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Leaf Group (Leaf Group) ROE % : -33.10% (As of Mar. 2021)


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What is Leaf Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Leaf Group's annualized net income for the quarter that ended in Mar. 2021 was $-25.2 Mil. Leaf Group's average Total Stockholders Equity over the quarter that ended in Mar. 2021 was $76.1 Mil. Therefore, Leaf Group's annualized ROE % for the quarter that ended in Mar. 2021 was -33.10%.

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

LEAF' s ROE % Range Over the Past 10 Years
Min: -87.54   Med: -25.55   Max: 1.35
Current: -7.96

During the past 13 years, Leaf Group's highest ROE % was 1.35%. The lowest was -87.54%. And the median was -25.55%.

LEAF's ROE % is not ranked
in the Interactive Media industry.
Industry Median: -0.01 vs LEAF: -7.96

Leaf Group ROE % Historical Data

The historical data trend for Leaf Group'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.

Leaf Group ROE % Chart

Leaf Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.53 -45.03 -37.04 -46.88 -14.05

Leaf Group Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
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 -97.98 7.83 32.77 -17.02 -33.10

Competitive Comparison of Leaf Group's ROE %

For the Internet Content & Information subindustry, Leaf Group'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.


Leaf Group's ROE % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Leaf Group's ROE % distribution charts can be found below:

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



Leaf Group ROE % Calculation

Leaf Group's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=-8.86/( (47.81+78.303)/ 2 )
=-8.86/63.0565
=-14.05 %

Leaf Group's annualized ROE % for the quarter that ended in Mar. 2021 is calculated as

ROE %=Net Income (Q: Mar. 2021 )/( (Total Stockholders Equity (Q: Dec. 2020 )+Total Stockholders Equity (Q: Mar. 2021 ))/ count )
=-25.18/( (78.303+73.823)/ 2 )
=-25.18/76.063
=-33.10 %

* 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 (Mar. 2021) net income data. ROE % is displayed in the 30-year financial page.


Leaf Group  (NYSE:LEAF) 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: Mar. 2021 )
=Net Income/Total Stockholders Equity
=-25.18/76.063
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-25.18 / 207.508)*(207.508 / 132.808)*(132.808 / 76.063)
=Net Margin %*Asset Turnover*Equity Multiplier
=-12.13 %*1.5625*1.746
=ROA %*Equity Multiplier
=-18.95 %*1.746
=-33.10 %

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: Mar. 2021 )
=Net Income/Total Stockholders Equity
=-25.18/76.063
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-25.18 / -25.012) * (-25.012 / -24.5) * (-24.5 / 207.508) * (207.508 / 132.808) * (132.808 / 76.063)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0067 * 1.0209 * -11.81 % * 1.5625 * 1.746
=-33.10 %

Note: The net income data used here is four times the quarterly (Mar. 2021) net income data. The Revenue data used here is four times the quarterly (Mar. 2021) 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.


Leaf Group ROE % Related Terms

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


Leaf Group (Leaf Group) Business Description

Traded in Other Exchanges
N/A
Address
1655 26th Street, Santa Monica, CA, USA, 90404
Leaf Group Ltd is a diversified consumer internet company that builds enduring, creator-driven brands that reach passionate audiences in large and growing lifestyle categories, including fitness and wellness and home, art and design. The company operates in three segments: Society6 Group, Saatchi Art Group, and Media Group. Society6 Group is made-to-order marketplace business and includes Society6.com and its wholesale channel. Saatchi Art Group which includes SaatchiArt.com and its complementary art fair event brand, The Other Art Fair which is online art gallery with a focus on emerging artists. Its Media Group segment consists of a diverse portfolio of media properties that educate and inform consumers on a broad range of topics.
Executives
Adam F. Wergeles officer: EVP, Gen Counsel & Secretary C/O REACHLOCAL, INC. 21700 OXNARD STREET, SUITE 1600 WOODLAND HILLS CA 91367
Sean P Moriarty director, officer: Chief Executive Officer C/O LEAF GROUP LTD., 1655 26TH STREET, SANTA MONICA CA 90404
Brian Gephart officer: Chief Financial Officer 1655 26TH STREET, SANTA MONICA CA 90404
Spectrum Equity Investors V L P 10 percent owner ONE INTERNATIONAL PLACE 29TH FL BOSTON MA 02110
Osmium Capital Ii, Lp other: May be member of 10% group 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
John Hartnett Lewis other: May be member of 10% group 388 MARKET STREET, SUITE 920, SAN FRANCISCO CA 94111
Osmium Spartan L P other: May be member of 10% group 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Osmium Partners, Llc other: May be member of 10% group 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Osmium Capital Lp other: May be member of 10% group 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Sea V Management Llc 10 percent owner 333 MIDDLEFIELD ROAD SUITE 200 MENLO PARK CA 94025
Spectrum Equity Associates V Lp 10 percent owner 333 MIDDLEFIELD ROAD SUITE 200 MENLO PARK CA 94025
Spectrum V Investment Managers Fund Lp 10 percent owner 333 MIDDLEFIELD ROAD SUITE 200 MENLO PARK CA 94025
Osmium Diamond, Lp other: May be member of 10% group C/O OSMIUM PARTNERS, LLC, 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Brian Pike officer: CTO & COO C/O LEAF GROUP LTD. 1655 26TH STREET SANTA MONICA CA 90404
Boyle Capital Management, L.l.c. other: May be member of 10% group 1230 OFFICE PLAZA DRIVE WEST DES MOINES IA 50266-2300