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Cathay Media And Education Group (HKSE:01981) ROE % : -6.78% (As of Dec. 2023)


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What is Cathay Media And Education Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cathay Media And Education Group's annualized net income for the quarter that ended in Dec. 2023 was HK$-168.9 Mil. Cathay Media And Education Group's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was HK$2,490.5 Mil. Therefore, Cathay Media And Education Group's annualized ROE % for the quarter that ended in Dec. 2023 was -6.78%.

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

HKSE:01981' s ROE % Range Over the Past 10 Years
Min: -8.34   Med: 11.38   Max: 16.2
Current: -8.34

During the past 7 years, Cathay Media And Education Group's highest ROE % was 16.20%. The lowest was -8.34%. And the median was 11.38%.

HKSE:01981's ROE % is ranked worse than
81.25% of 256 companies
in the Education industry
Industry Median: 5.725 vs HKSE:01981: -8.34

Cathay Media And Education Group ROE % Historical Data

The historical data trend for Cathay Media And Education 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.

Cathay Media And Education Group ROE % Chart

Cathay Media And Education Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial 14.08 16.20 2.22 3.68 -8.31

Cathay Media And Education Group Semi-Annual Data
Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.95 11.96 -4.68 -9.82 -6.78

Competitive Comparison of Cathay Media And Education Group's ROE %

For the Education & Training Services subindustry, Cathay Media And Education 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.


Cathay Media And Education Group's ROE % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Cathay Media And Education Group's ROE % distribution charts can be found below:

* The bar in red indicates where Cathay Media And Education Group's ROE % falls into.



Cathay Media And Education Group ROE % Calculation

Cathay Media And Education Group'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 )
=-214.671/( (2744.21+2423.532)/ 2 )
=-214.671/2583.871
=-8.31 %

Cathay Media And Education Group's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-168.902/( (2557.399+2423.532)/ 2 )
=-168.902/2490.4655
=-6.78 %

* 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 two times the semi-annual (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Cathay Media And Education Group  (HKSE:01981) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-168.902/2490.4655
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-168.902 / 836.198)*(836.198 / 3198.278)*(3198.278 / 2490.4655)
=Net Margin %*Asset Turnover*Equity Multiplier
=-20.2 %*0.2615*1.2842
=ROA %*Equity Multiplier
=-5.28 %*1.2842
=-6.78 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-168.902/2490.4655
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-168.902 / -155.166) * (-155.166 / 115.576) * (115.576 / 836.198) * (836.198 / 3198.278) * (3198.278 / 2490.4655)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0885 * -1.3425 * 13.82 % * 0.2615 * 1.2842
=-6.78 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 2023) 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.


Cathay Media And Education Group ROE % Related Terms

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Cathay Media And Education Group (HKSE:01981) Business Description

Traded in Other Exchanges
N/A
Address
No. 93 Jianguo Road, 22nd Floor, Block 12, Wanda Plaza, Chaoyang District, Beijing, CHN
Cathay Media And Education Group Inc is a media group, engaged in TV/film production business and higher education business focused on media and arts. The company produces films, TV shows, Web films, and TV series. Its segments include TV/Film production and investment, and Education and training. The majority of the revenue is derived from the higher education segment.
Executives
Pu Shulin 2307 Founder of a discretionary trust who can infl
Luo Jacqueline 2202 Interest of your spouse
Cathay Media Holding Inc. 2101 Beneficial owner
Media One International (ptc) Limited 2301 Trustee
Winning Global Ventures Limited 2201 Interest of corporation controlled by you
Areo Holdings Limited 2201 Interest of corporation controlled by you
Highland Pines Limited 2101 Beneficial owner
Lam Lai Ming 2201 Interest of corporation controlled by you
Li Gabriel 2201 Interest of corporation controlled by you

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