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RAIT Financial Trust (RAIT Financial Trust) ROE % : 5.19% (As of Jun. 2019)


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What is RAIT Financial Trust ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. RAIT Financial Trust's annualized net income for the quarter that ended in Jun. 2019 was $3.31 Mil. RAIT Financial Trust's average Total Stockholders Equity over the quarter that ended in Jun. 2019 was $63.70 Mil. Therefore, RAIT Financial Trust's annualized ROE % for the quarter that ended in Jun. 2019 was 5.19%.

The historical rank and industry rank for RAIT Financial Trust's ROE % or its related term are showing as below:

RASLQ.PFD' s ROE % Range Over the Past 10 Years
Min: -108.82   Med: -31.94   Max: 11.65
Current: -82.85

During the past 13 years, RAIT Financial Trust's highest ROE % was 11.65%. The lowest was -108.82%. And the median was -31.94%.

RASLQ.PFD's ROE % is not ranked
in the REITs industry.
Industry Median: 4.22 vs RASLQ.PFD: -82.85

RAIT Financial Trust ROE % Historical Data

The historical data trend for RAIT Financial Trust'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.

RAIT Financial Trust ROE % Chart

RAIT Financial Trust Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -59.38 10.28 6.52 -55.38 -100.92

RAIT Financial Trust Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 -179.06 -87.40 -92.56 -37.74 5.19

Competitive Comparison of RAIT Financial Trust's ROE %

For the REIT - Diversified subindustry, RAIT Financial Trust'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.


RAIT Financial Trust's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, RAIT Financial Trust's ROE % distribution charts can be found below:

* The bar in red indicates where RAIT Financial Trust's ROE % falls into.



RAIT Financial Trust ROE % Calculation

RAIT Financial Trust's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=-123.458/( (176.155+68.506)/ 2 )
=-123.458/122.3305
=-100.92 %

RAIT Financial Trust's annualized ROE % for the quarter that ended in Jun. 2019 is calculated as

ROE %=Net Income (Q: Jun. 2019 )/( (Total Stockholders Equity (Q: Mar. 2019 )+Total Stockholders Equity (Q: Jun. 2019 ))/ count )
=3.308/( (62.943+64.454)/ 2 )
=3.308/63.6985
=5.19 %

* 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 (Jun. 2019) net income data. ROE % is displayed in the 30-year financial page.


RAIT Financial Trust  (OTCPK:RASLQ.PFD) 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. 2019 )
=Net Income/Total Stockholders Equity
=3.308/63.6985
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3.308 / 12.264)*(12.264 / 628.18)*(628.18 / 63.6985)
=Net Margin %*Asset Turnover*Equity Multiplier
=26.97 %*0.0195*9.8618
=ROA %*Equity Multiplier
=0.53 %*9.8618
=5.19 %

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. 2019 )
=Net Income/Total Stockholders Equity
=3.308/63.6985
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (3.308 / 3.308) * (3.308 / 12.264) * (12.264 / 628.18) * (628.18 / 63.6985)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1 * 26.97 % * 0.0195 * 9.8618
=5.19 %

Note: The net income data used here is four times the quarterly (Jun. 2019) net income data. The Revenue data used here is four times the quarterly (Jun. 2019) 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.


RAIT Financial Trust ROE % Related Terms

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


RAIT Financial Trust (RAIT Financial Trust) Business Description

Traded in Other Exchanges
N/A
Address
100 North 18th Street, Two Logan Square, 23rd Floor, Philadelphia, PA, USA, 19103
RAIT Financial Trust is a United States-based real estate investment trust. Through its subsidiaries, the company invests in and manages a portfolio of commercial real estate (CRE) loans and properties. It operates in the business segment of real estate lending, owning and managing segment which focuses on lending, owning and managing commercial real estate assets throughout the United States. The form of the company's investments ranged from first mortgage loans to equity ownership of a commercial real estate property. It derives main revenue in the form of property income.

RAIT Financial Trust (RAIT Financial Trust) Headlines

From GuruFocus

RAIT Financial Trust (RAS) Chairman & Trustee Betsy Z Cohen buys 9,191 Shares

By GuruFocus Research GuruFocus Editor 12-04-2009

RAIT Financial Trust (RAS) CEO Scott Schaeffer buys 25,000 Shares

By GuruFocus Research GuruFocus Editor 11-24-2009

RAIT Financial Trust (RAS) COO & Secretary Raphael Licht sells 9,191 Shares

By GuruFocus Research GuruFocus Editor 12-04-2009

RAIT Financial Trust (RAS) CFO Jack Salmon buys 10,000 Shares

By GuruFocus Research GuruFocus Editor 12-01-2010