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Melcor Developments (TSX:MRD) ROE % : 3.41% (As of Dec. 2023)


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What is Melcor Developments ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Melcor Developments's annualized net income for the quarter that ended in Dec. 2023 was C$41.2 Mil. Melcor Developments's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was C$1,209.6 Mil. Therefore, Melcor Developments's annualized ROE % for the quarter that ended in Dec. 2023 was 3.41%.

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

TSX:MRD' s ROE % Range Over the Past 10 Years
Min: 1.06   Med: 5.2   Max: 12.06
Current: 5.29

During the past 13 years, Melcor Developments's highest ROE % was 12.06%. The lowest was 1.06%. And the median was 5.20%.

TSX:MRD's ROE % is ranked better than
61.4% of 1777 companies
in the Real Estate industry
Industry Median: 2.94 vs TSX:MRD: 5.29

Melcor Developments ROE % Historical Data

The historical data trend for Melcor Developments'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.

Melcor Developments ROE % Chart

Melcor Developments Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.51 1.06 5.13 7.79 5.27

Melcor Developments Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 12.73 0.73 7.33 9.65 3.41

Competitive Comparison of Melcor Developments's ROE %

For the Real Estate - Development subindustry, Melcor Developments'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.


Melcor Developments's ROE % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Melcor Developments's ROE % distribution charts can be found below:

* The bar in red indicates where Melcor Developments's ROE % falls into.



Melcor Developments ROE % Calculation

Melcor Developments'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 )
=62.98/( (1178.336+1209.578)/ 2 )
=62.98/1193.957
=5.27 %

Melcor Developments's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=41.244/( (1209.566+1209.578)/ 2 )
=41.244/1209.572
=3.41 %

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


Melcor Developments  (TSX:MRD) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=41.244/1209.572
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(41.244 / 500.536)*(500.536 / 2119.3635)*(2119.3635 / 1209.572)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.24 %*0.2362*1.7522
=ROA %*Equity Multiplier
=1.95 %*1.7522
=3.41 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=41.244/1209.572
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (41.244 / 49.012) * (49.012 / 175.228) * (175.228 / 500.536) * (500.536 / 2119.3635) * (2119.3635 / 1209.572)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8415 * 0.2797 * 35.01 % * 0.2362 * 1.7522
=3.41 %

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


Melcor Developments ROE % Related Terms

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Melcor Developments (TSX:MRD) Business Description

Traded in Other Exchanges
Address
10310 Jasper Avenue, Suite 900, Edmonton, AB, CAN, T5J 1Y8
Melcor Developments Ltd is a real estate development company. It develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centers, and golf courses. Its divisions include Community Development, which is engaged in acquiring raw land and planning residential communities and commercial developments; Property Development, which is engaged in project managing development, leasing, and construction of commercial properties; Investment Properties operates a portfolio of commercial and residential properties, focused on property improvements and capital appreciation; the REIT, which is engaged in acquiring and owning leasable office, retail, industrial and residential sites; Recreation Property and Corporate.

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