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FTRPR.PFD (Frontier Communications) ROE % : Negative Equity% (As of Mar. 2021)


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What is Frontier Communications ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Frontier Communications's annualized net income for the quarter that ended in Mar. 2021 was $240.00 Mil. Frontier Communications's average Total Stockholders Equity over the quarter that ended in Mar. 2021 was $-4,865.00 Mil. Therefore, Frontier Communications's annualized ROE % for the quarter that ended in Mar. 2021 was Negative Equity%.

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

During the past 13 years, Frontier Communications's highest ROE % was 3.37%. The lowest was -59.47%. And the median was -2.09%.

FTRPR.PFD's ROE % is not ranked *
in the Telecommunication Services industry.
Industry Median: 7.535
* Ranked among companies with meaningful ROE % only.

Frontier Communications ROE % Historical Data

The historical data trend for Frontier 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.

Frontier Communications ROE % Chart

Frontier Communications Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -7.36 -53.11 -33.20 - -

Frontier Communications Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
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 - - Negative Equity - Negative Equity

Competitive Comparison of Frontier Communications's ROE %

For the Telecom Services subindustry, Frontier 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.


Frontier Communications's ROE % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Frontier Communications's ROE % distribution charts can be found below:

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


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Frontier Communications ROE % Calculation

Frontier Communications's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=-402/( (-4394+-4900)/ 2 )
=-402/-4647
=N/A %

Frontier Communications's annualized ROE % for the quarter that ended in Mar. 2021 is calculated as

ROE %=Net Income (Q: Mar. 2021 )/( (Total Stockholders Equity (Q: Dec. 2020 )+Total Stockholders Equity (Q: Mar. 2021 ))/ count )
=240/( (-4900+-4830)/ 2 )
=240/-4865
=Negative Equity %

* 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 (Mar. 2021) 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.


Frontier Communications  (NAS:FTRPR.PFD) 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: Mar. 2021 )
=Net Income/Total Stockholders Equity
=240/-4865
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(240 / 6704)*(6704 / 16877.5)*(16877.5 / -4865)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.58 %*0.3972*N/A
=ROA %*Equity Multiplier
=1.42 %*N/A
=Negative Equity %

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: Mar. 2021 )
=Net Income/Total Stockholders Equity
=240/-4865
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (240 / 588) * (588 / 1044) * (1044 / 6704) * (6704 / 16877.5) * (16877.5 / -4865)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.4082 * 0.5632 * 15.57 % * 0.3972 * N/A
=Negative Equity %

Note: The net income data used here is four times the quarterly (Mar. 2021) net income data. The Revenue data used here is four times the quarterly (Mar. 2021) 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.


Frontier Communications ROE % Related Terms

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


Frontier Communications Business Description

Traded in Other Exchanges
N/A
Address
401 Merritt 7, Norwalk, CT, USA, 06851
Frontier Communications Corp is a provider of communications services for consumer and commercial customers in the United States. The portfolio of its services includes Data and Internet services, Video services, Voice services including both the regulated and unregulated voices, Access services, and Advanced Hardware and Network Solutions.
Executives
Sheldon Bruha officer: Chief Financial Officer 401 MERRITT 7, NORWALK CT 06851
John Maduri officer: EVP, Chief Customer Officer 401 MERRITT 7, NORWALK CT 06851
Steve Gable officer: EVP, Chief Technology Officer FRONTIER COMMUNICATIONS, 401 MERRITT 7, NORWALK CT 06851
Mark D Nielsen officer: EVP and Chief Legal Officer FRONTIER COMMUNICATIONS, 401 MERRITT 7, NORWALK CT 06851
Donald Daniels officer: SVP & Chief Accounting Officer FRONTIER COMMUNICATIONS, 401 MERRITT 7, NORWALK CT 06851
Kenneth Arndt officer: EVP, Chief Operations Officer 401 MERRITT 7, NORWALK CT 06851
Elisa Bannon-jones officer: EVP, Chief HR Officer 401 MERRITT 7, NORWALK CT 06851
Bernard L Han director, officer: President and CEO DISH NETWORK CORPORATION, 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Mohsin Y Meghji director C/O LOUGHLIN MEGHJI + COMPANY, NEW YORK NY 10016
Paul Keglevic director STELLUS CAPITAL, 10000 MEMORIAL DRIVE STE 500, HOUSTON TX 77024
Kevin L Beebe director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Reeve Pamela D A director C/O AMERICAN TOWER CORPORATION, 116 HUNTINGTON AVE, BOSTON MA 02116
Diana Sue Ferguson director C/O SARA LEE CORP, 70 W MADISO ST, CHICAGO IL 60602
Virginia P Ruesterholz director 140 WEST STREET, NEW YORK NY 10007
Mark S Shapiro director C/O RED ZONE LLC, 21300 REDSKIN PARK DRIVE, ASHBURN VA 20147

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