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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. American Cannabis Co's annualized net income for the quarter that ended in Sep. 2023 was $-0.63 Mil. American Cannabis Co's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $1.43 Mil. Therefore, American Cannabis Co's annualized ROE % for the quarter that ended in Sep. 2023 was -43.93%.
The historical rank and industry rank for American Cannabis Co's ROE % or its related term are showing as below:
During the past 13 years, American Cannabis Co's highest ROE % was -10.11%. The lowest was -7,867.39%. And the median was -106.49%.
The historical data trend for American Cannabis Co'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.
American Cannabis Co Annual Data | |||||||||||||||||||||
Trend | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | |||||||||||
ROE % | Get a 7-Day Free Trial | -106.49 | -32.04 | -42.44 | -76.83 | -31.74 |
American Cannabis Co Quarterly Data | ||||||||||||||||||||
Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | |
ROE % | Get a 7-Day Free Trial | -109.34 | 116.92 | -110.53 | 3.23 | -43.93 |
For the Consulting Services subindustry, American Cannabis Co'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.
For the Business Services industry and Industrials sector, American Cannabis Co's ROE % distribution charts can be found below:
* The bar in red indicates where American Cannabis Co's ROE % falls into.
American Cannabis Co's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as
ROE % | = | Net Income (A: Dec. 2022 ) | / | ( (Total Stockholders Equity (A: Dec. 2021 ) | + | Total Stockholders Equity (A: Dec. 2022 )) | / count ) |
= | -0.633 | / | ( (2.119 | + | 1.87) | / 2 ) | |
= | -0.633 | / | 1.9945 | ||||
= | -31.74 % |
American Cannabis Co's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as
ROE % | = | Net Income (Q: Sep. 2023 ) | / | ( (Total Stockholders Equity (Q: Jun. 2023 ) | + | Total Stockholders Equity (Q: Sep. 2023 )) | / count ) |
= | -0.628 | / | ( (1.493 | + | 1.366) | / 2 ) | |
= | -0.628 | / | 1.4295 | ||||
= | -43.93 % |
* 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 (Sep. 2023) net income data. ROE % is displayed in the 30-year financial page.
American Cannabis Co (OTCPK:AMMJ) 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: Sep. 2023 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | -0.628 | / | 1.4295 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (-0.628 / 2.4) | * | (2.4 / 4.3105) | * | (4.3105 / 1.4295) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | -26.17 % | * | 0.5568 | * | 3.0154 |
= | ROA % | * | Equity Multiplier | ||
= | -14.57 % | * | 3.0154 | ||
= | -43.93 % |
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: Sep. 2023 ) | ||||||||
= | Net Income | / | Total Stockholders Equity | ||||||
= | -0.628 | / | 1.4295 | ||||||
= | (Net Income / Pre-Tax Income) | * | (Pre-Tax Income / Operating Income) | * | (Operating Income / Revenue) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (-0.628 / -0.628) | * | (-0.628 / -0.516) | * | (-0.516 / 2.4) | * | (2.4 / 4.3105) | * | (4.3105 / 1.4295) |
= | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 1 | * | 1.2171 | * | -21.5 % | * | 0.5568 | * | 3.0154 |
= | -43.93 % |
Note: The net income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 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.
Thank you for viewing the detailed overview of American Cannabis Co's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tyler A Schloesser | officer: Chief Operations Officer | 9874 WEST LA SALLE PLACE, LAKEWOOD CO 80227 |
Ellis Lamar Smith | director, 10 percent owner, officer: Cheif Development Officer | 2590 WALNUT ST, DENVER CO 80205 |
Hollister Corey James Ariel | director, 10 percent owner, officer: Chief Executive Officer | 5316 RUSTIC AVE, FIRESTONE CO 80504 |
David Michael Godfrey | officer: Principal Accounting Officer | 5690 LOGAN STREET, DENVER CO 80237 |
Jon Workman | officer: Vice President | 2600 RAY DEAN ROAD, TUCKER AR 72168 |
Michael Schwanbeck | officer: Chief Financial Officer | 555 E. 19TH AVENUE, #2421, DENVER CO 80203 |
Tad M Mailander | director | 4811 49TH STREET, SAN DIEGO CA 92115 |
Terry Lynn Buffalo | director, officer: CEO | 3063 BRIGHTON BLVD, #918, DENVER CO 80216 |
Jesus Quintero | officer: Former CFO | 16860 SOUTHWEST 1ST STREET, PEMBROKE PINES FL 33027 |
Michael A Novielli | director, 10 percent owner | 100 MILL PLAIN ROAD, 3RD FLOOR, DANBURY CT 06811 |
Anthony J Baroud | director, 10 percent owner, officer: Chief Technology Officer | 211 EAST CIRCLE AVE, PROSPECT HEIGHTS IL 60070 |
Themistocles Psomiadis | director, officer: Chief Executive Officer | 1420 MIDTOWN AVE, APT 407, MOUNT PLEASANT SC 29464 |
Villas Boas Andrea Bezerra Arruda | 10 percent owner | ALAMEDA UAPIXANA, 278, SAO PAULO D5 04085-030 |
Douglas Leighton | director | 312 STUART ST, BOSTON MA 02116 |
Donald Brucker | director, 10 percent owner, officer: VP Research & Development | 110 WEST C STREET, SUITE 1300, SAN DIEGO CA 92101 |
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