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Emmis (EMMS) ROE % : -34.27% (As of Feb. 2020)


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What is Emmis ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Emmis's annualized net income for the quarter that ended in Feb. 2020 was $-43.69 Mil. Emmis's average Total Stockholders Equity over the quarter that ended in Feb. 2020 was $127.50 Mil. Therefore, Emmis's annualized ROE % for the quarter that ended in Feb. 2020 was -34.27%.

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

EMMS's ROE % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.54
* Ranked among companies with meaningful ROE % only.

Emmis ROE % Historical Data

The historical data trend for Emmis'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.

Emmis ROE % Chart

Emmis Annual Data
Trend Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Equity Negative Equity 1,542.91 38.99 52.55

Emmis Quarterly Data
May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20
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 -2.61 9.12 36.05 194.82 -34.27

Competitive Comparison of Emmis's ROE %

For the Broadcasting subindustry, Emmis'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.


Emmis's ROE % Distribution in the Media - Diversified Industry

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

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



Emmis ROE % Calculation

Emmis's annualized ROE % for the fiscal year that ended in Feb. 2020 is calculated as

ROE %=Net Income (A: Feb. 2020 )/( (Total Stockholders Equity (A: Feb. 2019 )+Total Stockholders Equity (A: Feb. 2020 ))/ count )
=50.485/( (72.214+119.924)/ 2 )
=50.485/96.069
=52.55 %

Emmis's annualized ROE % for the quarter that ended in Feb. 2020 is calculated as

ROE %=Net Income (Q: Feb. 2020 )/( (Total Stockholders Equity (Q: Nov. 2019 )+Total Stockholders Equity (Q: Feb. 2020 ))/ count )
=-43.692/( (135.08+119.924)/ 2 )
=-43.692/127.502
=-34.27 %

* 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 (Feb. 2020) net income data. ROE % is displayed in the 30-year financial page.


Emmis  (OTCPK:EMMS) 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: Feb. 2020 )
=Net Income/Total Stockholders Equity
=-43.692/127.502
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-43.692 / 41.776)*(41.776 / 231.7495)*(231.7495 / 127.502)
=Net Margin %*Asset Turnover*Equity Multiplier
=-104.59 %*0.1803*1.8176
=ROA %*Equity Multiplier
=-18.86 %*1.8176
=-34.27 %

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: Feb. 2020 )
=Net Income/Total Stockholders Equity
=-43.692/127.502
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-43.692 / -73.344) * (-73.344 / -11.148) * (-11.148 / 41.776) * (41.776 / 231.7495) * (231.7495 / 127.502)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5957 * 6.5791 * -26.69 % * 0.1803 * 1.8176
=-34.27 %

Note: The net income data used here is four times the quarterly (Feb. 2020) net income data. The Revenue data used here is four times the quarterly (Feb. 2020) 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.


Emmis ROE % Related Terms

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


Emmis (EMMS) Business Description

Traded in Other Exchanges
N/A
Address
40 Monument Circle, Suite 700, One EMMIS Plaza, Indianapolis, IN, USA, 46204
Emmis Corp, formerly Emmis Communications Corp is a diversified media company principally focused on radio broadcasting. The company owns and operates radio and magazine entities in large and medium-sized markets throughout the United States. Its operations have aligned into two business segments: Radio and Publishing. A vast majority of revenue is generated from the Radio segment. The company generates revenue in the form of Advertising; Circulation, which includes revenues from digital and home delivery subscriptions; Nontraditional, which includes ticket sales and sponsorship of events on their stations and magazine conduct; LMA(Local Marketing Agreement) Fees; and other revenues.
Executives
Patrick M Walsh officer: President, COO 40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
Ryan A Hornaday officer: EVP, CFO & Treasurer 40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
Gregory T Loewen officer: President - Publishing 40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
Jeffrey H Smulyan director, 10 percent owner, officer: Chairman,CEO, other: member of 10% 13(d) group
J. Scott Enright officer: EVP, Gen Counsel & Secretary 40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
James M Dubin director ONE MADISON PLACE, HARRISON NY 10528
Greg Nathanson director
Lawrence B Sorrel director
Peter A Lund director 236 LOCHA DRIVE, JUPITER FL 33458
Susan B Bayh director WELLPOINT, INC., 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Richard A Leventhal director
Paul V. Brenner officer: President 40 MONUMENT CIRCLE, SUITE 700, INDIANAPOLIS IN 46204
Gary L Kaseff director
Richard F Cummings officer: Radio Division President
Herbert Simon other: Member of 10% owner 13d group 115 W WASHINGTON ST, INDIANAPOLIS IN 46204

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