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Linmon Media (HKSE:09857) ROE % : 6.48% (As of Dec. 2023)


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What is Linmon Media ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Linmon Media's annualized net income for the quarter that ended in Dec. 2023 was HK$181 Mil. Linmon Media's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was HK$2,791 Mil. Therefore, Linmon Media's annualized ROE % for the quarter that ended in Dec. 2023 was 6.48%.

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

HKSE:09857' s ROE % Range Over the Past 10 Years
Min: -155.69   Med: Negative Equity   Max: Negative Equity
Current: 8.49

During the past 5 years, Linmon Media's highest ROE % was Negative Equity%. The lowest was -155.69%. And the median was Negative Equity%.

HKSE:09857's ROE % is ranked better than
69.37% of 986 companies
in the Media - Diversified industry
Industry Median: 2.54 vs HKSE:09857: 8.49

Linmon Media ROE % Historical Data

The historical data trend for Linmon Media'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.

Linmon Media ROE % Chart

Linmon Media Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Negative Equity Negative Equity Negative Equity -155.69 8.52

Linmon Media Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROE % Get a 7-Day Free Trial - - -280.03 10.54 6.48

Competitive Comparison of Linmon Media's ROE %

For the Entertainment subindustry, Linmon Media'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.


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

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

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



Linmon Media ROE % Calculation

Linmon Media'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 )
=233.662/( (2669.473+2815.981)/ 2 )
=233.662/2742.727
=8.52 %

Linmon Media's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=180.858/( (2766.496+2815.981)/ 2 )
=180.858/2791.2385
=6.48 %

* 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 two times the semi-annual (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Linmon Media  (HKSE:09857) 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
=180.858/2791.2385
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(180.858 / 1749.128)*(1749.128 / 3773.85)*(3773.85 / 2791.2385)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.34 %*0.4635*1.352
=ROA %*Equity Multiplier
=4.79 %*1.352
=6.48 %

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
=180.858/2791.2385
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (180.858 / 259.122) * (259.122 / 311.538) * (311.538 / 1749.128) * (1749.128 / 3773.85) * (3773.85 / 2791.2385)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.698 * 0.8318 * 17.81 % * 0.4635 * 1.352
=6.48 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (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.


Linmon Media ROE % Related Terms

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


Linmon Media (HKSE:09857) Business Description

Traded in Other Exchanges
N/A
Address
SOHO Renaissance Plaza, 28th Floor, Building A, Huangpu District, Shanghai, CHN
Linmon Media Ltd is a drama series production company in China with a track record of creating premium content. The company typically creates high viewership drama series based on its abundant reserve of original IPs. The majority of the Company's revenue is earned in Mainland China.
Executives
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you
Meoo Limited 2201 Interest of corporation controlled by you
Shang Hai Hong Ni Qi Ye Guan Li He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Tencent Mobility Limited
Tencent Holdings Limited
Zhou Yuan 2201 Interest of corporation controlled by you
Z&n Investment Limited 2201 Interest of corporation controlled by you
Xu Xiao Ou 2201 Interest of corporation controlled by you
Su Xiao 2201 Interest of corporation controlled by you
Great Luminosity Limited 2101 Beneficial owner
Linmon Run Limited 2101 Beneficial owner
Lemontree Harvest Investment Limited 2101 Beneficial owner
Lemontree Evergreen Holding Limited 2201 Interest of corporation controlled by you
Free Flight Limited 2201 Interest of corporation controlled by you
Faye Free Flight Limited 2101 Beneficial owner

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