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TKO Group Holdings (TKO Group Holdings) ROE % : -10.20% (As of Mar. 2024)


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What is TKO Group Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. TKO Group Holdings's annualized net income for the quarter that ended in Mar. 2024 was $-415 Mil. TKO Group Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $4,072 Mil. Therefore, TKO Group Holdings's annualized ROE % for the quarter that ended in Mar. 2024 was -10.20%.

The historical rank and industry rank for TKO Group Holdings's ROE % or its related term are showing as below:

TKO' s ROE % Range Over the Past 10 Years
Min: 0.62   Med: 21.81   Max: 42.61
Current: 0.62

During the past 4 years, TKO Group Holdings's highest ROE % was 42.61%. The lowest was 0.62%. And the median was 21.81%.

TKO's ROE % is ranked worse than
57.45% of 987 companies
in the Media - Diversified industry
Industry Median: 2.49 vs TKO: 0.62

TKO Group Holdings ROE % Historical Data

The historical data trend for TKO Group Holdings'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.

TKO Group Holdings ROE % Chart

TKO Group Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROE %
- 21.81 42.61 8.90

TKO Group Holdings Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 62.01 56.73 7.49 -0.52 -10.20

Competitive Comparison of TKO Group Holdings's ROE %

For the Entertainment subindustry, TKO Group Holdings'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.


TKO Group Holdings's ROE % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, TKO Group Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where TKO Group Holdings's ROE % falls into.



TKO Group Holdings ROE % Calculation

TKO Group Holdings'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 )
=208.176/( (568.916+4108.98)/ 2 )
=208.176/2338.948
=8.90 %

TKO Group Holdings's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=-415.36/( (4108.98+4034.777)/ 2 )
=-415.36/4071.8785
=-10.20 %

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


TKO Group Holdings  (NYSE:TKO) 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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-415.36/4071.8785
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-415.36 / 2518.844)*(2518.844 / 12706.5025)*(12706.5025 / 4071.8785)
=Net Margin %*Asset Turnover*Equity Multiplier
=-16.49 %*0.1982*3.1206
=ROA %*Equity Multiplier
=-3.27 %*3.1206
=-10.20 %

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: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-415.36/4071.8785
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-415.36 / -1100.328) * (-1100.328 / -841.38) * (-841.38 / 2518.844) * (2518.844 / 12706.5025) * (12706.5025 / 4071.8785)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.3775 * 1.3078 * -33.4 % * 0.1982 * 3.1206
=-10.20 %

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


TKO Group Holdings ROE % Related Terms

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


TKO Group Holdings (TKO Group Holdings) Business Description

Traded in Other Exchanges
N/A
Address
200 fifth Avenue, 7th Floor, New York, NY, USA, 10010
TKO Group Holdings Inc is a premium sports and entertainment company that comprises UFC, the world's premier mixed martial arts organization, and WWE, an integrated media organization and the recognized global leader in sports entertainment.
Executives
Mark S Shapiro director, officer: See Remarks C/O RED ZONE LLC, 21300 REDSKIN PARK DRIVE, ASHBURN VA 20147
Ariel Emanuel director, 10 percent owner, officer: Chief Executive Officer C/O SOURCE INTERLINK COMPANIES, INC., 27500 RIVERVIEW CENTER BLVD, SUITE 400, BONITA SPRINGS FL 34134
Jonathan Kraft director C/O ENDEAVOR GROUP HOLDINGS, INC., 9601 WILSHIRE BOULEVARD, 3RD FLOOR, BEVERLY HILLS CA 90210
Carrie Wheeler director 500 VOLVO PARKWAY, CHESAPEAKE VA 23320
Steven R Koonin director 625 WESTPORT PARKWAY, GRAPEVINE TX 76051
Vincent K Mcmahon director, 10 percent owner C/O WORLD WRESTLING ENTERTAINMENT INC, 1241 EAST MAIN STREET, STAMFORD CT 06902
Sonya E Medina director P.O. BOX 99900, LOUISVILLE KY 40269
Shane Kapral officer: Chief Accounting Officer C/O ENDEAVOR GROUP HOLDINGS, INC., 9601 WILSHIRE BOULEVARD, 3RD FLOOR, BEVERLY HILLS CA 90210
Endeavor Group Holdings, Inc. 10 percent owner 9601 WILSHIRE BOULEVARD, 3RD FLOOR, BEVERLY HILLS CA 90210
Silver Lake West Voteco, L.l.c. 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake West Holdco, L.p. 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake West Holdco Ii, L.p. 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Nick Khan director 1241 EAST MAIN STREET, STAMFORD CT 06902
Patrick Whitesell 10 percent owner 11601 WILSHIRE BOULEVARD, SUITE 1600, LOS ANGELES CA 90025
Bynoe Peter C B director 203 NORTH LASALLE STREET, SUITE 1900, CHICAGO IL 60601