ILIM (IL2M International) ROE %: Negative Equity% (As of Feb. 2015)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is IL2M International ROE %?

IL2M International ILIM -99.00% ROE % is Negative Equity% as of Feb. 2015.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. IL2M International's annualized net income for the quarter that ended in Feb. 2015 was $0.48 Mil. IL2M International's average Total Stockholders Equity over the quarter that ended in Feb. 2015 was $-3.04 Mil. Therefore, IL2M International's annualized ROE % for the quarter that ended in Feb. 2015 was Negative Equity%.

The historical rank and industry rank for IL2M International's ROE % or its related term are showing as below:

ILIM's ROE % is not ranked *
in the Interactive Media industry.
Industry Median: 2.39
* Ranked among companies with meaningful ROE % only.

IL2M International  (OTCPK:ILIM) 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: Feb. 2015 )
=Net Income/Total Stockholders Equity
=0.48/-3.0365
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.48 / 0)*(0 / 0.061)*(0.061 / -3.0365)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*N/A
=ROA %*Equity Multiplier
=N/A %*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: Feb. 2015 )
=Net Income/Total Stockholders Equity
=0.48/-3.0365
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.48 / 0.48) * (0.48 / -2.072) * (-2.072 / 0) * (0 / 0.061) * (0.061 / -3.0365)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * -0.2317 * N/A % * 0 * N/A
=Negative Equity %

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


IL2M International ROE % Related Terms


IL2M International ROE % Historical Data

* Premium members only.

The historical data trend for IL2M International'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.

IL2M International ROE % Chart

IL2M International Annual Data
Trend May11 May12 May13
ROE %
-26.14 -155.68 0.00

IL2M International Quarterly Data
Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15
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 0.00 0.00 Negative Equity 0.00 Negative Equity

ILIM vs LKST, IDDR, SNNC: ROE % Comparison

For the Internet Content & Information subindustry, IL2M International'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.


IL2M International ROE % vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, IL2M International's ROE % distribution charts can be found below:

* The bar in red indicates where IL2M International's ROE % falls into.



IL2M International ROE % Calculation

IL2M International's annualized ROE % for the fiscal year that ended in May. 2013 is calculated as

ROE %=Net Income (A: May. 2013 )/( (Total Stockholders Equity (A: May. 2012 )+Total Stockholders Equity (A: May. 2013 ))/ count )
=-0.113/( (0.023+-0.035)/ 2 )
=-0.113/-0.006
=N/A %

IL2M International's annualized ROE % for the quarter that ended in Feb. 2015 is calculated as

ROE %=Net Income (Q: Feb. 2015 )/( (Total Stockholders Equity (Q: Nov. 2014 )+Total Stockholders Equity (Q: Feb. 2015 ))/ count )
=0.48/( (-3.564+-2.509)/ 2 )
=0.48/-3.0365
=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 (Feb. 2015) 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of Negative Equity% mean?
IL2M International (ILIM) has a ROE % of Negative Equity% as of Feb. 2015. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on IL2M International and its competitors.
Is IL2M International's ROE % too high?
IL2M International's current ROE % is Negative Equity%.
How does IL2M International's ROE % compare to LKST and IDDR?
IL2M International's ROE % of Negative Equity% can be compared against companies in the Interactive Media industry. The industry median ROE % is 2.39. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Interactive Media company?
The median ROE % among Interactive Media companies is 2.39, based on 530 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on IL2M International and its competitors. For the Interactive Media industry, the median ROE % is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IL2M International's current ROE % is Negative Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IL2M International stock overvalued right now?
IL2M International (ILIM) has a current ROE % of Negative Equity%. The current ROE % is Negative Equity%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For IL2M International (ILIM), the current ROE % is Negative Equity% as of Feb. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

IL2M International Business Description

Address 3500 West Olive Avenue, Suite 810, Burbank, CA, USA, 91505
IL2M International Corp is a developer of wired and wireless telemetry which is the monitoring, collection and transmission of data by wire or radio from remote sources and remote control systems. ILIM seeks to create its BidAi platform that would usher in a new category of human interaction known as metaverse. Company's BidAi Metaverse platform would consist of the BidAi Client, the BidAi Studio, and the BidAi Cloud. BidAi Client would be the application that allows users to explore 3D digital worlds. BidAi Studio would be the toolset that allows developers and creators to build, publish, and operate 3D experiences and other content accessed with the BidAi Client. BidAi Cloud includes the services and infrastructure that will power gaming platform platform.