GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » DM Solutions Co Ltd (TSE:6549) » Definitions » ROE %

DM Solutions Co (TSE:6549) ROE % : 12.85% (As of Dec. 2023)


View and export this data going back to 2017. Start your Free Trial

What is DM Solutions Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. DM Solutions Co's annualized net income for the quarter that ended in Dec. 2023 was 円349 Mil. DM Solutions Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was 円2,714 Mil. Therefore, DM Solutions Co's annualized ROE % for the quarter that ended in Dec. 2023 was 12.85%.

The historical rank and industry rank for DM Solutions Co's ROE % or its related term are showing as below:

TSE:6549' s ROE % Range Over the Past 10 Years
Min: -6.31   Med: 11.52   Max: 22.36
Current: 15.78

During the past 8 years, DM Solutions Co's highest ROE % was 22.36%. The lowest was -6.31%. And the median was 11.52%.

TSE:6549's ROE % is ranked better than
82.96% of 986 companies
in the Media - Diversified industry
Industry Median: 2.67 vs TSE:6549: 15.78

DM Solutions Co ROE % Historical Data

The historical data trend for DM Solutions 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.

* Premium members only.

DM Solutions Co ROE % Chart

DM Solutions Co Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROE %
Get a 7-Day Free Trial 13.58 -6.31 22.36 0.25 13.58

DM Solutions Co 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 9.85 20.75 15.64 14.30 12.85

Competitive Comparison of DM Solutions Co's ROE %

For the Advertising Agencies subindustry, DM Solutions 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.


DM Solutions Co's ROE % Distribution in the Media - Diversified Industry

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

* The bar in red indicates where DM Solutions Co's ROE % falls into.



DM Solutions Co ROE % Calculation

DM Solutions Co's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=315.06/( (2162.828+2477.85)/ 2 )
=315.06/2320.339
=13.58 %

DM Solutions Co'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 )
=348.864/( (2670.42+2757.636)/ 2 )
=348.864/2714.028
=12.85 %

* 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.


DM Solutions Co  (TSE:6549) 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
=348.864/2714.028
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(348.864 / 18424.552)*(18424.552 / 6773.946)*(6773.946 / 2714.028)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.89 %*2.7199*2.4959
=ROA %*Equity Multiplier
=5.14 %*2.4959
=12.85 %

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
=348.864/2714.028
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (348.864 / 524.28) * (524.28 / 532.292) * (532.292 / 18424.552) * (18424.552 / 6773.946) * (6773.946 / 2714.028)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6654 * 0.9849 * 2.89 % * 2.7199 * 2.4959
=12.85 %

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.


DM Solutions Co ROE % Related Terms

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


DM Solutions Co (TSE:6549) Business Description

Traded in Other Exchanges
N/A
Address
Musashino-shi, Gotenyama 1-chome, 1-3 Crystal Park Building, 2nd floor, Yubinbango, Tokyo, JPN, 180-0005
DM Solutions Co Ltd is a Japanese firm. It is a marketing company offering direct mailing services, search engine optimization, content marketing, and related services, logistics solutions, enclosed/bundled services, and graphic design and printing services.

DM Solutions Co (TSE:6549) Headlines

No Headlines