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Luvu Brands (Luvu Brands) ROE % : 3.75% (As of Dec. 2023)


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What is Luvu Brands ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Luvu Brands's annualized net income for the quarter that ended in Dec. 2023 was $0.12 Mil. Luvu Brands's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $3.10 Mil. Therefore, Luvu Brands's annualized ROE % for the quarter that ended in Dec. 2023 was 3.75%.

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

LUVU' s ROE % Range Over the Past 10 Years
Min: -2.65   Med: Negative Equity   Max: 10461.22
Current: -2.65

During the past 13 years, Luvu Brands's highest ROE % was 10,461.22%. The lowest was -2.65%. And the median was Negative Equity%.

LUVU's ROE % is ranked worse than
79.81% of 416 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 6.515 vs LUVU: -2.65

Luvu Brands ROE % Historical Data

The historical data trend for Luvu Brands'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.

Luvu Brands ROE % Chart

Luvu Brands Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - Negative Equity 10,461.22 36.86 46.45

Luvu Brands Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 98.70 35.22 -33.61 -16.04 3.75

Competitive Comparison of Luvu Brands's ROE %

For the Furnishings, Fixtures & Appliances subindustry, Luvu Brands'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.


Luvu Brands's ROE % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Luvu Brands's ROE % distribution charts can be found below:

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



Luvu Brands ROE % Calculation

Luvu Brands's annualized ROE % for the fiscal year that ended in Jun. 2023 is calculated as

ROE %=Net Income (A: Jun. 2023 )/( (Total Stockholders Equity (A: Jun. 2022 )+Total Stockholders Equity (A: Jun. 2023 ))/ count )
=1.199/( (1.954+3.209)/ 2 )
=1.199/2.5815
=46.45 %

Luvu Brands'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 )
=0.116/( (3.077+3.117)/ 2 )
=0.116/3.097
=3.75 %

* 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.


Luvu Brands  (OTCPK:LUVU) 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
=0.116/3.097
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.116 / 27.144)*(27.144 / 10.2625)*(10.2625 / 3.097)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.43 %*2.645*3.3137
=ROA %*Equity Multiplier
=1.14 %*3.3137
=3.75 %

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
=0.116/3.097
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.116 / 0.24) * (0.24 / 0.616) * (0.616 / 27.144) * (27.144 / 10.2625) * (10.2625 / 3.097)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.4833 * 0.3896 * 2.27 % * 2.645 * 3.3137
=3.75 %

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.


Luvu Brands ROE % Related Terms

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


Luvu Brands (Luvu Brands) Business Description

Traded in Other Exchanges
N/A
Address
2745 Bankers Industrial Drive, Atlanta, GA, USA, 30360
Luvu Brands Inc designs, manufactures, and markets a portfolio of consumer lifestyle brands including Liberator, a brand category of iconic products for enhancing sensuality and intimacy; Avana, inclined bed therapy products, assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain; and Jaxx, a diverse range of casual fashion daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam. It conducts its business through three primary sales channels: Direct, Wholesale, and Others. The brands of the company involve Avana, Liberator, Jaxx, Panelist, CreAtl and Zipline.
Executives
Martin P Scott officer: Chief Financial Officer SIMPLEPONS, INC., C/O 220 CONGRESS PARK DRIVE, SUITE 304, DELRAY BEACH FL 33445
Alexander A. Sannikov officer: Chief Financial Officer 2745 BANKERS INDUSTRIAL DR, ATLANTA GA 30360
Ronald P Scott director, officer: CFO & Secretary 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Manuel Munoz officer: Chief Information Officer 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Louis S Friedman director, officer: President & CEO 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Sean Hougham officer: Vice President - Manufacturing 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Donald Cohen 10 percent owner 2745 BANKERS INDUSTRIAL DRIVE, DORAVILLE GA 30360
James Blanchard officer: Senior VP-Business Development 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Michael Kane officer: Executive Vice President 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Leslie Vogelman officer: Treasurer 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Rufina Bulatova officer: Vice President Online Market. 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Fyodor Petrenko 10 percent owner, officer: Vice President 204 SALEM CT, APT 5, PRINCETON NJ 08540
David Wirth officer: Vice President - Operations 2745 BANKERS INDUSTRIAL DRIVE, DORAVILLE GA 30360
Belmont Partners, Llc 10 percent owner 360 MAIN STREET, P.O. BOX 393, WASHINGTON VA 22747
Joseph J Meuse director, officer: President 211 FALMOUTH STREET, WARRENTON VA 20186