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MTL Cannabis (STU:J4E) ROE % : 111.98% (As of Sep. 2023)


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What is MTL Cannabis ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MTL Cannabis's annualized net income for the quarter that ended in Sep. 2023 was €5.52 Mil. MTL Cannabis's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was €4.93 Mil. Therefore, MTL Cannabis's annualized ROE % for the quarter that ended in Sep. 2023 was 111.98%.

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

STU:J4E' s ROE % Range Over the Past 10 Years
Min: -83.6   Med: 46.07   Max: 83.02
Current: 29.63

During the past 3 years, MTL Cannabis's highest ROE % was 83.02%. The lowest was -83.60%. And the median was 46.07%.

STU:J4E's ROE % is ranked better than
67.35% of 49 companies
in the Tobacco Products industry
Industry Median: 11.17 vs STU:J4E: 29.63

MTL Cannabis ROE % Historical Data

The historical data trend for MTL Cannabis'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.

MTL Cannabis ROE % Chart

MTL Cannabis Annual Data
Trend Mar21 Mar22 Mar23
ROE %
46.09 84.69 -80.72

MTL Cannabis Quarterly Data
Mar21 Mar22 Jun22 Sep22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial - - -52.18 111.98 -7.63

Competitive Comparison of MTL Cannabis's ROE %

For the Tobacco subindustry, MTL Cannabis'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.


MTL Cannabis's ROE % Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, MTL Cannabis's ROE % distribution charts can be found below:

* The bar in red indicates where MTL Cannabis's ROE % falls into.



MTL Cannabis ROE % Calculation

MTL Cannabis's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=-1.511/( (2.692+1.052)/ 2 )
=-1.511/1.872
=-80.72 %

MTL Cannabis's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=5.52/( (0.941+8.918)/ 2 )
=5.52/4.9295
=111.98 %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.


MTL Cannabis  (STU:J4E) 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. 2023 )
=Net Income/Total Stockholders Equity
=5.52/4.9295
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(5.52 / 52.644)*(52.644 / 37.8935)*(37.8935 / 4.9295)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.49 %*1.3893*7.6871
=ROA %*Equity Multiplier
=14.57 %*7.6871
=111.98 %

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. 2023 )
=Net Income/Total Stockholders Equity
=5.52/4.9295
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (5.52 / 5.86) * (5.86 / 2.036) * (2.036 / 52.644) * (52.644 / 37.8935) * (37.8935 / 4.9295)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.942 * 2.8782 * 3.87 % * 1.3893 * 7.6871
=111.98 %

Note: The net income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) 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.


MTL Cannabis ROE % Related Terms

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MTL Cannabis (STU:J4E) Business Description

Traded in Other Exchanges
Address
1773 Bayly Street, Pickering, ON, CAN, L1W 2Y7
MTL Cannabis Corp is a flower-first company built for the modern street, MTL Cannabis uses proprietary hydroponic growing methodologies supported by handcrafted techniques to produce products that are truly crafted for the masses. The company focuses on craft quality cannabis products, including lines of dried flower, pre-rolls and hash marketed under the MTL Cannabis, Low Key by MTL and R'belle brands for the Canadian market through nine distribution arrangements with various provincial cannabis distributors. It has also developed a number of export channels for bulk and unbranded GACP quality cannabis.

MTL Cannabis (STU:J4E) Headlines

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