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Verde Clean Fuels (Verde Clean Fuels) ROE % : -11.14% (As of Dec. 2023)


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What is Verde Clean Fuels ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Verde Clean Fuels's annualized net income for the quarter that ended in Dec. 2023 was $-2.59 Mil. Verde Clean Fuels's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $23.24 Mil. Therefore, Verde Clean Fuels's annualized ROE % for the quarter that ended in Dec. 2023 was -11.14%.

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

VGAS' s ROE % Range Over the Past 10 Years
Min: -19.12   Med: 4992.41   Max: Negative Equity
Current: -19.12

During the past 4 years, Verde Clean Fuels's highest ROE % was Negative Equity%. The lowest was -19.12%. And the median was 4,992.41%.

VGAS's ROE % is ranked worse than
86.56% of 424 companies
in the Utilities - Independent Power Producers industry
Industry Median: 5.975 vs VGAS: -19.12

Verde Clean Fuels ROE % Historical Data

The historical data trend for Verde Clean Fuels'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.

Verde Clean Fuels ROE % Chart

Verde Clean Fuels Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROE %
- - Negative Equity -15.19

Verde Clean Fuels Quarterly Data
Mar21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only -319.49 -34.59 -24.83 -26.40 -11.14

Competitive Comparison of Verde Clean Fuels's ROE %

For the Utilities - Renewable subindustry, Verde Clean Fuels'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.


Verde Clean Fuels's ROE % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Verde Clean Fuels's ROE % distribution charts can be found below:

* The bar in red indicates where Verde Clean Fuels's ROE % falls into.



Verde Clean Fuels ROE % Calculation

Verde Clean Fuels'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 )
=-2.744/( (1.103+35.018)/ 2 )
=-2.744/18.0605
=-15.19 %

Verde Clean Fuels'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 )
=-2.588/( (11.464+35.018)/ 2 )
=-2.588/23.241
=-11.14 %

* 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.


Verde Clean Fuels  (NAS:VGAS) 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
=-2.588/23.241
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-2.588 / 0)*(0 / 33.249)*(33.249 / 23.241)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*1.4306
=ROA %*Equity Multiplier
=N/A %*1.4306
=-11.14 %

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
=-2.588/23.241
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-2.588 / -8.62) * (-8.62 / -9.452) * (-9.452 / 0) * (0 / 33.249) * (33.249 / 23.241)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.3002 * 0.912 * N/A % * 0 * 1.4306
=-11.14 %

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.


Verde Clean Fuels ROE % Related Terms

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


Verde Clean Fuels (Verde Clean Fuels) Business Description

Traded in Other Exchanges
N/A
Address
600 Travis Street, Suite 5050, Houston, TX, USA, 77002
Verde Clean Fuels Inc is a renewable energy company specializing in the conversion of synthesis gas, or syngas, derived from diverse feedstocks, such as biomass, MSW and mixed plastics, as well as natural gas (including synthetic natural gas) and other feedstocks, into liquid hydrocarbons that can be used as gasoline through an innovative and proprietary liquid fuels technology, the STG process.
Executives
J Russell Porter 10 percent owner 1331 LAMAR STREET SUITE 1080, HOUSTON TX 77010
Connally John B Iii 10 percent owner 16MARCUS CO, 1600 ROCKCLIFF ROAD, AUSTIN TX 78746
Cenaq Sponsor Llc. 10 percent owner 4550 POST OAK PLACE DRIVE, SUITE 300, HOUSTON TX 77027
Michael J Mayell 10 percent owner C/O MERIDIAN RESOURCE CORP, 1401 ENCLAVE PARKWAY #300, HOUSTON TX 77077
Martijn Dekker director 600 TRAVIS STREET, HOUSTON TX 77002
Cottonmouth Ventures Llc 10 percent owner 500 WEST TEXAS AVE., SUITE 100, MIDLAND TX 79701
John R. Doyle officer: Chief Technology Officer 600 TRAVIS STREET, SUITE 5050, HOUSTON TX 77002
Ernest B. Miller officer: CEO and Interim CFO 600 TRAVIS STREET, SUITE 5050, HOUSTON TX 77002
Bluescape Clean Fuels Holdings, Llc 10 percent owner 300 CRESCENT COURT, SUITE 1860, DALLAS TX 75201
Claire Dail St. director 300 EAST 57TH STREET, NEW YORK NY 10022
Bluescape Energy Recapitalization & Restructuring Fund Iv Lp 10 percent owner 200 CRESCENT COURT, SUITE 1900, DALLAS TX 75201
Diamondback Energy E&p Llc 10 percent owner 14301 CALIBER DRIVE, SUITE 300, OKLAHOMA CITY OK 73134
Hoff Graham Vant director C/O BLUESCAPE ENERGY PARTNERS, LLC, 200 CRESCENT COURT, SUITE 1900, DALLAS TX 75201
Jonathan A Siegler director 1601 BRYAN STREET, DALLAS TX 75201
Duncan Palmer director ONE OWENS CORNING PARKWAY, TOLEDO OH 43659