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AFC Gamma (AFC Gamma) ROE % : -11.16% (As of Dec. 2023)


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What is AFC Gamma ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. AFC Gamma's annualized net income for the quarter that ended in Dec. 2023 was $-36.75 Mil. AFC Gamma's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $329.41 Mil. Therefore, AFC Gamma's annualized ROE % for the quarter that ended in Dec. 2023 was -11.16%.

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

AFCG' s ROE % Range Over the Past 10 Years
Min: 6.25   Med: 11.52   Max: 11.74
Current: 6.25

During the past 4 years, AFC Gamma's highest ROE % was 11.74%. The lowest was 6.25%. And the median was 11.52%.

AFCG's ROE % is ranked better than
62.87% of 800 companies
in the REITs industry
Industry Median: 4.21 vs AFCG: 6.25

AFC Gamma ROE % Historical Data

The historical data trend for AFC Gamma'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.

AFC Gamma ROE % Chart

AFC Gamma Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROE %
- 11.52 11.74 6.36

AFC Gamma Quarterly Data
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 3.42 11.85 14.31 9.40 -11.16

Competitive Comparison of AFC Gamma's ROE %

For the REIT - Specialty subindustry, AFC Gamma'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.


AFC Gamma's ROE % Distribution in the REITs Industry

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

* The bar in red indicates where AFC Gamma's ROE % falls into.



AFC Gamma ROE % Calculation

AFC Gamma'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 )
=20.952/( (339.059+320.052)/ 2 )
=20.952/329.5555
=6.36 %

AFC Gamma'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 )
=-36.752/( (338.772+320.052)/ 2 )
=-36.752/329.412
=-11.16 %

* 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.


AFC Gamma  (NAS:AFCG) 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
=-36.752/329.412
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-36.752 / 34.044)*(34.044 / 455.8435)*(455.8435 / 329.412)
=Net Margin %*Asset Turnover*Equity Multiplier
=-107.95 %*0.0747*1.3838
=ROA %*Equity Multiplier
=-8.06 %*1.3838
=-11.16 %

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
=-36.752/329.412
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-36.752 / -34.14) * (-34.14 / 34.044) * (34.044 / 455.8435) * (455.8435 / 329.412)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1.0765 * -100.28 % * 0.0747 * 1.3838
=-11.16 %

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.


AFC Gamma ROE % Related Terms

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


AFC Gamma (AFC Gamma) Business Description

Traded in Other Exchanges
Address
525 Okeechobee Boulevard, Suite 1650, West Palm Beach, FL, USA, 33401
AFC Gamma Inc is a commercial real estate finance company. The company originates, structures, underwrites and manages senior secured loans and other types of loans for established cannabis industry operators in states that have legalized medicinal and/or adult-use cannabis.
Executives
James C. Fagan director 123 HARBOR DRIVE, UNIT 211, STAMFORD CT 06902
Leonard M Tannenbaum director, 10 percent owner, officer: Chief Executive Officer 525 OKEECHOBEE BLVD., SUITE 1770, WEST PALM BEACH FL 33401
Robyn Tannenbaum officer: Managing Director 525 OKEECHOBEE BLVD., SUITE 1770, WEST PALM BEACH FL 33401
Brandon Hetzel officer: CFO and Treasurer 525 OKEECHOBEE BLVD., SUITE 1770, WEST PALM BEACH FL 33401
Jonathan Gilbert Kalikow director, 10 percent owner, officer: Head of Real Estate 101 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10178
Brett Kaufman officer: CFO and Treasurer 4400 BISCAYNE BLVD., 12TH FLOOR, MIAMI FL 33137
Marnie Migatz Sudnow director 525 OKEECHOBEE BLVD., SUITE 1770, WEST PALM BEACH FL 33401
Thomas L Harrison director
Jodi Hanson Bond director 777 WEST PUTNAM AVENUE, 3RD FLOOR, GREENWICH CT 06830
Alexander C Frank director 525 OKEECHOBEE BLVD., SUITE 1770, WEST PALM BEACH FL 33401
Robert L Levy director 525 OKEECHOBEE BLVD., SUITE 1770, WEST PALM BEACH FL 33401
Tomer Tzur director 7545 SW 54TH AVENUE, MIAMI FL 33143
Thomas Geoffroy officer: CFO and Treasurer 525 OKEECHOBEE BLVD., SUITE 1770, WEST PALM BEACH FL 33401

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