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Reborn Coffee (Reborn Coffee) ROE % : -252.56% (As of Dec. 2023)


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What is Reborn Coffee ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Reborn Coffee's annualized net income for the quarter that ended in Dec. 2023 was $-3.96 Mil. Reborn Coffee's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1.57 Mil. Therefore, Reborn Coffee's annualized ROE % for the quarter that ended in Dec. 2023 was -252.56%.

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

REBN' s ROE % Range Over the Past 10 Years
Min: -1542.6   Med: -136.43   Max: -129.63
Current: -153.45

During the past 5 years, Reborn Coffee's highest ROE % was -129.63%. The lowest was -1,542.60%. And the median was -136.43%.

REBN's ROE % is ranked worse than
96.06% of 330 companies
in the Restaurants industry
Industry Median: 8.345 vs REBN: -153.45

Reborn Coffee ROE % Historical Data

The historical data trend for Reborn Coffee'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.

Reborn Coffee ROE % Chart

Reborn Coffee Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
- - -1,542.60 -129.63 -136.43

Reborn Coffee Quarterly Data
Dec19 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 -95.51 -101.35 -184.82 -155.88 -252.56

Competitive Comparison of Reborn Coffee's ROE %

For the Restaurants subindustry, Reborn Coffee'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.


Reborn Coffee's ROE % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Reborn Coffee's ROE % distribution charts can be found below:

* The bar in red indicates where Reborn Coffee's ROE % falls into.



Reborn Coffee ROE % Calculation

Reborn Coffee'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 )
=-3.998/( (4.287+1.574)/ 2 )
=-3.998/2.9305
=-136.43 %

Reborn Coffee'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 )
=-3.964/( (1.565+1.574)/ 2 )
=-3.964/1.5695
=-252.56 %

* 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.


Reborn Coffee  (NAS:REBN) 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
=-3.964/1.5695
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-3.964 / 7.192)*(7.192 / 8.7205)*(8.7205 / 1.5695)
=Net Margin %*Asset Turnover*Equity Multiplier
=-55.12 %*0.8247*5.5562
=ROA %*Equity Multiplier
=-45.46 %*5.5562
=-252.56 %

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
=-3.964/1.5695
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-3.964 / -3.992) * (-3.992 / -3.976) * (-3.976 / 7.192) * (7.192 / 8.7205) * (8.7205 / 1.5695)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.993 * 1.004 * -55.28 % * 0.8247 * 5.5562
=-252.56 %

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.


Reborn Coffee ROE % Related Terms

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


Reborn Coffee (Reborn Coffee) Business Description

Traded in Other Exchanges
N/A
Address
580 N. Berry Street, Brea, CA, USA, 92821
Reborn Coffee Inc is an operator and franchisor of retail locations and kiosks that focus on serving specialty-roasted coffee. The company operates in one reportable segment, consisting of both the wholesale and retail sales of coffee, water, and other beverages.
Executives
Nasim Andy Farouk Muhamad director NO 21 JALAN SETIABAKTI 9, BUKIT DAMANSARA, KUALA LUMPUR N8 50490
Jay Kim director, 10 percent owner, officer: CEO 6940 BEACH BLVD SUITE D-705, BUENA PARK CA 90621
Jinwoo Kim officer: Chief Financial Officer 580 N. BERRY STREET, BREA CA 92821
Hannah Goh director 580 N. BERRY STREET, BREA CA 92821
Dennis R. Egidi director 580 N. BERRY STREET, BREA CA 92821
Sehan Kim director 580 N. BERRY STREET, BREA CA 92821
Farooq M. Arjomand director, 10 percent owner 580 N. BERRY STREET, BREA CA 92821