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RMCO (Royalty Management Holding) ROE % : -3.70% (As of Sep. 2024)


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What is Royalty Management Holding ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Royalty Management Holding's annualized net income for the quarter that ended in Sep. 2024 was $-0.45 Mil. Royalty Management Holding's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $12.09 Mil. Therefore, Royalty Management Holding's annualized ROE % for the quarter that ended in Sep. 2024 was -3.70%.

The historical rank and industry rank for Royalty Management Holding's ROE % or its related term are showing as below:

RMCO' s ROE % Range Over the Past 10 Years
Min: -55.86   Med: -33.29   Max: -4.4
Current: -4.4

During the past 3 years, Royalty Management Holding's highest ROE % was -4.40%. The lowest was -55.86%. And the median was -33.29%.

RMCO's ROE % is ranked worse than
82.29% of 1671 companies
in the Asset Management industry
Industry Median: 6.34 vs RMCO: -4.40

Royalty Management Holding ROE % Historical Data

The historical data trend for Royalty Management Holding'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.

Royalty Management Holding ROE % Chart

Royalty Management Holding Annual Data
Trend Dec21 Dec22 Dec23
ROE %
- -55.86 -10.72

Royalty Management Holding Quarterly Data
Dec21 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only - -26.04 5.81 -4.55 -3.70

Competitive Comparison of Royalty Management Holding's ROE %

For the Asset Management subindustry, Royalty Management Holding'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.


Royalty Management Holding's ROE % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Royalty Management Holding's ROE % distribution charts can be found below:

* The bar in red indicates where Royalty Management Holding's ROE % falls into.



Royalty Management Holding ROE % Calculation

Royalty Management Holding'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 )
=-1.114/( (9.672+11.114)/ 2 )
=-1.114/10.393
=-10.72 %

Royalty Management Holding's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=-0.448/( (10.636+13.549)/ 2 )
=-0.448/12.0925
=-3.70 %

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


Royalty Management Holding  (NAS:RMCO) 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. 2024 )
=Net Income/Total Stockholders Equity
=-0.448/12.0925
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-0.448 / 0.584)*(0.584 / 14.559)*(14.559 / 12.0925)
=Net Margin %*Asset Turnover*Equity Multiplier
=-76.71 %*0.0401*1.204
=ROA %*Equity Multiplier
=-3.08 %*1.204
=-3.70 %

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. 2024 )
=Net Income/Total Stockholders Equity
=-0.448/12.0925
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-0.448 / -0.448) * (-0.448 / -0.652) * (-0.652 / 0.584) * (0.584 / 14.559) * (14.559 / 12.0925)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.6871 * -111.64 % * 0.0401 * 1.204
=-3.70 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 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.


Royalty Management Holding ROE % Related Terms

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Royalty Management Holding Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
12115 Visionary Way, Unit 174, Fishers, IN, USA, 46038
Royalty Management Holding Corp formed to invest or purchase assets that have current or near-term income to provide the company with accretive cash flow from which it can reinvest in new assets or expand cash flow from existing assets. These assets typically are natural resources assets (including real estate and mining permits), patents, intellectual property, and emerging technologies.
Executives
Thomas M. Sauve director 8856 SOUTH STREET, FISHERS IN 46038
Aqr Arbitrage Llc 10 percent owner ONE GREENWICH PLAZA, GREENWICH CT 06830
Aqr Capital Management Llc 10 percent owner ONE GREENWICH PLAZA, GREENWICH CT 06830
Aqr Capital Management Holdings, Llc 10 percent owner ONE GREENWICH PLAZA, GREENWICH CT 06830
Mark C. Jensen director, officer: Chairman and CEO 8856 SOUTH STREET, FISHERS IN 46038
Kirk Patrick Taylor director, officer: President and CFO 8856 SOUTH STREET, FISHERS IN 46038

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