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Controladora NemakB De CV (MEX:NMKA) ROE % : -6.33% (As of Sep. 2021)


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What is Controladora NemakB De CV ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Controladora NemakB De CV's annualized net income for the quarter that ended in Sep. 2021 was MXN-2,301 Mil. Controladora NemakB De CV's average Total Stockholders Equity over the quarter that ended in Sep. 2021 was MXN36,354 Mil. Therefore, Controladora NemakB De CV's annualized ROE % for the quarter that ended in Sep. 2021 was -6.33%.

The historical rank and industry rank for Controladora NemakB De CV's ROE % or its related term are showing as below:

MEX:NMKA's ROE % is not ranked *
in the Vehicles & Parts industry.
Industry Median: 7.49
* Ranked among companies with meaningful ROE % only.

Controladora NemakB De CV ROE % Historical Data

The historical data trend for Controladora NemakB De CV'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.

Controladora NemakB De CV ROE % Chart

Controladora NemakB De CV Annual Data
Trend Dec17 Dec18 Dec19
ROE %
9.61 9.30 5.36

Controladora NemakB De CV Quarterly Data
Dec17 Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Mar21 Jun21 Sep21
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only - 20.43 8.76 9.69 -6.33

Competitive Comparison of Controladora NemakB De CV's ROE %

For the Auto Parts subindustry, Controladora NemakB De CV'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.


Controladora NemakB De CV's ROE % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Controladora NemakB De CV's ROE % distribution charts can be found below:

* The bar in red indicates where Controladora NemakB De CV's ROE % falls into.



Controladora NemakB De CV ROE % Calculation

Controladora NemakB De CV's annualized ROE % for the fiscal year that ended in Dec. 2019 is calculated as

ROE %=Net Income (A: Dec. 2019 )/( (Total Stockholders Equity (A: Dec. 2018 )+Total Stockholders Equity (A: Dec. 2019 ))/ count )
=1876/( (36104+33944)/ 2 )
=1876/35024
=5.36 %

Controladora NemakB De CV's annualized ROE % for the quarter that ended in Sep. 2021 is calculated as

ROE %=Net Income (Q: Sep. 2021 )/( (Total Stockholders Equity (Q: Jun. 2021 )+Total Stockholders Equity (Q: Sep. 2021 ))/ count )
=-2300.984/( (36404.96+36304.031)/ 2 )
=-2300.984/36354.4955
=-6.33 %

* 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. 2021) net income data. ROE % is displayed in the 30-year financial page.


Controladora NemakB De CV  (MEX:NMKA) 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. 2021 )
=Net Income/Total Stockholders Equity
=-2300.984/36354.4955
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-2300.984 / 68866.008)*(68866.008 / 103793.1985)*(103793.1985 / 36354.4955)
=Net Margin %*Asset Turnover*Equity Multiplier
=-3.34 %*0.6635*2.855
=ROA %*Equity Multiplier
=-2.22 %*2.855
=-6.33 %

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. 2021 )
=Net Income/Total Stockholders Equity
=-2300.984/36354.4955
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-2300.984 / -3428.328) * (-3428.328 / 2277.876) * (2277.876 / 68866.008) * (68866.008 / 103793.1985) * (103793.1985 / 36354.4955)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6712 * -1.5051 * 3.31 % * 0.6635 * 2.855
=-6.33 %

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


Controladora NemakB De CV ROE % Related Terms

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Controladora NemakB De CV (MEX:NMKA) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Librameinto Arco Vial Km 3.8, Garcia, NL, MEX, 66000
Controladora Nemak SAB De CV manufactures and markets lightweighting solutions for the Automotive industry. The company specializes in the development of aluminum components for powertrain and body structure applications. The product portfolio includes cylinder heads, engine blocks, transmission cases, shock towers, subframes, battery housings, and other products.

Controladora NemakB De CV (MEX:NMKA) Headlines

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