GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Archer Aviation Inc (NYSE:ACHR) » Definitions » ROE %

Archer Aviation (Archer Aviation) ROE % : -119.30% (As of Dec. 2023)


View and export this data going back to 2021. Start your Free Trial

What is Archer Aviation ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Archer Aviation's annualized net income for the quarter that ended in Dec. 2023 was $-436.40 Mil. Archer Aviation's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $365.80 Mil. Therefore, Archer Aviation's annualized ROE % for the quarter that ended in Dec. 2023 was -119.30%.

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

ACHR' s ROE % Range Over the Past 10 Years
Min: -119.79   Med: -81.88   Max: -53.23
Current: -119.79

During the past 4 years, Archer Aviation's highest ROE % was -53.23%. The lowest was -119.79%. And the median was -81.88%.

ACHR's ROE % is ranked worse than
93.6% of 297 companies
in the Aerospace & Defense industry
Industry Median: 6.3 vs ACHR: -119.79

Archer Aviation ROE % Historical Data

The historical data trend for Archer Aviation'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.

Archer Aviation ROE % Chart

Archer Aviation Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROE %
-69.08 -94.67 -53.23 -106.44

Archer Aviation 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 -72.65 -100.15 -214.57 -64.42 -119.30

Competitive Comparison of Archer Aviation's ROE %

For the Aerospace & Defense subindustry, Archer Aviation'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.


Archer Aviation's ROE % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Archer Aviation's ROE % distribution charts can be found below:

* The bar in red indicates where Archer Aviation's ROE % falls into.



Archer Aviation ROE % Calculation

Archer Aviation'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 )
=-457.9/( (493.3+367.1)/ 2 )
=-457.9/430.2
=-106.44 %

Archer Aviation'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 )
=-436.4/( (364.5+367.1)/ 2 )
=-436.4/365.8
=-119.30 %

* 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.


Archer Aviation  (NYSE:ACHR) 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
=-436.4/365.8
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-436.4 / 0)*(0 / 546.95)*(546.95 / 365.8)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*1.4952
=ROA %*Equity Multiplier
=N/A %*1.4952
=-119.30 %

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
=-436.4/365.8
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-436.4 / -435.6) * (-435.6 / -429.2) * (-429.2 / 0) * (0 / 546.95) * (546.95 / 365.8)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0018 * 1.0149 * N/A % * 0 * 1.4952
=-119.30 %

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.


Archer Aviation ROE % Related Terms

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


Archer Aviation (Archer Aviation) Business Description

Traded in Other Exchanges
N/A
Address
190 West Tasman Drive, San Jose, CA, USA, 95134
Archer Aviation Inc advances the benefits of sustainable air mobility. It is creating the electric airline that moves people throughout cities in a quick, safe, sustainable, and cost-effective manner. It is designing, manufacturing, and operating a fully electric vertical takeoff and landing aircraft that can carry four passengers for around 60 miles at speeds of up to 150 mph while producing minimal noise.
Executives
Tosha Perkins officer: Chief People Officer 757 N. ELDRIDGE PARKWAY, HOUSTON TX 77079
Andy Missan officer: Chief Legal Officer C/O FITBIT, INC., 405 HOWARD STREET, SAN FRANCISCO CA 94105
N.v. Stellantis 10 percent owner TAURUSAVENUE 1, HOOFDDORP P7 2132LS
Thomas Paul Muniz officer: Chief Operating Officer C/O ARCHE AVIATION INC., 1880 EMBARCADERO ROAD, PALO ALTO CA 94303
Fca Foreign Sales Holdco Ltd. 10 percent owner PINLEY HOUSE, 2 SUNBEAM WAY, CONVENTRY, WEST MIDLANDS X0 CV3 1ND
Sfs Uk 1 Ltd. 10 percent owner PINLEY HOUSE, 2 SUNBEAM WAY, COVENTRY, WEST MIDLANDS X0 CV3 1ND
Fca Italy S.p.a. 10 percent owner CORSO GIOVANNI AGNELLI 200, TURIN L6 10135
Fca Us Llc 10 percent owner 1000 CHRYSLER DRIVE, AUBURN HILLS MI 48326
Fca North America Holdings Llc 10 percent owner 1000 CHRYSLER DRIVE, AUBURN HILLS MI 48326
Brett Adcock 10 percent owner C/O ARCHER AVIATION INC., 1880 EMBARCADERO ROAD, PALO ALTO CA 94303
Deborah Diaz director 6830 OLD DOMINION DRIVE, MCLEAN VA 22101
Mark Mesler officer: Chief Financial Officer C/O ARCHER AVIATION INC., 1880 EMBARCADERO ROAD, PALO ALTO CA 94303
Michael Spellacy director 399 PARK AVENUE, NEW YORK NY 10022
Fred M Diaz director 9614 AMALFI CT, BRENTWOOD TN 37027
Adam D Goldstein director, officer: Co-Chief Executive Officer C/O ARCHER AVIATION INC., 190 TASMAN DRIVE, SAN JOSE CA 95134

Archer Aviation (Archer Aviation) Headlines

From GuruFocus