh 21-16 TFH wells are located in Stark County, while the Taboo 1-25-36H and the Evoniuk 21-2-1H are located in McKenzie and Billings County, North Dakota.
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