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GCMG (GCM Grosvenor) ROE % : Negative Equity% (As of Sep. 2024)


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What is GCM Grosvenor ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. GCM Grosvenor's annualized net income for the quarter that ended in Sep. 2024 was $16.6 Mil. GCM Grosvenor's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $-30.2 Mil. Therefore, GCM Grosvenor's annualized ROE % for the quarter that ended in Sep. 2024 was Negative Equity%.

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

GCMG' s ROE % Range Over the Past 10 Years
Min: Negative Equity   Med: Negative Equity   Max: Negative Equity
Current: Negative Equity

During the past 6 years, GCM Grosvenor's highest ROE % was Negative Equity%. The lowest was Negative Equity%. And the median was Negative Equity%.

GCMG's ROE % is ranked better than
99.94% of 1671 companies
in the Asset Management industry
Industry Median: 6.47 vs GCMG: Negative Equity

GCM Grosvenor ROE % Historical Data

The historical data trend for GCM Grosvenor'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.

GCM Grosvenor ROE % Chart

GCM Grosvenor Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial - Negative Equity Negative Equity Negative Equity Negative Equity

GCM Grosvenor 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 Negative Equity Negative Equity Negative Equity Negative Equity Negative Equity

Competitive Comparison of GCM Grosvenor's ROE %

For the Asset Management subindustry, GCM Grosvenor'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.


GCM Grosvenor's ROE % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, GCM Grosvenor's ROE % distribution charts can be found below:

* The bar in red indicates where GCM Grosvenor's ROE % falls into.



GCM Grosvenor ROE % Calculation

GCM Grosvenor'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 )
=12.774/( (-19.82+-27.634)/ 2 )
=12.774/-23.727
=Negative Equity %

GCM Grosvenor'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 )
=16.624/( (-28.499+-31.879)/ 2 )
=16.624/-30.189
=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 (Sep. 2024) 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.


GCM Grosvenor  (NAS:GCMG) 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
=16.624/-30.189
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(16.624 / 498.072)*(498.072 / 559.4805)*(559.4805 / -30.189)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.34 %*0.8902*N/A
=ROA %*Equity Multiplier
=2.97 %*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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=16.624/-30.189
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (16.624 / 61.284) * (61.284 / 110.696) * (110.696 / 498.072) * (498.072 / 559.4805) * (559.4805 / -30.189)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.2713 * 0.5536 * 22.22 % * 0.8902 * N/A
=Negative Equity %

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.


GCM Grosvenor ROE % Related Terms

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


GCM Grosvenor Business Description

Traded in Other Exchanges
N/A
Address
900 North Michigan Avenue, Suite 1100, Chicago, IL, USA, 60611
GCM Grosvenor Inc is a world-wide alternative asset management firm. It invests on behalf of clients who seek allocations to alternative investments, such as private equity, infrastructure, real estate, credit, ESG and absolute return strategies. The company's offerings include multi-manager portfolios as well as portfolios of direct investments and co-investments.
Executives
Kathleen Patricia Sullivan officer: M D and Head of Accounting 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Pamela L Bentley officer: Chief Financial Officer C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004
Sandra Hurse officer: Chief HR Officer C/O GROSVENOR CAPITAL MANAGEMENT, 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Adage Capital Partners Gp, L.l.c. 10 percent owner 200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Gcm Progress Llc 10 percent owner C/O GCM GROSVENOR, 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Gcm Progress Subsidiary Llc 10 percent owner C/O GCM GROSVENOR, 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Cf Finance Holdings Llc 10 percent owner 110 EAST 59TH STREET, NEW YORK NY 10022
Stephen Malkin director C/O GROSVENOR CAPITAL MANAGEMENT, 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Francesca Cornelli director C/O GROSVENOR CAPITAL MANAGEMENT, 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Angela Blanton director C/O GROSVENOR CAPITAL MANAGEMENT, 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Gcm V, Llc 10 percent owner C/O GROSVENOR CAPITAL MANAGEMENT, 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Grosvenor Holdings, L.l.c. 10 percent owner 900 NORTH MICHIGAN AVE, SUITE 1100, CHICAGO IL 60611
Jonathan Reisin Levin director, officer: President 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Frederick Pollock officer: Chief Investment Officer 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Michael Jay Sacks director, 10 percent owner, officer: Chief Executive Officer 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611