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Rainbow Rare Earths (LSE:RBW) ROE % : -31.90% (As of Jun. 2024)


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What is Rainbow Rare Earths ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rainbow Rare Earths's annualized net income for the quarter that ended in Jun. 2024 was £-4.30 Mil. Rainbow Rare Earths's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was £13.47 Mil. Therefore, Rainbow Rare Earths's annualized ROE % for the quarter that ended in Jun. 2024 was -31.90%.

The historical rank and industry rank for Rainbow Rare Earths's ROE % or its related term are showing as below:

LSE:RBW' s ROE % Range Over the Past 10 Years
Min: -162.72   Med: -31.77   Max: -25.84
Current: -25.84

During the past 11 years, Rainbow Rare Earths's highest ROE % was -25.84%. The lowest was -162.72%. And the median was -31.77%.

LSE:RBW's ROE % is ranked worse than
58.06% of 2418 companies
in the Metals & Mining industry
Industry Median: -16.995 vs LSE:RBW: -25.84

Rainbow Rare Earths ROE % Historical Data

The historical data trend for Rainbow Rare Earths'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.

Rainbow Rare Earths ROE % Chart

Rainbow Rare Earths Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -33.62 -25.88 -29.91 -77.51 -27.72

Rainbow Rare Earths Semi-Annual Data
Jun14 Jun15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -22.21 -18.44 -141.09 -17.73 -31.90

Competitive Comparison of Rainbow Rare Earths's ROE %

For the Other Industrial Metals & Mining subindustry, Rainbow Rare Earths'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.


Rainbow Rare Earths's ROE % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Rainbow Rare Earths's ROE % distribution charts can be found below:

* The bar in red indicates where Rainbow Rare Earths's ROE % falls into.



Rainbow Rare Earths ROE % Calculation

Rainbow Rare Earths's annualized ROE % for the fiscal year that ended in Jun. 2024 is calculated as

ROE %=Net Income (A: Jun. 2024 )/( (Total Stockholders Equity (A: Jun. 2023 )+Total Stockholders Equity (A: Jun. 2024 ))/ count )
=-3.282/( (11.225+12.458)/ 2 )
=-3.282/11.8415
=-27.72 %

Rainbow Rare Earths's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=-4.296/( (14.472+12.458)/ 2 )
=-4.296/13.465
=-31.90 %

* 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 (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


Rainbow Rare Earths  (LSE:RBW) 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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=-4.296/13.465
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.296 / 0)*(0 / 13.8105)*(13.8105 / 13.465)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*1.0257
=ROA %*Equity Multiplier
=N/A %*1.0257
=-31.90 %

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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=-4.296/13.465
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-4.296 / -4.418) * (-4.418 / -3.31) * (-3.31 / 0) * (0 / 13.8105) * (13.8105 / 13.465)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9724 * 1.3347 * N/A % * 0 * 1.0257
=-31.90 %

Note: The net income data used here is two times the semi-annual (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.


Rainbow Rare Earths ROE % Related Terms

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Rainbow Rare Earths Business Description

Traded in Other Exchanges
Address
St Julian's Avenue, Connaught House, Saint Peter Port, GGY, GY1 3EL
Rainbow Rare Earths Ltd aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. It is doing this successfully via the identification and development of secondary rare earth deposits that can be brought into production quicker and at a lower cost than traditional hard rock mining projects, with a focus on the magnet rare earth elements neodymium & praseodymium, dysprosium & terbium. It is focused on the development of the Phalaborwa Project and the earlier stage Uberaba Project. Both projects entail the recovery of rare earths from phosphogypsum stacks that occur as the by-product of phosphoric acid production, with the original source rock for both deposits being a hardrock carbonatite.

Rainbow Rare Earths Headlines

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